A Government-commissioned independent review has found that the UK’s construction industry faces “inexorable decline” unless radical steps are taken to address its longstanding problems.
The Farmer Review of the UK Construction Labour Model pointed to a dysfunctional training model, lack of innovation and collaboration, and non-existent research and development culture as some of the causes of low productivity across the sector.
The Review ultimately states that construction firms and the businesses that hire them need to be better aligned in order to combat the threat of high levels of cost inflation and skills shortages.
Commenting on his findings, Mark Farmer said: “If you buy a new car, you expect it to have been built in a factory to exacting standards, to be delivered on time, to an agreed price and to a predetermined quality.
“This needs to happen more in construction, so that the investors, developers or building owners hiring construction firms increasingly dictate the use of modern methods of delivery and invest appropriately in the skills agenda to grow this part of the industry. There are more similarities between manufacturing and construction than many people are led to believe and this perception needs to change, starting in the housing market.”
One of the recommendations set out for the medium term is a deterrent scheme that would see a tax levy placed on businesses that buy construction work in a way that doesn’t support industry innovation or skills development.
Under the proposed scheme, clients could face paying a suggested levy equal to 0.5% of a scheme’s construction cost but would have the ability to avoid paying this tax completely by commissioning construction in a more responsible way.
Farmer, a 25-year veteran of the industry, and former partner at EC Harris, said the industry needs to be far more joined-up with its clients in how it approaches R&D and skills. He also wants ministers to directly intervene in certain areas to ensure many of the issues identified are rectified.
