Straight Talk from D-Drill’s boss

23 September 2010

In 1998 Sir John Egan delivered his report on the UK construction industry entitled “Rethinking Construction”, commissioned by the government of the day. In it he argued that the industry needed to change radically if it was to prosper in the future.

In particular he warned that the ongoing low profitability in the sector needed to be addressed. One of the causes of low financial returns Egan identified was the long standing confrontational nature of the way the sector did business within its own supply chain and with its customers. By studying international comparisons where there was a different business culture in the construction sector he showed how the UK industry was losing up to 8 percentage points of net profit from disputes, claim and counter claim and litigation.

In other words it was costing us all a lot of money and only the lawyers were winning.

10 years later in 2008 Egan reported again to say that not much had changed. In other words it was STILL costing us all a lot of money and the lawyers were STILL winning.

Now we come to 2010, specifically to the dinner at the recent EDA conference and the derogatory remarks about demolition contractors attributed to a senior member of the Drilling & Sawing Association. The Secretary of the DSA has been quick to say these comments do not represent the views of most DSA members. However what I heard said by people from both sectors indicates that, at the very least we have a lack of respect for each other!!

But then I remembered the Egan reports.  Here were two sectors of the industry which frequently need to work together demonstrating exactly the attitudes and behaviours that Egan identified as being so costly. So if we keep on doing what we have always done, it will go on costing us all a lot of money and the lawyers will continue to be the only winners.

Well I for one would like to stop doing what we have always done, find a different way and make more money. I am not offering to try and change the whole industry, at least not right now, I haven’t got the time. But if any demolition company is beginning to think the same way I am and would like to talk about how your business and my business could work together differently and BOTH make more money as a result then I am up for it………

Just contact me on juliewhite@d-drill.co.uk

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