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Building a Better Future for the Construction Industry

NFB: Interserve highlights need for urgent procurement reform   15th March 2019

The decision on Interserve’s future shows why we need to reform the procurement process from its foundations 

The primary concerns of the National Federation of Builders (NFB) is the supply chain and the thousands of workers who will be wondering if they still have a job on the morning of 18 March and in the months to come.

The news regarding Interserve also highlights why reforming procurement is so vital. It also demonstrates the importance of using companies that win work on reputation and those that are engrained into their local supply chains.

As with Carillion’s collapse, the NFB will be doing all it can to support members who are part of Interserve’s supply chain, as well as the many workers and apprentices affected by this decision.

Richard Beresford, chief executive of the NFB, said: “This decision on Interserve’s future shows why we need to reform the procurement process from its foundations to ensure that more regional contractors can compete and win work, the damaging trend to work within wafer thin profit margins does not continue, and spread risk across fiscally responsible businesses who reinvest profits and are not bound by shareholders.”

Neil Walters, national chair of the NFB, said: “When will clients see the advantage of using financially sound SMEs, who are in control of their business and win work on reputation?

“Tier 1 contractors must reform to demonstrate value for money, an appropriate financial model and respect for their suppliers, staff, and the long term victims of their decisions. Otherwise this cycle of failure will keep hurting our industry, costing taxpayers’ money and good people their jobs and businesses.”  

 

  

 

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