If Sir Michael Latham were asked by Government to share his morning
bath with a shoal of piranhas for a week, he would consult widely,
then convert them to vegetarianism before emerging sleek, dapper
and eager for his next public engagement (Conservative Party
chairman, no doubt). It would be a piece of cake after cudgelling
his brain to synthesise his experiences of the past 12
months.
Extravagant praise, indeed. But not over-extravagant in the light
of the wholly admirable report published this week, which not only
coolly outlines the root causes of the industry's ills, but also -
and this is the remarkable bit - proposes a visionary yet
hard-headed strategy for reform that has instantly won support
across the entire spectrum of the construction industry. Even the
calls for contract legislation, through a Construction Contracts
Bill, with all that implies for extermination of unfair conditions,
are not dividing trade organisations.
Cynics may suspect that support is less than wholly genuine: no
one, they suggest, likes to appear a party pooper when euphoria is
all around. But such a view sits uneasily with the testament of
various contracting parties, by nature sworn enemies, whose
participation in this great exercise seems to have brought them
together. Sir Michael speaks of a 'tremendous spirit of cooperation
and mutual confidence' emerging during his consultations, which for
those who know the parties he refers to, and recall their habitual
behaviour around a JCT table, is astonishing. We have catharsis, it
seems, where we might normally expect catatonia.
There is even agreement that this is not purely a 'fair weather'
document - that it can cope with recession, and would have lessened
the collective pain had its main framework been in place four years
ago. As long as clients resist the siren call of impossibly low
tenders - and Sir Michael specifically adjures this - the
document's insistence on teamwork, trust funds, ongoing
adjudication and avoidance of unfair contract terms would have
assuaged much of the grief we have all lived with, or not been able
to live with, in the recent past. As Martin Barnes, whose hard work
over the years on the New Engineering Contract is at last receiving
reward, says: 'Boom and bust cycles exacerbate the problem, but
they are not its cause.'
Will the Latham Report be accepted? Will it be implemented, whole,
as its author rightly insists it must be? The onus is entirely on
clients. They alone, be they Government or private, have the power
to ensure this unique opportunity for reform is not lost, and
lamented by future generations. So far, the signs are good. Client
bodies appear determined at last to grasp the nettle. And
Government, the report's initiators, can hardly shrink from
promoting 'best practice' throughout its ranks. It is the point to
which commentators on national newspapers have been blind. They
have totally underestimated the desire for change that unites most
clients. And most contractors too. Their receptiveness makes this a
report whose time has come.