THE CHANGING FACE OF OUR INDUSTRY

The construction industry is at a watershed. Its structure is changing dramatically with far reaching effects for all firms - from the biggest down to the smallest.

Overcapacity, government policy, environmental concerns and the Private Finance Initiative are all determining the future direction of the industry. The Latham review and changing attitudes among clients are leading to structural and contractual variations which could see many of construction's traditional methods of operation being abandoned as contractors are forced to take more risks, cut costs and provide a better quality service.

A leading contractor told recently how a client he had dealt with for years and with whom he had forged an excellent relationship had suddenly changed the rules of engagement. He told the contractor: 'You take all the risk from now on. Why should I take risk? If you do not want to do it, there are many firms who will.'

Against the background of such changes Touche Ross has employed fine timing in publishing a new survey of the industry called 'The construction industry - the next three years'. The firm questioned contractors, clients, materials firms, associations and city analysts. Amec, Bryant, Laing, Mowlem, Taylor Woodrow and Tilbury Douglas were all questioned along with the Federation of Civil Engineering Contractors and the Building Employers Confederation.

The result is a detailed study of many key aspects of the industry including banks, private finance, overcapacity, bonds, Latham and the environment. Each subject analysis is backed by key quotes from the respondents, although anonymity is maintained.