New brick code leaves buyers unconvinced

A new code of practice which aims to prevent brick prices from being distorted by brick factors has been criticised by construction firms.

The Brick Development Association, which represents over 90% of brick manufacturers, believes that its new trading code, which came into effect on 1 August, will outlaw brick covering.

However, the Chartered Institute of Purchasing and Supply, which has spent 22 years calling for brick manufacturers to put their house in order, is doubtful.

Peter Harris, chairman of the CIPS construction committee, said: "The new code is still a bit airy fairy. It is not the complete answer."

The chief buyer with one northern construction group said: "I don't expect things to change overnight. There will always be brick factors who use shady practices to secure an order. It's a fine line between corruption and malpractice."

In a letter to CJ following last week's article "Brick scam adds œ40m to tenders", Michael Ankers, BDA chief executive, said that the figure was a crude, misleading calculation, presenting a false impression of the current situation.

Ankers said: "It totally fails to recognise all that is being done by the industry - brick manufacturers, builders merchants and brick factors - to improve the way that bricks are traded."

Brick factors, who account for 35% of the UK's annual 3 billion brick sales, "cover" new projects to be built in brick by making a deal with the brick manufacturer. Having agreed a price, typically œ40 per 1,000 above the market price, the manufacturer then quotes all other parties a figure œ20 higher still.

Ankers insisted: "The idea that whoever is quickest off the mark can block everyone else has no place in the code."

But Graham Bell, chief buyer with Geoffrey Osborne, said: "The industry is sceptical about the BDA's new code. In the past I've found every yellow stock in the entire south east has been covered because word has gone round that Osborne is buying, covering having been done by brick factors we haven't even spoken to."

Bell said that, while the BDA has a responsibility to pursue the new code, it cannot punish offenders. "At worst it can withdraw membership," he pointed out, "but non-membership is not taken seriously in the industry."

A buyer for a Yorkshire construction firm said: "The architects are the real problem. They tell a brick factor what they are planning and ask him to suggest a brick that will get through planning."