Contractors making more spec decisions

More contractors than ever before are specifying Corus products and systems, according to the steel producer, indicating main contractors’ growing influence in the supply chain.

Main contractors are often making the final decisions on specifications. Indeed Corus noted that “many decisions to specify are now much more of a joint decision”.

A central division of Corus analyses sales data generated by the group’s 14 business units in the construction sector every year. For the 2005/06 financial year it took a random sample of 500 completed projects and found that in nearly a fifth of cases contractors specified, or played a major role in specifying, Corus’s products.

Going back to the late 90s, Corus estimates contractors were responsible for 10% of specification decisions, but now Corus puts the figure at 15% to 20%, with much of the growth coming during the past five to eight years.

Murray Bean, director of Corus’s Construction Solutions division, said: “What we are seeing is a trend that highlights the growing importance of main contractors in the specification of Corus products and systems. While the quality and comprehensiveness of our systems is important, a key consideration when re-specifying revolves around the level of technical expertise and advice we are able to provide. This highlights a growing sophistication in contractors’ decision-making process.”

Allan Wilén, economics director at the Construction Products Association, added: “The findings highlight how construction design and procurement practices are evolving as the government turns to PFI to deliver major capital projects.

“The government and many major private sector clients are increasingly looking to contractors, bidding for major projects, to demonstrate an integrated supply chain.

“Early involvement at the design stage of construction product manufacturers can ensure cost-effective delivery planned schemes.”