Confidence in the Scottish construction industry is “flatlining” as the costs of participating in public tenders become “prohibitive”, new research warns.
The Scottish Building Federation survey also suggests that the majority of smaller construction firms are actively avoiding participation in public tenders because the associated costs are prohibitively high.
According to the report, 2009 is “generally recognised as having been one of the worst the building sector has ever experienced”, with thousands of jobs lost and many firms forced into bankruptcy as a result of the recession.
But with many commentators now focused on recovery, the new survey suggests that confidence amongst Scottish construction companies remains “very shaky”. Almost 80 per cent of those responding indicated they are less confident or no more confident about the outlook for their business over the next 12 months, compared with the past year. Meanwhile, overall business sentiment within the industry remains negative with a combined confidence rating of -20.
Scottish Building Federation chief executive Michael Levack said: “Our members are telling us that the cost of bidding for each new public contract can run into the thousands of pounds. For our larger member firms, that’s a significant cost when you consider that, on average, they win one out of every five contracts they bid for.
“The Scottish Government needs to act now to streamline the public procurement process.”
Article ProcurementLeaders.com
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