RLB NW reveals key concerns of construction contractors over next 12 months

RLB Manchester’s Procurement Trends survey surveyed 113 main contractors within RLB’s supply chain across the UK to provide a snapshot of the latest market sentiment on procurement trends and issues.

The survey reveals the top concerns of contractors looking forward to their next 12 months of pipeline are:

• Effect of COVID-19 on the market
• Material cost and availability
• Supply chain capacity

Key findings include:

• The North West region is most concerned by the impact of COVID-19 on the market
• Clients in the North West region are the most likely to retain some control over their design, as the region most likely to use traditional forms of contract but also to issue stage 4 design when using a Design and Build
• The average fixed price period being offered by contractors has decreased by 5 months since 2019 to just 16 month
• Input costs are rising quicker than tender prices
• Material cost and availability remain the largest concern for contractors in the next 12 months
• BIM is still not being provided at tender stages ,with only 28% of those surveyed stating that projects had provided models in procurement
• An increased rate of adoption of MMC, but slower progress in adoption than in 2019
• Envelope trades including Brickwork & Blockwork and Cladding & Curtain Walling are the most heated trades in the UK
• There is a 8% drop in projects using value-based selection criteria in procurement, now just 57% of projects.
• There is a shift towards Stage 4 design being issued at tender stage for Design and Build
• There is an increase in the popularity of Design & Build – to 66% of projects in those surveyed – despite concerns over quality delivered through the procurement route.

Download the full report below

RLB Procurement Trends Report 2021_16Feb21 Final