Slump grows worse for civil engineering

20 August 2009

The construction recession has continued to deepen, despite an apparent slow in the rate of deterioration in the first quarter of 2009, according to new research.

The Civil Engineering Contractors Association’s (CECA) workload trends survey for July 2009 revealed deterioration in workloads over the course of the second quarter.

CECA reported that Wales showed a ‘sharp deterioration’, while the weakening trend was also evident in England, but less pronounced. However, the figures showed the downward trend in Scotland had ‘slowed slightly’.

CECA national director, Rosemary Beales, warned that the reduction in work was forcing tender prices down. ‘[This is] a factor that will have long-term ramifications for both the health of the civil engineering contracting market and for clients,’ she said.

‘It is imperative that contractors and clients maintain a serious dialogue about sustaining the long-term health of the industry, which is as much in the interests of those who want value for their investment in infrastructure as it is in the interests of the contractors who build and maintain it.’

Beales revealed that tender prices started to fall in January 2009, and the rate of decline has been gathering pace over the course of the last quarter. She called on all firms to refrain from offering cheaper tenders, which could lead to lower quality work and possibly cause contractors to cut corners.

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