Market forces down prices


Market forces down prices Market forces down prices The majority of local authorities are awarding contracts on the basis of lowest cost, according to a report from the Specialist Engineering Contractors (SEC) Group. The SEC Group conducted the survey among members of the Association of Plumbing and Heating Contractors, The Electrical Contractors' Association and the Heating and Ventilating Contractors' Association. Some 88% of respondents said that the majority of their local authority work continued to be let on lowest price alone, while 60% indicated that quality had not been a deciding factor in the award of any of their contracts. This pattern was repeated by first-line contractors subletting local authority work, with 64% confirming that all of their sub-contracts were awarded on lowest price. Almost 90% reported that most of their direct contracts with local authorities did not involve a partnering element. SEC Group chief executive Rudi Klein urged local authorities to