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BSRIA study shows close working relationships between clients and contractors |
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Wednesday, 31 January 2007 |
 Over the six years of Key Performance Indicators (KPIs), there has been a gradual increase in the percentage of clients working regularly with M&E contractors. This has been matched by a gradual decline in the percentage of contractors being used for the first time, refers a BSRIA's press release.
In the latest KPI survey, clients were asked to appraise the mechanical and electrical (M&E) contractor that they had worked with on their most recent construction project. While around 38 percent of clients reported working with their preferred M&E contractor, 33 percent had only worked with their contractor occasionally, while 29 percent of clients had no prior experience with the M&E contractor being appraised.The question is whether this shift has made a difference to the outcome of projects. The answer is yes. Overall, the performance rating by clients for satisfaction with service shows that 66 percent of M&E contractors scored eight or more on their completed projects in 2005 (a score of eight out of 10 is considered a good project outcome).
The headline data masks the fact that the scores were 80 percent in those projects where the client and M&E contractor had worked regularly, but were as low as 49 percent where there had been no prior working relationship.
There has also been a trend away from procurement on a lowest price basis (31 percent in 2001 to 16 percent in 2006) and greater evidence of negotiated contracts (from 22 percent in 2001 to 36 percent in 2006). In 2006, the remaining 48 percent of clients selected their M&E contractor on a price or quality basis. This suggests that price still remains the dominant selection criterion (64 percent of cases).
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