Capacity issues and contractors being risk-averse cited as reasons for companies thinking twice about tendering work
Nearly half of the firms questioned in a Gleeds sentiment survey say they have had problems getting problems getting firms to bid their jobs.
It said contractors reporting substantial losses due to factors such as subcontractor failures, labour shortages and building safety liabilities had all made some firms think twice before working up tenders.
It added: 鈥淔our in 10 of our survey respondents told us they had experienced difficulties in securing a sufficient number of tenderers in 2Q 2024 due to ongoing capacity issues and a generally cautious supply chain.鈥�
The survey found that 80% of contractors questioned said their supply chain had declined an opportunity to bid a job with 28% saying firms had refused because of contract terms and risk profile.
And it said: 鈥淎dditionally, the unexpected announcement that Lendlease will withdraw from the UK market has added to industry concerns.鈥�
But it said supply chains in some regions and sectors were willing to consider single-stage tenders.
The survey said optimism was growing, adding: 鈥淥ur survey respondents were positive towards Labour鈥檚 policies 鈥� 57% think plans to merge the National Infrastructure Commission and Infrastructure and Project Authority will improve project delivery, and 43% support the building of nationally significant infrastructure projects on green belt land.鈥�
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