SamWilko Advisory Industry Advice

Transport, Construction & Technical Services

Lowest price contracting, why does it persist in Engineering and Construction?

Lowest price contracting, why does it persist in Engineering and Construction?

Lowest price contracting, why does it persist in Engineering and Construction? From the perspective of the client at the top of the contracting chain, low price tendering makes sense. Who wouldn’t want to maximise the return made from a project? Having a strategy is what healthy businesses need, to keep evolving, to keep looking to improve and to harness the energy of their staff.

Five Forces Revisited – Has Anything Changed in Engineering and Construction?

Five Forces Revisited – Has Anything Changed in Engineering and Construction?

Peter Wilkinson wrote about the competitive dynamics of the Engineering & Construction contracting market in “The Steel Ceiling: Achieving Sustainable Growth in Engineering and Construction” (Wiley, 2023) using a model developed for this purpose by Michael Porter called “5-Forces”. In this article he revisits this model and considers what’s happening in the industry, and what this may mean for profitability of small and medium businesses.

Defining Good and How to Achieve it?

Defining Good and How to Achieve it?

The recently held Foundations and Frontiers FF24 conference, created by the Australian Constructors Association, provided an opportunity to shed some light on concerns about the long-term health and sustainability of the industry and align on changes that need to be made to improve the industry. I offered a thought starter which didn’t come up much in discussion (not intended to be a criticism of the forum – there was much worthy discussion during the day). I’d be most interested in your thoughts on this topic, particularly if you are one of my colleagues who are (or have been) employed by the public sector with knowledge of how the process works.

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PETER WILKINSON

Sydney, Australia

+61 (0) 418 636 545

peter@samwilkoadvisory.com

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