Nine out of 10 sites are delayed by the apparent inability of gas, electricity and water suppliers to do what they’re in business to. They can take six months to produce a simple quote. They can charge you £4,000 before they begin to think about putting in a water mains.
It’s common for companies to ignore phone calls and virtually unheard of for them to issue a programme of works. The result is that 40% of projects that require help from a utility take a hit – while prices continue to rise, and so do the suppliers’ profits.
So is it surprising that frustration in the industry is growing? A survey of members of the National Federation of Builders, the Construction Confederation and the Major Contractors Group has shown that the situation is bad and getting worse for all utility suppliers (apart from telecoms) and, gallingly, there’s almost nothing that companies can do about it. So far the regulators have done little to tackle the issue. But with the housing programme now under threat, surely some action has to be taken.
Both Ofwat and Ofgem, the regulators of water and energy companies, are reviewing the performance of these industries. The obvious move is to expose utilities to competition, as was done to good effect with the telecoms industry. But that is, at best, a medium-term solution. In the meantime the regulators must introduce measures to force the industry to listen to its customers. The NFB suggests the use of dedicated teams that deal with cases from start to finish, the replacement of “voluntary codes” with mandatory, enforceable service-level agreements and, above all, the sort of fines for poor performance that are levied on train companies. That would at least be a start …
Vroom, vroom
Whether your firm’s as sleek as a Maserati, as iconic as a Mustang or as accommodating as a VW Camper, the chances are you’re cruising along in top gear. The 2006 survey of the top 250 consultants finds they’re employing 7,000 more people and earning £500m more in fees than last year. But where do we go from here? The forecasts point to growth of 6-8% over the next three years – if they can recruit the talent to do the work. A big “if”, given that two-thirds of firms say skills shortages are holding them back. In the past they’ve turned to general purpose graduates and searched abroad. Let’s hope they can continue to do so. Otherwise, they’ll be forced to apply the brakes.
Postscript
Denise Chevin, editor
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