Let’s get governance right this year

As far as the CIOB goes, we have the new governance arrangements coming into place which, from what we are being told, is a model of good practice.

We will also be implementing some new strategies, making the CIOB more accessible while reinforcing the high standards of knowledge and competence required to be a member. We need to ensure that our routes to membership are easy to understand and that anything we ask people to do is seen clearly as a progression.

As far as the industry is concerned we will have the initial outcome from the OFT published. I think this will have a significant impact on the industry and has the potential to cause serious divisions between the various factions.

For the framework agreement sceptics, the outcome could form the basis that such agreements are anti-competitive and should be abandoned. For others, the competitive advantage of not being named a transgressor might be too much to resist, particularly when public sector work is on offer. So it is entirely possible that the fairly weak glue that seems to be holding the ‘industry’ together might fail.

At the heart of this is the fact that there is no coherent leadership and in many respects, the demise of the family dynasties is responsible for this.

Families had the time and opportunity to reinvest their time back into an industry that had done well for them. But as they have been sold on and absorbed into plcs or become a relatively small part of much bigger groups, the scope for such involvement has evaporated. Instead we have the relatively transient professionals who might be promoting construction today, but doing the motor industry tomorrow if the price is right.

The biggest benefactors in 2008 will of course be the lawyers – again.

In 2008 there will be a rush to become Enterprise Act compliant to ensure that boards minimise the risk of being caught by the type of practices many thought did not still happen.

At a recent workshop, the OFT said it was investigating work worth around £3bn in England alone. It does not take a rocket scientist to work out that there might be more shocks in store if the investigation was extended to Scotland and Wales and civil engineering.

Let’s hope that the way the industry deals with this the first time round provides sufficient evidence that another dose of some pretty unpalatable medicine is not required.

Chris Blythe is chief executive of the CIOB