News: July 2010

"When circumstances change, so must the way we go about our business," said Paul Morrell, the government's chief construction adviser, in his keynote speech at the JCT Construction Industry Reception at the House of Commons this week. He said that the world has changed significantly recently – the environment has emerged as a key consideration, and the age of austerity is and will be upon the industry for a number of years to come.

Stressing that the industry has to respond to these changing circumstances, Morrell continued: "'Irrational exuberance' has been as much in evidence in the building programme as in so many aspects of recent history, and it is time to leave prodigality to the proverbs. This is true whether we are talking about cash or carbon – a new means of exchange that has to become as important as money. If cash is king, carbon must be its queen.

"Both in what and how we build there needs to be a new, self-questioning rigour. Certainly buildings need to be good. They must be fit for their purpose, durable and sustainable - and I hope there will always be room in the public programme for a degree of patronage, an acknowledgement that the impact of buildings on a neighbourhood is so great that they must both take from and give to their civic context. But beyond that point, the point at which buildings are 'good enough', the price of spending to build something still better is paid by those who get nothing at all.

"The challenge for the industry is therefore to define 'good enough'. This is absolutely not a defeatist call to dumb down. Instead, it is a confident plea to raise our game; to respond to the need to live within our means, utilising finite money and resources, with a new offer."

Paul Morrell went on to conclude that the key to success was having a good client, from increasing the level of standardisation throughout the industry, and ensuring payment down the entire supply chain.

Hosted by the Rt Hon Nick Raynsford MP, the reception was attended by MPs, peers and executives from the construction industry, with the aim of raising the industry's profile with the new government and Members of Parliament, as well as highlighting the role construction can play in the recovery, in the quality of life and in meeting sustainability targets.

The Joint Contracts Tribunal is a pivotal force within construction, with members from both the supply and demand sides and all sections of the industry: public and private employers, contractors, subcontractors and consultants. It is the only consensual contract drafting body in the industry. Today, four out of five of all building projects use JCT forms of contract.

Professor Peter Hibberd, JCT chairman, said: "JCT has served the construction industry for almost eighty years, and at no cost to government. The principles upon which JCT's service is based are as relevant today as they were when JCT was created - providing a focus for improvement through standardisation and setting standards.

"JCT has always responded to change - by improving standards and by reflecting new legislation or changing approaches. Recent changes have included sustainability guidance, new sustainability provisions and provisions for the use of project bank accounts within JCT contracts. The process of change will continue. Within this process JCT is in a unique position because its guidance and its standard forms of contract have the support and agreement of the industry.

"Paul Morrell's remarks are timely and certainly strike a chord. He has a difficult task tackling the problems within the remit of his current role. The construction industry has many voices but he will know that JCT through its cross industry representation will always be ready to help. We have a common objective to make the industry better not only by responding but by leading and by showing the vital contribution that construction can make to our lives."

Further information about JCT can be found on the website www.jctltd.co.uk