The decision by three top ten contractors to walk away from major projects in the last week is an overdue wake up call for the industry’s big clients.
For too long client cost advisers have got away with strong-arming contractors into accepting unrealistic target prices in lump sum contracts.
But with rampant cost inflation and a scarcity of good subcontractors around in London, the brutal fact is main contractors have no choice but to take a stand on price.
Bouygues, Kier and Morgan Sindall have left jobs after bearing the cost of bidding and mobilising teams for a morsel of enabling works.
