LO3 Flashcards
(12 cards)
Why is the construction industry unique compared to other major sectors in the UK?
- Each project is unique, including design, location, and constraints.
- Temporary workforce teams for the project only.
- High fragmentation - many different disciplines involved.
- Work is done on-site, often outdoors - at the mercy of the weather.
- Strongly affected by interest rates, government policy, and economic cycles.
- Must comply with various rules: planning, building regs, health & safety, environmental law.
Why does the construction industry have a negative perception from some members of the public? Is this justified?
- Perceived as low-skilled/manual - misunderstanding technical and professional roles.
- Disruption from noise, dust, traffic from sites.
- High-profile failures such as Grenfell.
- Frequent delays and cost overruns damage trust.
- Environmental concerns - seen as high carbon emitter and waste producer.
Why is the construction industry not an attractive career choice for young people? What can we do to improve this?
- Negative perception
- Limited exposure from schools
- Solutions:
o Promote STEM and construction pathways in schools.
o Use social media to highlight modern, tech-driven roles.
o Increase apprenticeships and graduate schemes.
Describe the purpose of Mark Farmer’s ‘Modernise or Die’ report produced in 2016. What were the key issues / findings?
Warned of systemic decline in UK construction without urgent reform. Due to:
o Ageing workforce and skills shortages.
o Low productivity vs other sectors.
o Poor investment in innovation and research and development.
Recommendations:
o Embrace modern methods of construction.
o Improve on the training available.
o Improve industry image and career pathways.
Describe the issue of ‘fragmentation’ within the construction industry, and how the negative consequences of this phenomena could be mitigated.
Fragmentation = Industry made up of many small, disconnected firms.
Consequences:
o Poor communication and coordination.
o Blame culture, disputes, inefficiencies.
o Lack of standardisation and innovation.
Mitigation:
o Collaborative contracts such as NEC
o Digital platforms such as BIM
o Long-term partnerships and frameworks.
Why do large firms like Carillion and ISG collapse?
- Low-margin contracts to win work.
- Taking on too much risk from clients.
- Cash flow issues with delayed payments and overreliance on subcontractors.
- Poor oversight and financial controls.
- Rapid growth without sustainable strategy.
- External factors such as legislation and politics. E.g. COVID and Brexit
Mark Farmer criticised the UK construction industry for being slow to adapt to advancements in technology. Can you give some examples of this?
BIM was mandated on public projects (level 2 by 2016) but uptake is still inconsistent.
Limited use of robotics, drones and 3D printing.
Many firms still rely on paper-based processes. Reasons:
o Cost of implementation.
o Lack of digital skills.
o Resistance to change.
The UK construction industry lacks a culture of collaboration and improvement according to Farmer. Why do you think this is the case?
- Focus on blame and transferring the risks to other parties.
- Projects treated as one-offs, not long-term relationships - Not worth the investment to improve.
- Siloed working - Designers, contractors, and suppliers rarely integrated.
- Competitive tendering discourages openness.
- Lessons not shared across projects.
How can modular construction contribute to a more efficient construction industry?
- Speed: Off-site manufacturing reduces on-site time.
- Quality: Controlled factory conditions improve consistency.
- Safety: Less time on-site reduces accidents.
- Sustainability: Less waste, better material use.
- Labour: Reduces reliance on scarce site labour.
What factors are preventing wholesale uptake of modern methods of construction (MMC)?
- High upfront costs.
- Planning challenges as local authorities are unfamiliar with MMC.
- Skills gap for digital and manufacturing skills.
- Client preference for traditional methods.
Large scale infrastructure projects always seem to go over budget. Why do you think this is?
- Underestimation - Optimism bias in early costings.
- Scope creep - Changes during design and construction.
- Technical and logistical challenges.
- Unrealistic deadlines or budgets.
- Poor risk management.
Why is a high performing construction industry so critical to a country’s economic development?
- Enables growth, such as transport, housing, energy.
- Job creation - 9% of UK workforce.
- Attracts domestic and foreign investment.
- Leads to innovation and efficiencies
