While the budget announcement brings positive news for the construction sector, NFRC CEO James Talman has emphasised the importance of responsible procurement to ensure the successful delivery of projects. He highlighted the recent collapse of ISG, a major contractor, as a stark reminder of the consequences of irresponsible procurement.
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"The government must be more circumspect in its procurement practices," Talman said. Adding that the new Procurement Act 2023 provides an opportunity to implement robust procurement processes and avoid similar failures in the future.
NFRC also called for long-term planning and cross-party agreement on infrastructure policy to ensure the stability of the construction pipeline. The industry body expressed concern about the impact of increased National Insurance on SMEs and the need for further investment in skills and training.
Regarding housing, NFRC welcomed the additional funding for the Affordable Homes Programme but stressed the importance of planning reform. The organisation urged the government to invest in training and development for planning professionals to address the current shortage and expedite the approval process.
While the budget presents opportunities for the construction industry, NFRC believes that responsible procurement, long-term planning, and investment in skills will be crucial to realising the government's ambitious goals.
