The construction industry has long been known for its reliance on established networks, where projects are often secured through word-of-mouth recommendations and introductions within closed circles. While this approach has its merits, it has also created an environment that can be exclusive and resistant to change. In this blog, we delve into how this practice has shaped the industry, the limitations it imposes on growth, and why it's time to open the doors to new opportunities.
The Closed Circle of the Construction Industry
For decades, the construction industry has operated within what can be described as a "closed circle." This term refers to the network of established relationships between contractors, subcontractors, suppliers and clients who often work together on multiple projects. Trust and reliability are built over time, leading to repeat business and a preference for familiar faces when awarding contracts. According to a report by the Chartered Institute of Building (CIOB), nearly 60% of construction projects in the UK are awarded based on existing relationships rather than open tender processes, despite this report and survey being a few years old now, we find that nothing much has changed.
It's true that this method of securing work has historically served the industry well, ensuring that projects are completed by experienced and trusted professionals. As can be seen when reviewing our own portfolio and our socials, we too fall into that familiar approach to generating work. Our Testimonials and Case Studies featuring prominently in the content we publish.
On reflection, however, it presents significant barriers to entry for newcomers and limits the industry's potential to attract fresh talent and investment and by extension limits innovation and progression.
We aim to stay true the to strong bonds and tested relationships we have forged with our valued partners, but the chance to lead innovation and expand our industry to new talent and new ideas is at the very heart of who we are and what we do. And so our question to you is this, are you ready to branch out to other partners and breathe some life into your functional but "all so familiar" projects?
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