MODERNISING CONSTRUCTION (PAC 00-01/166)
At the Committee's hearing on 14 February I
made reference Q50 to the Construction Industry's level of margin
and its ability to invest in training and R&D. On subsequent
rereading of the 1998 Egan ReportRethinking Construction,
I realise that no specific level of margin is mentioned. However
page 10, para 4 of the Egan Report does include the following
statement about the Construction Industry:
"It has a low and unreliable rate of profitability.
Margins are characteristically very low. The view of the Task
Force is that these are too low to sustain healthy development
and we wish to see those companies who serve their clients well
making better returns."
I believe this supports the point I was making
to the Committee.
I hope the Committee will accept my apologies
for not making this clear at the hearing.
Office of Government Commerce
19 March 2001