The UK’s largest construction firms are selecting subcontractors on the basis of their green credentials, an industry research report has revealed.
In a shrinking market where competition is fierce, a survey conducted by NetRegs.gov.uk shows that 95 per cent of large firms will give preference to subcontractors who can show a thorough eco approach.
The survey shows that during a time of oversupply, large firms with a turnover in excess of £10 million will increasingly use a subcontractor’s environmental credentials as a key factor when deciding how to award contracts.
The results also highlighted that 87 percent of large construction firms have more confidence in subcontractors with proven green credentials: 76 per cent of them citing a reduced risk of prosecution.
In addition, over half of respondents (56 per cent) think green policies will save subcontractors money – a welcome bonus in these tough economic times.
A staggering 93 per cent of construction industry bosses also think that proof of environmental responsibility will move up their firm’s agenda over the next two years.
In response NetRegs.gov.uk, the free environmental legislation guidance website, has launched a campaign to help smaller construction firms understand the importance of environmental compliance, and to highlight the opportunities that going green can offer.
It has also developed an 8-point checklist to give subcontractors the best possible chance of winning business in a competitive tender.
Stuart Rowe, contracts executive at Ellmer Construction commented: "As a large construction firm, we have our own set of robust green policies in place and provide environmental training for workers. However, it is essential for subcontractors to understand the value of having their own environmental policies rather than relying on the principal contractor.
“This gives them an added advantage in a competitive tender and saves them money. With environmental issues becoming ever more important we would encourage all subcontractors to harness the power of going green.”
Richard Martin, programme manager at NetRegs.gov.uk, added: “The research results are very encouraging in demonstrating to smaller construction firms how they can win business during the downturn. The message is, if they want to differentiate themselves from the competition and be selected in a shrinking market, then they must take their environmental responsibilities seriously and be able to demonstrate the measures they are taking.”
When asked who should be responsible for making environmental improvements in construction businesses, alarmingly only 13 per cent of respondents felt that the firms themselves should be responsible. Most laid responsibility at the door of central Government (30 per cent) or government organisations (19 per cent).
Richard Martin continued: “Government is determined to improve the construction industry’s environmental performance by introducing sensible legislation. However, ultimately responsibility lies with the individuals in firms working on construction projects, and they cannot pass the buck.”
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