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Carillion collapse: what CM’s readers have to say

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  1. Why is it now that everyone start to come out to make comment about Carillon shortcomings. What happened to the brave men and women with guts to come out earlier rather than waiting for an inevitable catastrophe as this?
    I think that the UK has lost its edge in the international construction arena. It is a huge shame. The UK should be building and leading the world – especially the developing world.
    Kola Roberts, SME Director

  2. It is utterly absurd to argue that direct labour is better than outsourcing and vice versa. In the absence of close control either the workforce or the contractor runs riot doing pretty much what they want, how they want.

    I took over an estate of 300 public properties in 1979, where contractors had been unsupervised for five years. Some clever fellow in management services said it was only necessary to inspect one job in 10 because the cost of supervision exceeded the cost of the work. This gave the operatives as much as the contractors license to do whatever they wanted because there was a 90% chance of getting away with it. That was why repairs to flat roofs consisted of tipping bucket of bitumen in the general area spreading it with a yard brush and sending an invoice for £400 – in 1979.

    We managed to introduce drastic change within six months. I simply divided the authority into districts and gave property inspectors power to do whatever was necessary on their patch up to £1,500. Even before we had computers we monitored what was being done in each trade in each district and the inspectors knew they were being continually monitored.

    18 years later I was supervising the maintenance of social housing by direct labour and the work was truly the most appalling I have seen in my career. Nowhere else have I seen a 50 mm timber gatepost fixed to a wall with a 75 mm fastening. Thanks to strong unions, a complex disciplinary system and sympathetic politicians it was virtually impossible to sack an operative. One hero of labour and actually collected a total of seven final written warnings. There was a maximum bonus system which could be manipulated with ease allowing the operatives obtain (I have purposely not said earn) a good wage in just four hours a day.

    In another authority I actually calculated it would be possible preserve the jobs of the directly employed labour force while allowing them stay at home on basic pay. We could then employ tightly supervised contractors and still save the authority £250,000 pa. I was made redundant for pointing that out.

    So it is simply not an either or situation the answer is to ditch both left and right wing dogma and do what is necessary. The military say that no plan survives the first five minutes contact with the enemy and changing circumstances require the maximum flexibility. The answer has got to be not a one-size-fits-all management plan, but systems appropriate to the task and competent managers with the power change and adjust as necessary.

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