Connaught’s difficulties have highlighted what most of us who work in the social housing repairs sector are already aware of

One of the main reasons being suggested for the firm’s fall into administration is that it ran into serious difficulties after it emerged that a series of contracts were or would be loss making.

Social housing clients are tempted to accept (sometimes ridiculously) low tender prices for repairs and decent homes-type work, with no serious review of whether they are achievable in the long term. Indeed, some competitors have recently taken out injunctions on impending awards because of concerns over low pricing.

My work involves supporting subcontractors in these supply chains. Contractors still seek to secure their margins for the contract once it commences and this inevitably results in subcontractors being squeezed to take on work at significantly reduced rates, accompanied by a slow payment regime. This practice is well known but unsustainable and needs to be seriously addressed. 

MJ Brad, Commercial Response

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