Global disputes in construction still ‘sky high’ claims Knowles

Global construction disputes are still rife despite the rise of best value and partnering contracts, Knowles founder Roger Knowles claimed this week.

He said that while the firm had grown non-dispute related services in the UK, demand for contentious advice in the rest of the world remained sky high.

Knowles said: “To be honest we are still in contentious work internationally in a big way. Not many places have gone for best value yet. It’s on a lowest cost basis and contractors are still putting suicidal prices in for work.”

His comments followed the firm posting year-end results for the 12 months to 31 July, which saw turnover down £1m to £30.2m and pre-tax profits before exceptional items stand at £534,000. The firm’s statement said its UK division would focus most of its attentions on contentious work as the returns were higher than for procurement or contractual advice.

Knowles announced he would be stepping down as chairman of the listed firm, which he founded in 1973, in a year’s time. He will become president at the firm while John Lee will become non-executive chairman.

Knowles said he had decided to take a less hands on role at the firm in the last six months. He said: “I thought it was time for a change. I have been doing this for a long time. There will be fewer 55-hour weeks from now on.”

Not many places have gone for best value yet. It’s on a lowest cost basis and contractors are still putting suicidal prices in for work.

Roger Knowles, chairman, Knowles

Knowles was bullish about the firm’s prospects, despite the profits being hit by an exceptional charge of £493,000. Of this, £150,000 covered a severance package for former joint chief executive Michael Charlton while the rest covered restructuring the group’s Far East operation and redundancy costs.

Knowles said the exceptional charge would “sort out the corners” in the company and claimed the firm was looking to achieve “more consistency” in its service across the globe. He said: “We need to be more efficient in our working and selling.”

The firm, which employs 350 staff, claimed it had turned around its poor performing Asian, North American and Australian operations but has now changed its European division, with the Munich office being its only permanent one on the Continent in the long term.

• Knowles said the new institute for QSs he had set up, called the QSi, was now targeting students. He said: “We see big growth from the universities. We will let them in for free and once we get them in hopefully keep hold of them.”