Government innovation tsar says contractors should be making 5% margins

By Jordan Marshall2019-06-07T05:00:00

‘Half a percent is not a business model that is investable’, says head of new Construction Innovation Hub

The man the government has charged with transforming the construction sector says contractors should be making margins of 5% if they are to break out of the boom and bust nature of business which has dogged the industry for years.

Keith Waller’s comments come in the wake of a grim 18 months for construction which began with Carillion’s collapse last January and has included Interserve falling into administration while ongoing financial problems continue to dog the country’s second biggest contractor, Kier.

Speaking to Building, Keith Waller, who is heading the government-backed Construction Innovation Hub, said margins of 5% should be in reach of companies collectively turning over billions of pounds.

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