Shock resignation of chief executive casts shadow over future of pan-industry organisation.
Construction Confederation chief executive Jennie Price has stunned the industry by resigning.

The shock move has reignited speculation that the confederation is on the brink of collapse after a series of withdrawals earlier in the year and the dissatisfaction of small firms with the perceived domination of major contractors.

The Major Contractors Group, the Civil Engineering Contractors Association and the National Federation of Builders all released statements reiterating their continued support for the confederation.

However, highly placed sources within the NFB confirmed that the group has held a number of discussions about withdrawing from the confederation.

The source said: “Jennie has discovered that it’s impossible to run a pan-industry board where the big players make a living out of screwing the smaller ones. It’s something our members are increasingly aware of.”

It is understood that leading civils contractors are considering withdrawal because of a failure to be fully consulted when the confederation agreed this year’s pay and conditions deal with unions.

One said: “The confederation clearly has a problem. It has been unable to influence government on the VAT and CIS [tax scheme] issues. Many people who pay into its coffers are asking what it is we are paying them for. The deal they agreed with unions is a joke that we’re paying for.”

The House Builders’ Federation has already announced that it is to vote on withdrawal from the confederation after housebuilders felt their interests were not being represented.

The Federation of Building Subcontractors withdrew in June.

Price, who is to become chief executive of the Waste and Resources Action Programme, a new quango that promotes recycling, denied she was leaving because of the confederation’s internal problems.

She said she was sorry to be leaving the post but said her new job would enable her to move nearer to her parents in the Midlands.

“I am very lucky to have found another demanding job which will enable me to build upon my experience of working with both government and industry,” she said.

Construction Confederation chairman Peter Andrews said: “We are deeply disappointed that Jennie has decided to leave her post so soon. There is no doubt she will be missed but we have an excellent management team within the confederation and good support from our members.”

Tony Maynard, chief executive of the NFB, added: “Our strategy is to strengthen our national influence and we could not deliver this vision without the power and clout of the Construction Confederation.”

Price took up the post in August 1999 after three years as director of the Major Contractors Group.

A leaving date and a successor will be announced shortly.