Report finds majors shunning traditional work

Contractors are boosting workloads with PFI and partnering deals, according to a survey of 75 contractors commissioned by Building. Non-traditional contracting has increased for more than two in three firms that responded to the research, which was carried out by Hewes Associates.

John Morgan, chairman of Morgan Sindall, whose non-traditional contracting has risen to 20% of turnover said it was an exciting time for the industry. He said: "We've been partnering on many smaller contracts which have been lumped together in framework agreements. Over half of our work comes from projects where price has not been the only factor in our winning it."

Majors, including Carillion and Mowlem, have reduced their traditional contracting workloads, almost certainly reflecting pressure from the City over margins.

MJ Gleeson and Shepherd Construction also saw the portion of PFI and partnering work rise significantly as a percentage of turnover. The minority of firms moving in the opposite direction include the more traditional Sir Robert McAlpine and HBG.