Making matters worse is the fact that some shortlists contain “an out-of-line bid” that comes in at a figure well below the rest.
It’s happening in 1-in-5 bids in some areas of work, he reports, and at a frequency of 1-in-10 in others.
Boot is philosophical about the situation. “People have the right to buy work by bidding too tightly,” he comments.
Henry Boot has a construction operation with an ВЈ80m-a-year turnover. It generated ВЈ2.5m by way of profit last year.
Key areas of operation were Decent Homes projects in Sheffield and Rotherham along with several prison projects.
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“It involves a little bit of civils, but mostly building,” says Boot.
“Out there it’s getting tougher all them time and the number of opportunities are falling.”
The demise of Wrekin Construction prompted the comment: “If a construction business is running well it should be cash positive. If a construction group is in-hock to the tune of £4m-£5m it must be a relatively unusual one.”
Jamie Boot confirmed that there are no £11m rubies tucked away in the company’s register of assets.
“The only ruby I’ve bought has been the occasional one for the missus,” he reports.
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