Horsemeat and construction

The recent horse meat scandal has thrown up several parallels also affecting the construction industry. The underlying cause of the scandal seems to be companies and consumers putting the emphasis on lower and lower prices.

The result being that the supply chain margins have been drastically cut leading to unregulated produce sneaking into the food chain unnoticed. Whilst unacceptable, the risk to health seems to be minimal and thankfully, due to increased dna testing can now be properly controlled.

The parallels to Construction seem to be ominous. Since the economic downturn, the downward pressure on prices has led to increased competition for tenders, and squeezed margins across the board. Health and safety is the bedrock of any site operation and the consequence of any lapses or oversight could be catastrophic. The risk of this happening is surely higher if operating margins are small or non existent!.

The horse meat scandal should be a wake up call both to contractors and clients to ensure that quality and standards do not fall to the extent that health and safety is compromised.