Let’s be honest, the construction industry hasn’t been known for its collaborative working practices. In part this is because of strict rules around project procurement, but also because margins are tightly squeezed and everyone is under pressure to meet squeezed budgets.
So it could be easy to assume that the recent challenging trading conditions of the past four years could have resulted in even less cooperation. However, it seems that tough trading conditions have encouraged greater collaboration along the supply chain.
As the recent BESA Top 30 Contractors report highlighted, research from consultant RLB found that more than half of contractors (54%) had seen more collaborative practices in procurement, while 35% of contractors said clients were more willing to share risk. This also included the increased use of project bank accounts, with 16% of contractors reporting their increased use as clients seek to protect themselves from market volatility.
Our training, events and document library are about sharing information and knowledge along the supply chain
Imma Boada National M&E Manager
A plan for carbon
There are several reasons behind this welcome trend. One of the most important is the push to reduce carbon in the built environment. The application of innovative technologies, the need to decarbonise heating systems and to cut embodied and operational carbon all require close cooperation along the supply chain.
This movement is impacting M&E contractors, who are increasingly being asked to account for their contribution to the carbon footprint of each project. This can include producing their own carbon reduction plans, to be included in the bidding process for both public and private sector projects.
But carbon reduction is not the only reason the industry is working more collaboratively across the supply chain. For example, in July 2024, CIBSE (the Chartered Institution of Building Services Engineers) and BESA (the Building Engineering Services Association) announced that they would be expanding their working partnership.
This closer integration of their work is driven by issues such as building safety and occupant wellness (as well as decarbonisation). As BESA chief executive Davide Frise said: “The sheer scale of the technical, legislative, and recruitment challenges now facing the industry calls for a properly concerted and joined up approach on behalf of the whole sector.”
Constantly adding value
The need for closer working extends to manufacturers too. At Mitsubishi Electric, we strive to be more than simply a product supplier. Our training programmes, live events and information library are about sharing information and knowledge along the supply chain. This includes joint initiatives with BESA on indoor air quality, and with the British Retail Association on reducing carbon in retail buildings. We’re also working with the UK Green Building Council to tackle the enormous challenge of retrofitting existing buildings for the low-carbon future.
Mitsubishi Electric is also focused on helping our installer partners engage with the big issues in our sector. For example, last year we launched our Committed Carbon Reduction Partners programme (CCRP) for contractors to help them manage their business carbon emissions and actively engage with carbon reduction.
Learn more about the CCRP and find out how it can help you become more carbon-aware and ready to engage with clients on this crucial topic.
As a manufacturer, Mitsubishi Electric invests significantly in developing new products to meet the needs of our customers today and for the future. Equally important is that the professionals who design our systems, install and operate them have the insights they need to make the most of our technology.
We know that supporting professionals along the supply chain is vital. If you’d like to learn more about how Mitsubishi Electric can help you tackle the challenges in your latest project, contact our team of experts and we’ll be happy to work with you.
Imma Boada is National M&E Manager
