Procurement Practices Under the Spotlight in New FIS Report

Our new report Procurement in the Finishes, Fit-Out and Interiors Sector, aims to better understand how procurement practices are affecting the £10 billion fit-out industry and most importantly, how they can be improved.

Last year, the FIS raised concerns that the push for modern methods of construction was being undermined by lack of focus on modern methods of procurement. To better understand the evolution of procurement practices, the organisation commissioned Professor Stuart Green of the University of Reading to explore procurement practices in the UK fit-out sector.

This result is a fascinating new report that benchmarks current practices from those contractors directly involved and explores how procurement impacts effective delivery. Through better understanding of the challenges facing the industry, the sector can deliver better value and improve supply chain relationships.

Laura Pardoe, Director at Barbour ABI comments:

“Connecting with people working directly in the field helps understand the real issues they are dealing with daily. This is critical to being able to decipher what needs improving. It has been a pleasure to support FIS in reaching out to people across their sector to canvass views and gather thoughts and experiences. The objective perspective we can bring as an expert researcher provides robustness to our understanding across the array of issues uncovered.”

This new report is based on both a questionnaire conducted online during July and August 2022 that returned 269 responses with 100% quality rating on results and then supplemented with 20 in-depth interviews with selected practitioners representing contractors operating at all tiers of the supply chain. The research raised serious questions about time allocation in procurement and tendering processes, and worryingly how risks are routinely pushed down the supply chain. It furnishes the ongoing debate with concrete data and provides a voice to those who work in the fit-out sector.

Professor Stuart Green, School of Construction Management and Engineering at the University of Reading said:

“I have been hugely impressed with the leading-edge firms in the fit-out and interiors sector. They are crucially focused on delivering high-quality work to demanding deadlines. Such firms act as exemplars for collaborative working at its very best.

“But many firms within the sector don’t get the chance to work collaboratively. This is especially true of the smaller firms who act as subcontractors. Procurement practices are too often focused on low-cost tendering with little consideration of other factors.  Subcontractors are further obliged to accept highly onerous conditions of contract which undermine trust from the outset. The smaller firms are frequently pressurised to reduce their tender price retrospectively and to offer discounts in return for prompt payment. It seems that old-fashioned subbie bashing is alive and well in the fit-out sector. This cannot be the basis upon which to sustain a modern industry.”

To conclude, FIS Chief Executive Iain Mcllwee stated:

“The regulatory, environmental, commercial and moral drivers for change have never been stronger and this research-based report has given a voice to all in the supply chain and is the start of a practical call to action for positive change.”

Download the report here 

Click here to view the Procurement Practices in the UK Fit-Out Sector video with thoughts directly from Professor Stuart Green and Iain Mcllwee