The construction industry is at a critical juncture. Traditional methods continue to deliver traditional results, leading to KMPG reporting up to 69% of projects failing on original budget or schedule.
Despite this, outdated procurement models persist, prioritising passing risk down onto the supply chain over collaboration and project outcomes. The industry has reached a crossroads: either accept mediocrity or drive genuine transformation. We are committed to leading this change, breaking down barriers, and driving project success through true collaboration.
Why the industry must change
Construction remains one of the least digitalised industries, still relying on outdated practices. If you look at photographs from the 1930s, the image of construction, cranes, steelwork, and concrete blocks, remains largely unchanged. The industry’s slow evolution has led to stagnation, a widening skills gap, and an outdated perception of construction as a rigid, male-dominated field.
The “modernise or die” warning from Mark Farmer’s 2016 Review remains more relevant than ever. Procurement models continue to operate on a ‘design, bid, tender’ cycle, burdening contractors with excessive risk while limiting room for innovation. This creates a destructive loop: the industry demands efficiency and speed but refuses to invest in the methods required to achieve it.
Breaking free from outdated procurement models
At the root of the problem is procurement. Too often, clients delegate project management to advisors, who then lead them into a traditional tendering process that pits contractors against each other on cost, shifting all risk onto the supply chain. The result is a lack of transparency, minimal collaboration, and an adversarial environment where problem-solving takes a back seat.
Instead of passing risk down the chain, clients must be in a better position to understand risk and, at times, take ownership of it. When risk is fairly distributed and clearly understood from the outset, projects become more predictable and successful. This leads us to a more collaborative approach, encouraging trust and enabling contractors to focus on delivering quality work rather than constantly fighting to manage risk in order to maintain minimal profit margins.
How Wade drives true collaboration
We challenge the status quo by creating environments where collaboration, shared responsibility, and innovation thrive. Our approach is built on three key principles:
1. Influence projects through early stakeholder engagement
Bringing all stakeholders into the conversation from day one ensures alignment on scope, risks, and objectives before work even begins. Our experience in highly regulated sectors like pharmaceuticals and healthcare proves that proactive engagement prevents costly delays and disputes down the line.
2. Challenging traditional procurement
The traditional model forces contractors into a cycle of bidding, squeezing margins, and absorbing risk. We advocate for trust-based partnerships that prioritise long-term value over lowest-cost bidding. By engaging supply partners early and eliminating unnecessary and often duplicated effort, we improve efficiency and ensure project predictability.
3. Embracing modern methods of construction (MMC) and digital innovation
The industry must move beyond outdated techniques. A McKinsey report found that 65% of UK construction firms plan to increase their use of MMC to improve efficiency and sustainability. However, without fundamental changes to procurement and a focus on key project outcomes, these advancements will remain out of reach for many firms.
The consequences of inaction
Poor procurement models not only stifle innovation but also contribute to an adversarial work environment. Contractors are penalised through liquidated damages and withheld payments, creating an “us vs them” mentality rather than fostering collaboration. When risk is unfairly loaded onto contractors, projects suffer. Margins are squeezed, delays become inevitable through change, and trust is eroded.
It’s time to reject outdated procurement models and embrace transparency, collaboration, and innovation. Clients must gain a better understanding of risk management and stop washing their hands of risk and instead engage with suppliers in a meaningful, solutions-driven way. We need procurement processes that reward efficiency, expertise, and problem-solving, not just the lowest bid.
Conclusion
The industry cannot afford to continue down the same path. We must move away from adversarial relationships and towards a truer, more transparent industry focusing on project outcomes through collaboration and mutual trust. That means breaking free from outdated procurement models, investing in digital transformation, and adopting MMC at scale.
At Wade, we are committed to leading transformation in the construction industry. We accelerate delivery and eliminate uncertainty from construction projects. Experience the difference of working with a team dedicated to transforming the construction sector. Get in touch and let’s collaborate to achieve outstanding results with efficiency and sustainability at the core.
Daniel Wade, Wade Construction Management Consultants
www.wadecmc.com