The Construction Leadership Council (CLC) has decided to halt its ambitious project aimed at eliminating retentions in the construction sector due to poor data sharing.
- The initiative intended to create a ‘quality metric’ using anonymous data to prevent project defects, but faced a lack of industry cooperation.
- Despite past successes in data collection, this project’s low participation rates hindered its progress and ultimate conclusion.
- Efforts to measure and improve the Error Frequency Rate (EFR) were stymied by incomplete data submissions and survey responses.
- The adversarial nature of construction contracts poses a significant barrier to voluntary information sharing.
The Construction Leadership Council (CLC) has made the difficult decision to terminate its project focusing on eliminating retentions in the construction industry due to inadequate data sharing across the sector. This cessation underscores significant challenges in achieving widespread cooperation for data-driven improvements.
Initially announced in October 2023, the project was a collaborative effort involving Actuate UK, Cranfield University, and the Get It Right Initiative. The goal was to develop a ‘quality metric’ utilising anonymous project data to identify potential defects early. Unfortunately, the initiative struggled with engagement from the construction industry.
The project sought to improve upon previous successful data-gathering initiatives that addressed late payment and health and safety issues. These past initiatives produced meaningful results, influencing industry practices. However, the current pilot faced a ‘low response rate,’ leading to its inability to advance beyond its initial stages.
Despite substantial efforts to solicit participation, there was a palpable hesitance within the industry to share project data. Such data could measure and evaluate the Error Frequency Rate (EFR) metric, providing valuable insights for refining construction quality. Anonymised data was managed by the Centre for Design Engineering at Cranfield University, ensuring confidentiality.
The findings noted that unresolved defects increase with the complexity and value of a project, with a notable rise in the new public housing and private industrial sectors. However, the pilot was unable to offer cost-effective strategies to mitigate the EFR due to insufficient and incomplete responses gathered from the online survey.
The adversarial nature of construction contracts underpins the industry’s reluctance. Companies within the supply chain question how shared information might be used adversely, fearing repercussions such as claims or disputes. Despite widespread acknowledgment of the potential benefits, this reticence impeded an industry-wide approach to performance enhancement.
Mark Reynolds, co-chair of the CLC, has expressed the necessity for government intervention to abolish retentions, given the current lack of industry support. Cash retentions, accounting for around 5 per cent of contract value within the supply chain, exacerbate cash flow problems and contribute to increasing insolvency rates.
In the face of industry resistance to data sharing, the CLC’s initiative to reform retentions will not proceed, highlighting challenges in collaborative progress.
