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YouGov: More than half of contractors could cut costs further

More than 53 per cent of construction firms responding to a survey carried out by YouGov feel they could achieve cost savings of 6 per cent or more.

The Is your Business Costing You report reveals many construction firms have done little so far to reduce their cost base.

A third of the 104 respondents have not renegotiated contract terms with suppliers since September 2008 when the economy fell into steep decline.

But 30 per cent said their organisations had not put in place any cost reduction programmes during the last six months since the start of the recession.

This included for main business expense items such as those covering property and premises, office and industrial supplies, car fleets, logistics, and managed services such as cleaning, catering, waste disposal and security.

Indeed only 32 per cent were either satisfied or very satisfied with their organisations’ drives to reduce such business expenditure.

Of the firms which had introduced a cost reduction programme for main areas of business expenditure, 77 per cent stated this was in the form of a review.

However, only 19 per cent said that this review had been done well.

The biggest barriers to reducing costs, as experienced by respondents, were lack of time (33 per cent) and complacency to change (22 per cent).