The cost of compromise - Maris

A Paradigm Shift In Procurement

5th January, 2025

If you are reading this, you are likely standing at a crossroads regarding a major capital investment.

For decades, the concept of construction procurement was static. It was viewed as a purely administrative exercise. You hired an architect to draw a picture, you sent it to market, you picked the cheapest builder and you hoped for the best.

 

That era is over.

 

Today, procurement is not an administrative function; it is a catalyst for business protection. Following the seismic economic shifts of the last few years, the method you choose to procure your workplace has moved from the periphery of operational concern to the very centre of strategic planning. The question is no longer simply “who is building our office?” but “how are we commercially protecting our capital?”

 

At Maris, we have spent 49 years designing and delivering workplaces. We have witnessed firsthand the evolution from the fragmented, adversarial contracts of the 1980s to the integrated, tech-enabled delivery models of today. But never have we seen a shift in the market as profound as the one occurring right now.

THE ECONOMIC REALITY

This guide is not just about “soft” metrics like culture. It is about hard commercial reality. In a volatile economic climate, the pressure to justify capital expenditure is intense. The construction sector is highly volatile. According to the Insolvency Service, the construction industry consistently has the highest number of insolvencies of any sector in the UK, accounting for nearly 18% of all business failures in 2023. If your chosen contractor goes bust halfway through your project, you are left with an unfinished site, voided warranties and a massive legal headache.

Furthermore, research by McKinsey on global construction projects reveals that large endeavours typically take 20% longer to finish than scheduled and are regularly up to 80% over budget. The ROI of a poorly procured project is therefore deeply negative.

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