Griffiths & Armour Europe CEO, Graeme Tinney, was delighted to join a panel discussion at this year’s Association of Consulting Engineers of Ireland (ACEI) conference. The panel, involving ACEI President Tim Murnane, Business Consultant Paul Davis and Professor Aoife Ahern of University College Dublin considered the question of how Engineering firms can realise the value of their work and what needs to happen to attract, develop and retain people from all parts of society.
Graeme agreed with Aoife Ahern that the Engineering profession has struggled with this issue for a very long time. He recalled the words of the late Derrick Edge, a great supporter of the profession, when he delivered the opening line of his presidential address back in 2005:
‘It’s the best of times, it’s the worst of times’
Derrick was referring to the fact that the construction sector had never been busier and yet Engineers were struggling to get recognition of the value they were delivering; and they were certainly struggling to secure a reasonable fee.
A lot has happened since 2005. The introduction of the Building Control (Amendment) Regulations (BCAR) was highlighted as a positive step in recognising the role that Engineers and other competent professionals play in delivering better and safer buildings. The problem, however, is that 20 years on from Derrick’s comments, that value is still not being properly rewarded.
Graeme mentioned our recent publication, ‘Constructing Change – Evolving the status quo or time to re-set’, which draws upon a series of round-table events with construction professionals and other industry stakeholders across the UK and Ireland. Our intention was to capture current sentiment, and it is clear that people are not feeling valued – they are feeling beaten up on fees, on contract terms and they still talk about certain employers who appoint professionals, not on the basis of skill, competence or the value they bring to a project, but on the basis of:
- How low they’re prepared to go on their fee; and
- How much liability they’re prepared to accept
The classic risk -v- reward balance that we continually talk about.
Added to that, you have a legal system that is absolutely killing firms. The application of Joint & Several liability, lengthy litigation, no pre-action protocols; all feeding into our world and the continued lack of certainty and stability within the Professional Indemnity insurance market.
But in those round-tables, Graeme explained that it wasn’t just employers, solicitors or the legal landscape coming in for criticism. One of the comments to come from an Engineering firm was:
‘I think this industry has cut its own throat to be honest. We’re charging fees that are way below our worth’
This was one of several clear messages that the profession needs to be much stronger in recognising and realising its own value.
The problem is that the risk -v- reward imbalance impacts on everything. It certainly impacts on the ability of the profession to attract the next generation. Echoing the views of ACEI President, Tim Murnane, Graeme talked about the need for young people to know that the fundamentals are right:
- That there is a future for them which is on a par with other professions;
- That there will be stability in the market; and
- They will be recognised and rewarded for the value they are delivering.
But, if you can get those fundamentals right, then Graeme feels the profession has an amazing story to tell. In what other sectors are you going to get the opportunity to have such an impact on some of society’s most pressing challenges and to leave such a tangible legacy; something else Graeme was sure Derrick Edge would have been quick to point out.
And somewhere in there lies the answer. Engineers need to be stronger in realising their own value and they need to share the positive stories about the role the profession will play in tackling future challenges.
The risk -v- reward imbalance
On addressing the risk -v- reward imbalance, Graeme acknowledged that it is not easy. He echoed the comments of Business Consultant Paul Davis about the need for firms to be more confident and to take a tougher line on fees and contract terms. But a lot of the issues facing the profession are systemic and they require a complete change in mindset. So, it’s not just about individual firms – it’s about the collective.
That, he said, is what makes the work of ACEI (and others such as RIAI) so important and it is why we continue to support that work. He talked about the:
- Meetings that have taken place with Government over the past year;
- Real and meaningful engagement with State and Semi-state bodies;
- Submissions on procurement and insurance reform;
- Ongoing guidance and advice to the profession.
All of that is about trying to ensure that the profession can realise its true value and secure the future of the local consultancy sector.
There are going to be further headwinds; the impact of climate change, developments in technology, the growth of GenAI, the need for greater collaboration etc. It is going to need an industry response and most likely a complete rethink in how we look to manage risk within construction.
The good news is that there does seem to be a growing realisation that current attitudes and approaches to managing risk are not serving anyone’s interests and will not support the way the sector will need to work into the future. Hopefully that creates an environment that will support the transition to a fairer model that will also position Engineering as an attractive and rewarding career for the next generation.
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