Financial Times FT.com

Kier chief warns ‘two-tier’ contract system

By David Fickling

Published: September 18 2009 00:03 | Last updated: September 18 2009 00:03

Tightening public spending targets and the falling price of construction work are starting to put pressure on some agreements between contractors and public sector clients, according to John Dodds, Kier chief executive.

Framework agreements – relationships between clients and construction companies, under which numerous individual contracts can be tendered –are regarded by many construction companies as a refuge from the fierce competition starting to take hold in the broader sector.

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