Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Zero profit fears

Suppliers and contractors in the water sector fear that clients are seeking to squeeze profit margins to 0% in new contracts under negotiation for 2005-2010.

'Some companies, such as Southern Water, are asking their contractors to make nothing by insisting that profit and overheads combined are less than 3%, ' said British Water director Paul Mullord.

Southern Water refused to comment as procurement is still under way and contracts will not be awarded until November.

Mullord said many main contractors are subjecting subbies to equally harsh terms.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.