Engineering firms rapped

Press, 26 November 1982, Page 26

Engineering firms rapped

PA Wellington Local heavy- engineering firms in Wellington have been criticised in a largely critical review' of their attempts to win contracts on “think - big” energy projects. The study, by a Massey University market researcher, Mr P. J. Gendall, said that there were many things the local industry did well and many individual examples of excellence.

“However, there are some important areas in which many local fabricators perform poorly and in which they could do better,” said the study for the Heavy Engineering Research Association.

With engineers mounting pressure for more local spinoff from the projects, the study said that clients had continually criticised the lack of marketing by heavy engineers.

“This is best expressed in

the comment — in NewZealand the attitude is that the client is here to serve the contractor,” said Mr Gendall. “Failure to meet delivery deadlines was the most widespread criticism and, what is worse, there was a consensus among clients that local firms were unconcerned about their chronic failure to deliver on time.

“In some cases slippage is caused by factors beyond control — industrial problems, material delays, and such — but in many instances late deliveries were considered the result of bad planning, bad management, or bad scheduling."' The study suggested that local engineers should exploit their advantages of closeness to the projects, their local knowledge, and capacity for innovation. “Without protection, New Zealand heavy engineers could rarely compete with prices overseas, and even with protection local fabrica-

tors are frequently more expensive than their foreign competitors. “Tenders are frequently incomplete and inadequate, and some firms are bidding for project work apparently unaware of their contractual responsibilities. “Quality-control requirements cannot be ignored and with a formal Q.A. system, chances of successfully bidding for project work are becoming increasingly remote,” the study said.

Heavy engineering was also still plagued by industrial disputes on Wellington’s B.N.Z. building, and the “avoid steel, avoid trouble” catchphrase was the local industry’s main image problem.

“This is unfortunate because most projects involving boilermakers have been free of strikes, but until the image of structural steel is improved, the adage will continue to plague,” said Mr Gendall.