Carillion CE to head Construction Council

Carillion chief executive John McDonough will start work as chairman of the Construction Council this October.

Carillion chief executive John McDonough will start work as chairman of the Construction Council this October.

Forming under the wing of the CBI, the newly arranged Construction Council will be able to lobby the government more effectively and benefit from the recognised reputation of the CBI.

Containing executives from the contracting, house building, engineering and materials sectors, the new Construction Council has caused a shake up of current organisations, and will mean the Major Contractors Group (MCG) and National Contractors Federation (NCF) will be disbanded.

It is hoped the council will be able to deliver a more decisive message, taken from a wider range of viewpoints.

Entry to the council for instance costs just £15,000, compared to the £35,000 requested by the MCG, and will be open to a wider range of companies, including UK arms of foreign businesses.

The decision comes at a time when executives in the industry are under several pressures to maintain profit margins in the face of rising material costs and lowering demand for new houses.

The industry has so far this year announced 4,000 job cuts, and the economy shows little sign of improving in the near future, with the prospect of harder times to come.