Tuesday, May 14, 2013

Is EMCOR a Canary or a Phoenix?




EMCOR's withdrawal from the construction services market in the UK means something.  EMCOR Pulls Out of UK Construction Market.  But exactly what I'm not sure.  As an experienced construction lawyer I've represented EMCOR and it's subsidiaries and similar entities in construction disputes over the years.  And I know the seedy underbelly of construction rears its ugly head in litigation and the failures revealed there are not sins that should, in every instance, be visited on the industry as a whole.  But the withdrawal, from an entire and historically lucrative market, by a global leader in the delivery of M&E services raises questions and concerns the built industry must address sooner rather than later.

First, as the blog post heading hints, I wonder whether EMCOR's withdrawal from the construction services market in the UK means EMCOR is a Canary in the built industry coal mine or a Phoenix rising from the ashes of the built industry's failure?  I don't know enough about the move at this point to argue one side or the other, but I intend to dig into the issue further and report back.  It is striking that, according to the article, "EMCOR's facilities management business will continue to trade as normal."

That reminds me of my own mantra that .15 cents of every capital budget dollar is spent ONCE on planning, design and construction, while .85 cents of every capital budget dollar is spent EVERY YEAR from the moment the facility and the supporting infrastructure is brought on line until the facility and supporting infrastructure are sold, demolished or, in located in Detroit, abandoned.

Again, I'm not sure whether EMCOR is the Canary in the built industry coal mine or a Phoenix, but I will investigate and report back. 

Welcome to the Collaborative Revolution!

James L. Salmon, Esq.
Collaborative Construction
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