Review finds building sector costly and unreliable

Jake Wallace
BBC News, Channel Islands
Getty Images Two men on scaffolding, working on the construction of a roof. Getty Images
The construction industry review was launched last year

Jersey's construction industry has "unreliable service, high and inconsistent pricing and poor outcomes", a review says.

More than 300 consumers and businesses have taken part in the initial stage of a consultation by the Jersey Competition Regulatory Authority.

The draft findings found a "marked level of consumer dissatisfaction", with 75% of survey respondents saying there was "a lack of healthy competition".

The authority said it would look at whether it needed to use "any of its powers" to drive prices down and quality up once the consultation was complete.

Sentiment 'broadly negative'

The construction industry review was launched in September 2024.

Authority CEO Tim Ringsdore said: "Consumer sentiment is broadly negative, and, while island constraints play a key role in sector outcomes, competition is not as effective as it could be.

"Through the review and future work, we will pinpoint areas affecting competition, and will continue to work with consumers, industry and government to help deliver improved competitive outcomes."

The authority said the next stage of the consultation would gather further feedback on its analysis and draft findings.

The authority said it could use its powers to "ensure that the island receives the full benefit of competitive construction markets – lower prices, increased quality and innovation", once the review is complete."

It also said possible action could include further market studies, increased outreach to the sector, warning letters and enforcement action.

"Penalties for breaching competition law include financial penalties up to 10% turnover for a period of three years, so it's important construction companies are aware of their responsibilities within the competition law," it said.

A consultation on the draft findings is open until 16 May.

Follow BBC Jersey on X and Facebook. Send your story ideas to [email protected].