Egan: getting back on track


Exclusive by Graham Ridout



Willmott Dixon and Llewellyn Construction are set to embark on a revolutionary Government-backed pilot project that could spell the end of compulsory competitive tendering and council practice of accepting lowest bids.

The strategic scheme is being run by London Borough of Camden's housing directorate and will cover repair and maintenance to the 34,000 houses and flats under council control.

The Construction Industry Board will use the Camden contract as an example of how the Task Force efficiency agenda can be achieved by local authorities across the UK.

Meetings between the council and contractors were held this week to thrash out details of the scheme that is to be based on a partnering agreement. CJ understands that one idea being floated is for the two contractors to be given similar types of properties to maintain. The relative performance of the two firms will then be monitored and, possibly, benchmarks set for future projects.
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As CJ went to press, Willmott Dixon and Llewellyn had yet to be officially appointed but both were approved at a council meeting last week. A council spokeswoman said an announcement was "imminent" on how the scheme will operate, including fuller details of the contractor's role and the partnering agreement.

Camden is one of 53 local authorities chosen to take part in the Government's "best value" programme under which councils are encouraged to consider tenders which offer value for money rather than simply going for the cheapest bid. In Camden case, it is one of 37 authorities being given "full status" - all services contracted out, from supplying school dinners to housing maintenance, will be judged on "best value" criteria.

Deputy Prime Minister John Prescott supports both the scheme and Sir John Egan's Task Force.

The Rethinking Construction report stems from his outrage over the cost of refurbishing some council properties.

At the launch of Sir John's report, Prescott pledged that the Government was moving away from the cheapest tender to one that offers best value.


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