CIB: partnering to replace tendering

by David Nunn

A Construction Industry Board representative predicted last week that partnering could replace tendering as the normal method of procurement in the local government sector within three to five years. Lists of approved contractors would in future be shorter, and in some cases might be scrapped altogether in favour of framework agreements.

CIB chief executive Don Ward was commenting after a meeting with Local Government Association advisers to discuss improved procurement and the CIB's best practice codes.

"[Local authorites'] feeling was that the codes of practice had been overtaken by partnering and best value," Ward told CJ.

Councils believe the move toward partnering depends on the outcome of the Government's three-year trials for Best Value, which are about to yield their year one interim report. If the trials are successful, Best Value will be adopted as a fixed policy clearing the way for partnering.

"What the Local Government Association is saying is that if Best Value is adopted, framework agreements would become feasible immediatelyÉ In three to five years it looks like partnering could be the norm."

If local authorities let construction work on a long-term basis they would have less need to maintain costly approved lists. Typically councils can have 600 companies on their list, but in theory this could be cut by 90 per cent if they opt for framework agreements with a core of suppliers.

"They are saying the likely implication is that they will move to shorter approved lists. The question occurs, will you still need an approved list at all?"

It was hoped that the meeting would produce an action plan to benchmark local authority procurement and disseminate best practice information in response to the Egan report, however this was not forthcoming.

The CIB believes that evidence of better local authority procurement practices is a litmus test of whether the industry is truly changing - and a catalyst for small and medium-sized builders to take it more seriously.

"The local authorities believe that they are already best practice clients and have been for some years. I wanted them to gather some data to help prove that," said Ward.

The advisers representing the LGA were not available to comment as CJ went to press. However, one local authority procurement source confirmed: "We definitely believe local government has been one of the better practice clients over the years."

l The Task Force conference at which demonstration projects will be formalised will now be held on 3 November. The DETR is shortly expected to announce a list of 30 projects already volunteered by the industry to encourage more to come forward.