Alert over prime contracting aims

by John d'Arcy



There is a "real concern" that prime contracting will do the very reverse of what it is intended to achieve, according to Malcolm Clarke, senior deputy chairman of the National Federation of Builders.

Clarke commented: "It could distort the supply chain, drive a wedge through existing partnerships that work very well, and undermine the laudable aims of best value and partnership. Our federation, with its General Contractor Group and strong regional associations, will represent those concerns vigorously."

He said the NFB - part of the Construction Confederation - held a unique position as "the leading trade association representing small and medium-sized enterprises (SMEs) in the industry and beyond." As such it would be proactive in ensuring that these firms were not excluded from new forms of procurement.

The federation's annual report identifies prime contracting as one of the NFB's priority concerns. It says policy initiatives will focus on securing equitable tender and contract clauses that allow regional firms to retain a fair deal in the supply chain.

At the same time, federation officers concede that it has yet to establish its own strong and distinctive identity. Chief executive Tony Maynard noted that "the federation has experienced organisational difficulties and too many changes in brand identity. Our profile is too low".

This is partly attributed to the immediate demands of tackling a financial crisis. Action on this front means that the NFB achieved a £92,707 surplus last year following its £121,977 deficit in 1998. Subscription income last year stood at £2.6m and the membership total was 3,188 firms.