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Local firms for local jobs in Newcastle
10:38 18 Sep 2002
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by Carol Millett
Newcastle City Council is looking for long-term partners to help deliver its £650m design and construction programme - and insisted it would try and protect the local economy by using regional firms wherever possible.
The council is calling for expressions of interest by the end of October from both private sector firms and other local authorities. Richard Wise, head of City Design, which oversees the council's design and construction programme, said Newcastle City Council was open to bids for all or part of the services, but wanted to avoid creating a form of partnering that would exclude local firms from local work.
"We have seen other councils go down this route and we believe it is damaging to the local economy to exclude local firms in this way. Newcastle has a corporate policy to support and regenerate the local economy," he said.
"We can't for reasons of fairness and probity specify that we want only regional contractors as partners, but if a big national company came to us offering to deliver the entire service we would have to think very hard about what benefits that deal could offer us, bearing in mind the large overheads these companies bring with them in terms of supply chain costs."
Small builders welcomed the news this week. A Federation of Master Builders spokesman said: "We believe the tide is turning as more and more councils realise the cost to the local economy in terms of jobs and skills that is incurred when local firms are excluded from these long-term partnering arrangements."
Wise added that the council is looking for "innovative proposals from interested parties". He said: "What we are hoping to do at this stage is identify potential partners that are interested in providing part of, or all our design and construction services."
Packages on offer include architectural, quantity surveying, engineering design, project management, M&E and construction supervision services. Partnering contracts are expected to run for a minimum of five to seven years.
The city's annual capital programme is about £65m. More than 40% of that budget is spent on housing, but the budget for housing services is expected to increase once the council has completed its housing stock option appraisal, which will determine how its housing stock is to be managed.
Wise declined to elaborate on what the council is looking for in a partner. "We have our own ideas but we don't want to steer people down that route in case it encourages firms to pay lipservice to our views," he said.
But he added: "We want to form a more proactive union with contractors and reduce the time-consuming process of procurement. We believe we can do this by building long-term teams to deliver the product. What we want from the private sector is innovative ways of doing this."
The council is holding an open meeting on 7 October and will call for expressions of interest by the end of the month.
Newcastle City Council is looking for long-term partners to help deliver its £650m design and construction programme - and insisted it would try and protect the local economy by using regional firms wherever possible.
The council is calling for expressions of interest by the end of October from both private sector firms and other local authorities. Richard Wise, head of City Design, which oversees the council's design and construction programme, said Newcastle City Council was open to bids for all or part of the services, but wanted to avoid creating a form of partnering that would exclude local firms from local work.
"We have seen other councils go down this route and we believe it is damaging to the local economy to exclude local firms in this way. Newcastle has a corporate policy to support and regenerate the local economy," he said.
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"We can't for reasons of fairness and probity specify that we want only regional contractors as partners, but if a big national company came to us offering to deliver the entire service we would have to think very hard about what benefits that deal could offer us, bearing in mind the large overheads these companies bring with them in terms of supply chain costs."
Small builders welcomed the news this week. A Federation of Master Builders spokesman said: "We believe the tide is turning as more and more councils realise the cost to the local economy in terms of jobs and skills that is incurred when local firms are excluded from these long-term partnering arrangements."
Wise added that the council is looking for "innovative proposals from interested parties". He said: "What we are hoping to do at this stage is identify potential partners that are interested in providing part of, or all our design and construction services."
Packages on offer include architectural, quantity surveying, engineering design, project management, M&E and construction supervision services. Partnering contracts are expected to run for a minimum of five to seven years.
The city's annual capital programme is about £65m. More than 40% of that budget is spent on housing, but the budget for housing services is expected to increase once the council has completed its housing stock option appraisal, which will determine how its housing stock is to be managed.
Wise declined to elaborate on what the council is looking for in a partner. "We have our own ideas but we don't want to steer people down that route in case it encourages firms to pay lipservice to our views," he said.
But he added: "We want to form a more proactive union with contractors and reduce the time-consuming process of procurement. We believe we can do this by building long-term teams to deliver the product. What we want from the private sector is innovative ways of doing this."
The council is holding an open meeting on 7 October and will call for expressions of interest by the end of the month.
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