Contractors accused of wasting money at bid stage

Contractors need to radically rethink their position at the preferred bidder stage of PFI contracts if they are to address the rising concerns over bid costs, according to solicitor Burges Salmon.

"Bidders, in part, have themselves to blame as they waste their own time and money when it comes to the preferred bidder stage," said partner Mark Paterson. "It is essential they have all documents and assurances from their subcontractors and lenders together before it gets to this stage.

"Often we find teams have lovely graphs and plans but are weeks and months behind schedule, costing them thousands. It often takes the average contractor at least three months to get to the best and final offer stage."

Any future shake-up shake will come as a shock to many companies and groups such as the Major Contractors Group which are leaning on government to foot bidding costs.