Public sector set to adopt 2012 Commitments?

The 2012 Construction Commitments - drawn up to ensure the London Olympics reflect best practice - could be adopted for public sector procurement. The move comes after an industry association meeting with construction minister Margaret Hodge last week. The Commitments, launched in early July, were drawn up by the Strategic Forum's 2012 Task Group, a cross-industry body. Many in the industry believe they should be adopted for public sector procurement. "We have talked to Margaret Hodge about this, and asked why the government doesn't work to the same principles," said Michael Ankers, chief executive of the Construction Products Association.

It is believed Hodge will now approach the Office of Government Commerce (OGC) to see what can be done about enshrining the Commitments into public sector procurement. Both Hodge and Tessa Jowell have already signed the document.

A DTI spokesman said: "The meeting looked at how the Commitments were working in terms of the Olympics, but also considered how the partnership approach could be developed to include the public sector."

The move would mean a huge change for some companies, warned Rudi Klein, chief executive of the Specialist Engineering Construction Group. "The Commitments talk about payment not being more than 30 days, but a lot of firms take 90 or 100 days to pay. If these firms are doing public sector work, will they be forced to change their payment terms? The ramifications are much wider than many people appreciate."

Peter Rogers, chairman of the 2012 Task Group, said the Commitments were about firms being "legally and morally decent".

"It is immoral to run at 90 days payment. We have to get the industry to believe that it is better to work in this way - and that will mean cultural change," he added.

[Contract Journal, 13 September 2006, p 2]