Strike early for keys to framework success (CJ Frameworks conference)

Smaller sized contractors wanting to win framework contracts need to identify opportunities early and get to know the client in the pre-bid phase, if they are to have any chance of being successful, according to Mark Wakeford, managing director of Stepnell, the Midlands and south coast regional contractor, which has a turnover of £45m.

“The pre-bid phase is perhaps the most important. We take the view that we are at an inherent disadvantage compared with the big national contractors. Our three frameworks are with old clients, so we were well aware of their intentions at an early stage, which gave us time to prepare,” said Wakeford.

“You have to get in there early to have enough time to convince the client that you are good enough to bid. Many clients have the perception that there is less risk with a large contractor.”

Wakeford added that firms must answer the Public Procurement Questionnaire (PPQ) carefully and understand what the client’s priorities are. “It’s important that you answer questions positively, even if that means there may be a bit of spin,” he said. “But you must bid realistically and understand that frameworks are hard work to manage. It does require proactive people on both sides.”

Bill Munn, best practice director with Thomas Vale Construction, told delegates that to avoid being burned on frameworks, firms needed to play to their strengths.

He said firms need to have the experience and expertise, the capacity, financial stability, the right management systems and be prepared for the client to demand “open book” accounting scrutiny.

“You’ve also got to have an established supply chain,” he said. “They carry your reputation, so have you scrutinized them as the local authority will scrutinize you? Check their health and safety and training records and ask them if they are prepared to work under an open book style.”

Munn said that firms need to prove their credibility to clients. “You have to show you want to improve your business and have the strategies to do so and the KPI measurements to prove it.”

He added that firms needed to have the right mix of trained people with a ‘can do’ culture.

“You need to be in it for the long term, be prepared to share knowledge with other contractors and be able to continuously improve,” he added.

[Contract Journal, 11 October 2006, p 8]