Editor's comment: A welcome upheaval

Emma Penny 70 x 70 March 2006


By Emma Penny

Convincing public sector clients to change their approach to procurement is a difficult task – and not one that the construction industry can undertake on its own.

There is a widespread belief from contractors that while they are more than willing to adopt new approaches to construction such as partnering and frameworks, there seems to be little movement from local authorities, who have a budget of £55bn-a-year to spend.

For too long, construction firms have faced local authorities who are unwilling to change their procurement methods, insist on completion of reams of bespoke paperwork for each job, and promptly award the tender to the cheapest bidder.

So it’s good news that government is, at last, insisting that things change. A White Paper and companion report from the Department for Communities and Local Government says that current patterns of delivery "need to be challenged".

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A key aim is to tackle the rising cost of bidding for work – particularly for SMEs – as well as a move to improve flexibility, innovation and efficiency. And everyone should welcome the fact that value for money will be a key driver in success, rather than lowest cost.

It’s high time someone insisted that local government improve its procurement methods. It is such a vital strand of work for many companies that inconsistencies, incompetence and inexperience on the part of less clued-up local authorities can cost businesses a lot of time, money and effort.

A strong lead from central government will certainly help – but it will need to ensure its words are backed up. Asking people to change is fine. Actually getting them to change can be an altogether more difficult task, but it’s one which government must not shirk if it wants to ensure the survival of many of the construction contractors it uses.

Emma Penny, editor, Contract Journal, 15 November 2006, p 56



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