ODA launches guide to supply chain success

The Olympic Delivery Authority (ODA) has set out how it plans to procure and manage 2,000 direct contracts with businesses that will in turn manage up to 50,000 agreements across their own supply chains in its Supplier Guide, launched last week.

Among the requirements are:

• Union representation.
• Payment of nationally agreed rates, where applicable, and fair and appropriate pay.
• E-tendering, but not electronic auctions.
• The reuse or recycling of 90% of demolition materials.
• Transporting half the construction materials by weight by water and rail.

The ODA has already said it will not be using retentions to ensure conformity by bidders, but has not said it will ban the practice further down the supply chain. "We don't think retentions reflect industry best practice and have signed up to the 2012 construction commitments that include a pledge not to use retentions. We are encouraging all of our contractors to sign up to the 2012 commitments," said a spokesman.

ODA head of procurement Morag Stuart launched the guide at the 2012 Construction Commitments roadshow in Bristol.

Stuart said: "We want to work in partnership with the best in the business to deliver the venues and infrastructure needed for the London 2012 Olympic and Paralympic Games, while contributing to a sustainable legacy.

"To achieve world-class business performance, our procurement will be open, transparent and fair. This guide aims to help businesses of all sizes, from all over the UK, support the Games and potentially benefit from their success."

The guide will help companies to prepare to take part in the ODA procurement process by setting out the criteria and values that the ODA will take into account when considering bids.

Later in the year, the ODA will launch a service to help small- and medium-sized firms identify opportunities in the supply chain that are likely to come on stream in 2008.

An announcement from the ODA on how construction workers are to be employed on Olympic sites is "imminent", a source close to the negotiations has told CJ.

The source said that the agreement would "endeavour to see that people are properly employed", but would not be drawn on whether workers would be 100% directly employed.

It is thought that unions are likely to compromise and agree to a form of words that would see direct employment used where possible, despite initially calling for the 100% target.