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Building a Better Future for the Construction Industry

The Construction Alliance blog
Friday, 17 December 2010

Procurement to be a major campaign issue

CECA members and others in the construction industry are concerned that in the focus on CSR and the Government’s drive to reduce public spending, which CECA supports, positive areas of public policy reform are being overlooked.
Procurement is an area in which a programme of positive reform of the way in which both clients and contractors procure construction services from their supply chains could make major efficiency savings and reduce a burden on contractors that has grown significantly in recently years.
  • Implementation of PAS 91 across the infrastructure sector – Government’s own estimates suggest that this alone could save construction industry £250 million a year
  • Introduction of standard reference form for contractors, offering potential resource savings for both clients and contractors
  • Roll-out of more suitable forms of indexation for long-term contracts, ensuring appropriate transfer of risk between contractor and client, improving competiveness of bids
  • Mandatory restrictions on the number of firms allowed to tender for public sector contracts, ensuring contractors do not have to face unacceptably high bid costs.
The key element is to drive waste out of the delivery of infrastructure. In 2010, CECA and ACE demonstrated that business needs effective transport infrastructure to ensure productivity and growth. Effective and efficient infrastructure is a matter of national importance, a key part of the economic recovery and must be delivered with less waste. Procurement must be high on the agenda in 2011.
- Phil Morgan – head of external and public affairs, Civil Engineering Contractors Association

posted by The Construction Alliance : 13:17


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