A new procurement era ahead?

By Catriona Lingwood, Chief Executive of Constructing Excellence in the North East

Unless you’ve been holidaying in some far-flung place in the past few weeks, you’ll know that the vacancy for the North of Tyne Mayor has been filled and Jamie Driscoll is now in office.  A key part of the mayor’s manifesto is to enable small businesses to win public sector work.

That very subject was the catalyst for the formation of Construction Alliance North East (CAN) in 2016. Since then, CAN has garnered support from many local MPs and industry bodies such as the Construction Industry Council and in 2018 successfully supported NEPO to develop its £300m Building Construction Works framework which resulted in a number of local companies being appointed.

The new mayor hopes to improve opportunities for small businesses by ‘creating a procurement framework to level the playing field for local businesses and keep those profits here. As well as encourage local public services such as council, hospital and universities to join this framework.’ He will also be building on the pioneering approach of Preston by working with employers to ensure that they prioritise local small businesses and local employment when procuring supplies and services. Since changing its procurement approach back in 2013, Preston has increased public sector spend in the city from 5% to an impressive 18%, returning in excess of £275m to the local economy and reducing unemployment from 6.5% to 3.5%. CAN firmly believes that by adopting a considered approach to public sector procurement, which ensures that tendering opportunities are structured in such a way to include rather than preclude regional SMEs, there is no reason why the North East cannot benefit in the same way that areas such as Preston have.

As the leading voice for SME contractors in the region, CAN is very much looking forward to working with the mayor’s office to provide guidance and support to help shape the procurement framework at such an exciting time for the region. However, whether using new or existing frameworks, CAN feels strongly that the following recommendations should be implemented.  Frameworks should recognise the specialisms and expertise of SME’s and should be based around a clear valued work bank with a commitment from clients to deliver work via the framework.  The number of companies on the framework should be proportionate to the framework value and the time and cost of the selection process should be reduced substantially.  Also, frameworks must encourage the use of the Social Value Act and promote better monitoring of contract performance ensuring fair treatment of all suppliers.

CAN is the main sponsor for Constructing Excellence North East’s ‘Procuring for Value’ event taking place on 13 June at The Grand Gosforth Park Hotel.  The event will look at what the Procuring for Value workstream is, how it will operate and the opportunities it will create for the industry and the region.

For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on 0191 500 7880 or email catriona@cene.org.uk.