By Catriona Lingwood, Chief Executive of Constructing Excellence in the North East
Construction Alliance North East (CAN), the organisation established to represent over 500 regional SMEs engaged in construction and civil engineering, continues to receive widespread backing for its construction charter from industry bodies as well as over half the region’s MPs.
The Construction Industry Council (CIC) North East is the latest to show its support and now sits beside those of the North East of England Chamber of Commerce, Sunderland City Council and Northumberland County Council – organisations that have already supported it. The Charter seeks to change the way public sector procurement personnel work with regional SMEs in the industry. The adoption of more intelligent procurement methods, the Charter argues, would give regional SMEs a fairer chance to bid for public sector work, building resilience into the North East construction industry.
While Constructing Excellence in the North East represents the interests of all regional construction-related companies, it is a platform for industry improvement and we are all for collaboration, so I am not only encouraged by the kind of improvements the charter calls for but delighted to see that over half the region’s MPs have also signed up to it. The support of CIC North East is another step in the right direction, spreading the net a little further throughout the sector to include professional bodies, research organisations and specialist business associations within the construction industry.
CIC North East has already signed up to a 30-day payment charter which is also an aim of CAN’s – to encourage fairer payment terms within the industry. Adopting a more intelligent approach to procurement is common sense and fortunately, it is now well recognised that the cheapest price is not always the best. Even the Government’s Public Accounts Committee produced a report recently relating to strategic suppliers – those with the largest value of contracts – which is highly critical of the procurement process at present.
It is great news for region’s like ours that two of the report’s recommendations relate to reducing barriers to the bidding process for SMEs and ensuring that SMEs get paid on time. Construction is a vital part of the regional economy and the sustainability of the sector is crucial because if it is not given priority, the delivery of new homes, workspace and infrastructure will not be realised, which will significantly disadvantage the North East.
Through a common-sense approach, CAN continues to address some of the ills in the construction sector and I am pleased to see that it is starting to make headway as it lobbies for change.