Member Article

NECC calls for National Procurement Framework plans to be scrapped

The North East Chamber of Commerce (NECC) is calling for the government to scrap plans for frameworks for national contracts, which could prevent growth in the North East construction industry.

The NECC has now written to the All Party Group for Excellence in the Built Environment, urging them to reconsider the impact of new measures aimed at stripping out the costs of public sector procurement.

The Group is currently conducting an enquiry entitled ‘Achieving Best Value in the Procurement of Construction Work’ in response to the government’s recent construction strategy report, which pointed towards making new frameworks in the construction industry.

The NECC believes the notion should be scrapped, because any monetary savings which would be made are far outweighed by the detrimental effect it would have no the regional economy.

Bundling larger contracts together would mean that only large or multinational companies would be able to compete for work, bypassing medium sized regional firms who are meant to be catalysts for economic growth.

Ross Smith, head of policy at the NECC believes that while the government is making positive moves to get good value out of construction procurement, it is not doing it in the right way.

He commented: “By creating national frameworks, it is squeezing medium-sized companies from both ends and yet these are the very companies that the government needs to grow if we are to rebalance the economy and kick-start North East growth.

“Having a strong understanding of the regional supply market and recognising the wider impact of awarding work at a regional level will have a far greater positive impact in the short, medium and long term.”

The NECC is now encouraging the government to leave bodies such as the North East Procurement Organisation to carry out regional procurement due to their success in communicating opportunities to the local business community.

Ross added: “The knock-on benefits on employment levels, improving skills in our local workforce and encouraging talent retention in the North East are all vital for the future.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .