Local authorities urged to give local firms a chance

CONSTRUCTING Excellence in the North East today is adding its weight to the calls for local authorities in the region to make it easier for local firms to bid for work.

Research published in 2007 revealed that a mere 45% of the £3.5bn of public sector work contracted out in the region is won by local companies.

Tender criteria, such as setting a minimum turnover for applicants and a firm having to show it has worked on similar contracts, is making it nigh on impossible for local businesses to win some local authority work.

It is not just small and medium-sized enterprises that are being prevented from tendering for some contracts. Larger concerns are finding they are too small to be a main supplier, but too big to be a sub-contractor.

It makes no sense when companies, particularly those in construction who have the ability to offer a high-quality service and bring in a project on time and within budget, are being denied the chance of bidding for work.

Instead, millions of pounds, with the potential of helping boost the North East economy, is leaching away to other areas of the country.

Naturally, it would be wrong for local firms to take precedence and be given work just because they are local.

However, it is equally inappropriate for tender frameworks to be couched in terms that make it unfeasible for local firms to put in a bid.

This is not a case of asking for North East firms to be given an unfair advantage, only that they are consistently given a genuine chance to compete.

We would urge local authorities across the region to review their procurement policies and processes to make sure they do not inadvertently disadvantage our businesses.

For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on 0191 374 0233 or catriona@cene.org.uk .

Ross Smith, head of policy, North East Chamber of Commerce.

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