Smaller contractors attack £5.5bn Scape deal

Grant Prior 8 years ago
Share

Scape Group is coming under fire over claims it is shutting out SME contractors during the latest revamp to its £5.5bn national construction framework.

Scape is opening up the deal to multiple companies rather than stick with current main provider Willmott Dixon.

But even the smallest of the five new lots calls for bidders to have a minimum turnover of £125m.

Scape said smaller firms can band together to launch bids which qualify in terms of size.

Douglas Kell, secretary of Construction Alliance Northeast, said: “Once again, public sector procurement is still weighted in favour of the national contractors.

“I know that a typical area of operation for an SME is about one hour’s travel time from its base.

“So it would seem with five lots covering such large regions as UK-wide, Scotland and Ireland that either Scape is deliberately trying to restrict the number of contractors able to apply or is assuming that large, national contractors will qualify because their supply chain can be located at a reasonable distance from their bases.

“This means that SMEs will only be able to aspire to the role of Tier 2 contractors or otherwise Scape has a lack of understanding of construction logistics.

“So much opportunity to undertake regional public sector construction projects has all but been removed for regional SMEs over the last few years as a result of frameworks like this.”

John Simons, Strategic Procurement Manager at Scape Group, said: “The National Construction framework, as with all of our frameworks, is designed to include micro, small and medium sized enterprises at all stages and our track record of extensive SME engagement is proven.

“The lead entity turnover level indicated in the prior information notice for the National Construction framework is in no way a barrier to SME involvement and does not restrict the number of contractors able to apply.

“SMEs can collaborate and bid as in a joint venture or consortia arrangement, ensuring that an organisation of an appropriate scale, skill and scope is appointed to deliver the volume of projects facilitated by this framework – a point which will be emphasised in our upcoming framework market awareness sessions.

“In addition, SMEs can reap numerous benefits by operating as part of the supply chain.

“We, together with our partners, continuously engage SMEs throughout the process and since Scape Group’s inception 10 years ago we have worked with 36,900 SMEs.

“Local procurement is also extremely important to us. Scape has spent over £1.3 billion within 20 miles and over £2 billion within 40 miles of project sites over the past decade.

“We not only require our partners to engage with SMEs – they must commit to a high percentage of SME supply chain spend across their subcontractors – we proactively measure our success in this regard, which is one of our key performance indicators on every single project and across the whole framework.”

Latest news

Police ban mobile cranes from roads over Easter

Plant hire bosses livid as forces across the country extend abnormal load embargoes
19 hours ago

Director jailed for exposing workers to asbestos

Ten tonnes of asbestos insulating board stripped out by unqualified workers
23 hours ago

Site labour rates start rising again

Industry's biggest payroll firm says "it feels like things could be turning round"
1 day ago

Council finds extra £33m for Buckinghamshire link road

South East Aylesbury Link Road costs soar by nearly 30% to £147m
1 day ago

Quartet win £490m North West & Central railway works deal

Skanska, Kier, Octavius Infrastructure and Story Contracting bag major projects deal
1 day ago

Unite Students plans first major mixed-use scheme

Developer's first mixed BTR and PBSA project to be built in Edinburgh
2 days ago

Galliford Try names new finance director

Rentokil's Kris Hampson joins contractor to replace Andrew Duxbury
1 day ago

Council boss hits out at bat threat to £274m road job

Natural England could scupper scheme due to be built by Ferrovial
1 day ago

Hydrogen-fuelled diggers to be allowed onto highways

Government to raise barrier to widespread use of hydrogen fuelled plant in construction
2 days ago

Plans in for £118m Government hub in Darlington

Work pencilled to start later this year on new home for 1,450 civil servants
2 days ago

New contractor highlights Henry Construction jobs on website

New firm lists jobs by failed contractor to show its experience
2 days ago

Contractors line up for £2.6bn Anglian Water AMP8 deal

Eight big names land places on pioneering @one Alliance
3 days ago

McAleer & Rushe bags first major later living project

Work to start this month on 167-flat Royal Tunbridge Wells project
2 days ago

Kier starts first all-electric prison houseblock job in Kent

Next-generation fully electric T60 prison houseblock to be built at HMP Elmley
2 days ago

Keepmoat sees better times ahead in housing market

Profits dip in 2023 despite construction of record number of new homes
2 days ago

Vistry signs partnership deals for 1,900 mixed tenure homes

West Sussex former airfield and Newmarket sites to break ground
3 days ago

Turnover at Wates tops £2bn for first time

Construction division exceeds £1bn turnover as average contract value hits record high of £48.3m
3 days ago

L&G looks to sell Cala Homes in exit from house building

Insurance giant reported to be preparing to offload 3,000 homes-a-year developer
4 days ago

Multiplex profit almost trebles as margin hits 5.5%

Revenue jumps 20% to £675m as big London scheme complete
3 days ago

TopHat puts plans to open huge Corby factory on hold

Advanced manufacturing facility was due to employ 1,000 people
3 days ago

Laing O’Rourke lands Calderdale hospital job

Enabling works to start by the end of this year at West Yorkshire site
3 days ago

Go-ahead for £475m Sunderland film and TV studios

Work to start this year on first phase Corwn Work studios
3 days ago

Willmott Dixon set for £20m Stockport Community Hub

Planning decision expected in June on Marple leisure and health clinic project
3 days ago

Police hunt for blundering dumper truck thief

Raider drove into a fence before getting stuck on a bank
3 days ago

Beattie Passive files administration notice

Passivhaus pioneer has been in business for more than ten years
4 days ago

McAlpine set for £50m space and tech centre

Northumbria Uni sign pre-con deal for new satellite research hub
4 days ago

VolkerFitzpatrick seals £34m Kent road viaduct

Work to start next year on Sturry Link Road near Canterbury
4 days ago

Eight win £600m Scottish civil engineering framework

Balfour, Farrans, Graham and Morgan Sindall win major works lot
4 days ago

Site engineer crushed to death by excavator

22-year-old victim died just months after graduating from university
6 days ago

NG Bailey fined £135,000 after hospital site death

Worker died after striking overhead beam while navigating a mobile elevating work platform
7 days ago

Contractor services