Confusion reigns over supply chain changes

Grant Prior 13 years ago
Share

The industry is perplexed over Government plans to revamp supply chains which could see major players bypass their established subcontractors on public projects.

Amey and Balfour Beatty became the first contractors to agree last week to advertise subcontractor work opportunities on the Government’s official free contractor finder website.

The Government initially hailed the move as a major step forward in its drive to push more public spending into the hands of smaller firms.

The deal means contractors can bypass their established supply chain arrangements for the open tendering approach now favoured by Cabinet Minister Francis Maude for subcontractor packages.

But the Cabinet Office then insisted to the Enquirer that the new arrangements would not replace existing supply chains.

A spokeswoman said: “This is not about bypassing established supply chains, it is about making the process more transparent and giving SMEs a chance to get more work.”

Balfour is using a Scottish Government website to tender fit-out packages on its £10m job at a crime lab in Gartcosh in Lanarkshire.

Amey insisted that it would continue to use its existing supply chain.

Maude said that Balfour and Amey are among nine major companies across all industries “opening up their supply chains to greater competition by advertising their sub-contracting opportunities on Contracts Finder.”

He said: “It’s very simple – if you allow more businesses and more business models to compete- you find better value solutions.”

The Contracts Finder website gives businesses a single place to survey everything on offer from Government and currently has 97,000 viewings per week.

One major contractor told the Enquirer: “It seems like mixed messages are coming out on this one.

“First we are told it’s all about supply chains then this hits us and it seems like it’s open tendering time again.

“The current system seems to work pretty well and this looks like Government meddling in something specific to make a wider political point about helping smaller firms.”

One subcontractor said: “The whole situation is totally confusing.

“Is it worth us going for a supply chain place when the rules can be changed at any time and the whole process thrown open to anyone?”

Latest news

Breakthrough for HS2 as first Birmingham tunnel section dug

Balfour Beatty VINCI completes 3.5km TBM drive in 652 days drive
2 hours ago

HS2 Curzon Street station redesign approved as timber roof axed

Change to meet stricter fire safety rules and cut maintenance costs
6 hours ago

Care home fire trial collapses

Prosecution withdrawn against four firms including Morgan Sindall Property Services
1 day ago

Leicester rebids £22m station revamp after failed tender race

Council opts for ECI route after receiving one bid for project
6 hours ago

Kier wins East Coast College rebuild job in Great Yarmouth

Work to start this summer for 1,300-student college
7 hours ago

R G Carter wins £28m hospital car park job in King’s Lynn

MSCP paves way for £1.5bn Queen Elizabeth Hospital rebuild in 2027
7 hours ago

London to relax green belt building rules

Sadiq Khan shifts position on planning
7 hours ago

Willmott Dixon wins Great Yarmouth waterfront deal

North Quay 10.5 acres mixed-use scheme to advance
1 day ago

SIG chief quits to join Travis Perkins

Gavin Slark to leave by the end of this year
7 hours ago

Eight take key spots on £250m Prosper framework

Housing and public building upkeep deal for North East awarded
1 day ago

Early call-out for £150m Ebbsfleet Garden City infrastructure

Bidders day to set out plan for Ebbsfleet Central commercial scheme
2 days ago

McLaren storms April contracts league with flurry of wins

Cardiff Bay Arena job headlines a series of big contract wins
1 day ago

Balfour Beatty lifts cash forecast after strong first quarter

Contractor set to hit £1bn average monthly net cash in 2025
1 day ago

Goldman Sachs-owned Adler & Allan buys 180-strong civils outfit

West Country's Glanville Environmental gets new owner
1 day ago

Caddick lands first contract for £200m Skelmersdale revamp

Developer gets green light for masterplan
1 day ago

Van Elle sells HGV fleet to haulage firm

WS Specialist Logistics pays £2.9m to take on fleet and drivers
1 day ago

Buyers more bullish about prospects for year ahead

Residential "resilient" but commercial work a weak spot
2 days ago

Council backs first Brutalist car park-to-flats scheme

Newcastle-under-Lyme multi-storey car park to be reborn as pioneering homes scheme
2 days ago

Hinkley Point C hits peak build with 26,000 jobs

3,000 more workers to join as fit-out work ramps up
2 days ago

Over 40 firms win Wessex Water M&E minor works deal

Broad sweep of specialists picked for AMP8 programme
2 days ago

Spencer lands Scottish bridge hat-trick

Steelwork, gantries and bearing upgrades on Kessock, Forth and Tay crossings
3 days ago

Winners revealed for £1.5bn decarbonisation deal

Fusion21 confirms places for 40 firms: Full list
2 days ago

Cladding firm fined £225,000 after fatal fall

Court hears how cherry picker didn't reach all parts of repair job
2 days ago

Completed buildings caught-up in Gateway 2 chaos

Developer distraught after dealing with Building Safety Regulator
3 days ago

Aviva submits plans for 34-storey City office tower

Subject to planning work to start in autumn 2027
3 days ago

Murphy takes 40% stake in Aussie civils contractor

Firm enters Australasian market with stake in Sydney-based contractor Abergeldie
4 days ago

Moat seeks firm for £420m repairs and maintenance deal

15-year deal to upkeep 20,000 south east homes
3 days ago

Lynch takes over hotel for Sizewell plant operators

Hire giant now in the hotel business to guarantee accommodation for workers
3 days ago

Subcontractors wanted across Scotland

Latest Constructionline event in Glasgow: Register now
3 days ago

Six guilty of £2m bribery over Devon housing site deals

Corrupt building bosses and E.ON project chief and QS sentenced
1 week ago

Contractor services