Contractors cannot afford to bid for public work

Grant Prior 13 years ago
Share

Nearly two-thirds of Scottish contractors are not bidding for public work because of the huge costs of procurement.

Industry leaders north of the border are now calling for radical reforms after a survey found each pre-qualification questionnaire completed has only a one-in-36 chance of winning work

The Scottish Building Federation has attacked the current system as a ‘lottery’.

Its latest Scottish Construction Monitor found an average of more than three out of every four pre-qualification questionnaires completed by construction firms for public tenders failed to secure them a place on the tender shortlist.

Even when shortlisted, an average of seven out of every eight tender submissions was unsuccessful.

Federation Chief Executive Michael Levack said: “This latest survey shows what a lottery the current public procurement process has become.

“I’ve heard employers representing businesses of all sizes argue they would have better odds of generating revenue by placing bets at the roulette wheel than tendering for public contracts.

“The root and branch reform of construction procurement the Scottish Government has promised is clearly long overdue.

“It’s particularly concerning that so many SMEs in the industry are avoiding public procurement altogether because they find the costs so prohibitively high.

“Scottish ministers have set great store by their commitment to give SMEs greater access to the public procurement market.

“This survey demonstrates the urgent need to tackle sky high procurement costs if more smaller construction firms are to be persuaded of the benefits of tendering for public contracts.

“I’m pleased that the Scottish Government has finally launched a public consultation on its proposed Procurement Reform Bill.

“But we already know that the current procurement system is broken and the measures needed to fix it.

“With the industry now facing a second recession in the space of four years and confidence continuing to slide, Scottish Ministers need to act immediately to streamline the procurement process and provide fairer and more cost-effective access to publicly funded building contracts for firms of all sizes.”

Latest news

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
2 days ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
2 days ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
2 days ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
2 days ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
3 days ago

TSL turnover smashes £500m as profit almost trebles

Data centre and logistics contractor rises high on surging demand
3 days ago

Gleeson Homes chief exec leaves business after restructure

Management revamp after "challenging" year
3 days ago

Green light for 1,600-home Oldham town centre overhaul

Plans for over 1,600 homes across six regeneration sites approved
3 days ago

DSM wins Norwich city centre clearance job

Anglia Square shopping centre clearance for £300m scheme
3 days ago

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
3 days ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
4 days ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
4 days ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
4 days ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
4 days ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
4 days ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
4 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
5 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
5 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
5 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
6 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
5 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
5 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
5 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
6 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
6 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
6 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
7 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
6 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
6 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
6 days ago