Constructionline saves industry £165m in tendering costs

Grant Prior 10 years ago
Share

Constructionline claims to have saved the industry at least £165m last year by cutting duplication in the tendering process.

But Constructionline fears another £650m-a-year is still being wasted across the public and private sector by unnecessary pre-qualification duplication.

A recent survey carried out by the organisation revealed that a single PQQ takes a construction supplier an average of 4.5 hours to complete, costing an average of £147 in time that they can be working – and earning.

For any typical business, bidding for more than one job, the annual cost could run into thousands of pounds worth of lost money and time.

Sifting through PQQs and keeping information up to date is a similarly wasteful job for clients. It costs construction buyers £300 in time, staffing and administration to review one PQQ.

Philip Prince, sales and marketing director at Constructionline, is urgingthe industry to review its procurement processes.

He said: “In the last year alone, we have helped our members make efficiency savings in excess of £165m, which raises the question of how much more could be saved if the entire industry adopted more efficient tendering processes.”

To become a certified member, suppliers fill out just one pre-qualification questionnaire (PQQ) and their information is assessed to industry standards and retained on Constructionline’s database for prospective buyers to search.

In the last year alone, over 250,000 searches for suppliers’ information have been made by buyers through Constructionline’s database.

By requesting suppliers’ Constructionline membership numbers when advertising a new opportunity, suppliers can bypass stage one of the PQQ – saving both parties time.

In the last year, buyers have used this process to find new suppliers on at least 500 adverts.

Prince said: “We know from surveys carried out among our own suppliers that tendering for new work opportunities is time consuming, especially when you consider that 40 per cent of our suppliers said they win one in 10 of those contracts they apply for.

“If we can take away the burden of having to fill out the first stage of the pre-qualification process, we can save suppliers essential time that could otherwise be spent earning.

“Over two thirds of suppliers interviewed earlier this year told us that clients could be more helpful during the tender process. As such, we are working with our own buyers to address these concerns by encouraging them to look at the impact they are having on their supply chains and to deliver sustainable procurement.

“Our aim is to make pre-qualification as simple as possible for both suppliers and buyers, which we hope will deliver more efficiency savings for our industry.”

for more information about Constructionline click here

 

Latest news

£500m Leeds South Bank scheme gets green light

Leeds City Council approves plan for 1,350 flats in mixed-use South Bank development
3 hours ago

Galliford Try takes rebid £150m Carlisle Southern Link Road

Main construction works are due to start on 8km road in June
12 hours ago

HS2 Euston needs full design reset as costs set to double

Spending watchdog warns Euston stop-start delay will simply inflate already ballooning costs
1 day ago

Balfour Beatty to invest £60m in pop-up EV chargers

New Urban Fox JV will roll out 35,000 charge points across the UK over the next decade.
17 hours ago

Worker dies on major warehouse site in Stafford

Main contractor Glencar halts work while tragedy is investigated
19 hours ago

Sellar switches London flats/hotel plan for 444 student rooms

Southwark's King’s Place scheme will comprise five buildings of up to 11 storeys
19 hours ago

Bid race starts for Norfolk £30m Long Stratton Bypass

Council hopes to start work on 3.9km bypass in April 2024
19 hours ago

GMI to build first warehouse at £200m Teesside business park

Work to start early next month on first shed at airport business park
18 hours ago

Skanska Costain Strabag JV sets up own rebar plant

HS2 team now running on-site manufacturing facility to avoid supply chain issues
19 hours ago

Bid rigging: Keltbray to appeal and so could Squibb

Both contractors "disappointed" with level of fines
4 days ago

Ten demolition firms fined £60m for bid rigging

Full details of fines with Erith and Keltbray hardest hit
5 days ago

Retail contractor J M Scully files administration notice

£23m turnover Dorset based contractor lodges court notice
4 days ago

Civils specialist M Lambe delivers record performance

Housing civils specialist seeks to diversify in face of challenging housing market
4 days ago

Willmott Dixon clinches £60m Oxford Brookes University job

Preparation work starts on two new buildings at Headington Hill campus
4 days ago

Ferns seals £50m+ Openreach network services deal

Five-year south west deal to provide civils, poling and complex manhole programme
4 days ago

20 firms win £4.5bn Southern construction framework

A dozen new firms secure spots on fifth generation public sector deal
5 days ago

Call grows for bolder 18m second staircase rule for flats

Architects, surveyors and builders professional trade bodies demand lower height threshold than proposed 30m
5 days ago

GRS Roadstone warns staff following cyber attack

Materials giant sends out letters highlighting the extent of the attack
5 days ago

Inland Homes to suspend shares as results delayed again

Auditors need more time to go through embattled house builder's books
5 days ago

Kier wins £73m Southport events centre job

Local supply chain set to benefit from major new project
5 days ago

Multiplex profit rebounds as margin restored to 2.9%

London tower builder predicts return to revenue growth this year as major schemes advance
5 days ago

Upbeat Vistry to re-open mothballed offsite factory

Former Countryside timber panel factories rebranded Vistry Works in revived drive to deliver 5,000 units a year
6 days ago

Builder crushed and blinded in wall collapse

Property owner in court after barn conversion goes horribly wrong
5 days ago

Keltbray bags £140m haul of energy infrastructure work

Specialist secures trio of power frameworks, two battery storage facilities and an energy from waste package
6 days ago

Government awards £1.8bn for energy retrofit schemes – list

Housing and public building decarbonising funds awards to support 20,000 construction jobs
6 days ago

Landmark London scheme switches from flats to student rooms

Regal London rethinks Old Kent Road scheme with 900 student rooms and 220 affordable homes
6 days ago

Align reveals designs for final portal of HS2 tunnel

Contractor confirms how final key structure on project will look
6 days ago

Plans in for 1.4m sq ft of industrial space at Fiddlers Ferry

Peel NRE to appoint demolition contractors for coal-fired power station in weeks
6 days ago

Tilbury Douglas to replace hospital hit by weak concrete

Stoke-on-Trent outpatients building containing Reinforced Autoclaved Aerated Concrete to be replaced
7 days ago

Derby picked as destination for Great British Railways HQ

Public vote secures Derby's bid to be nerve centre of the rail industry
7 days ago

Contractor services