CONSTRUCTION INDUSTRY COUNCIL (CLC) North East and Construction Alliance North East (CAN) contractor members are calling on local authorities and procurement chiefs to end ‘closed shop’ framework practices.

Architects, builders and contractors expressed concerns about regional planning and procurement systems at a Circular Economy in Action meeting on 6 April.

They want to see improved education of the Local Enterprise Partnership (LEP) and Council chiefs on the disconnect between planning and procurement teams and those tendering for contracts.

Closed Shop Frameworks

CAN board member, Matthew McCarrick, said: “Key questions arose about who is running the LEP, or who is running certain councils. The actual gripe seems to be that many bodies appear to be hiding behind the computer screens and red tape. We just can’t engage with them sufficiently.

“In some ways it doesn’t drill down into procurement and whether or not it helps to have a local contractor or a national one, but if you can’t speak with the person who is the gatekeeper, how do we try to get the projects started?”

Matthew McCarrick explained that many frustrations were aired about the ‘closed shop’ that frameworks can bring. Speaking of a local framework, he added: “The framework was awarded to six contractors; two of the contractors have gone pop, two of them don’t bid, so really there are only two contractors bidding – the system is flawed.

“The closed shop dictates that either you bid for it, and you get in there, or you don’t bid for work, and then you certainly won’t get any of that work – if you put all of the effort in and you don’t get anywhere, what is the point?”

Locals Overlooked

During the two hour breakfast meeting, business leaders from Surgo, BCE Northern Ltd, RE:GEN Group, Persimmon, XSite Architecture and Studio SP also discussed North East SMEs being overlooked for procurement opportunities. They urged a more transparent process in which businesses could demonstrate their viability to deliver a project, as opposed to the lowest bidder being awarded contracts.

Endemic Problems

CIC NE regional chair, Chandra Vemury, said the issues raised pointed to endemic problems across the construction sector. He said: “The scale of the problems which have been identified has surprised me. There seems to be a widespread lack of competence and the endemic nature of unhealthy practices in procurement directly hurt the whole construction chain.

“We have a need to build local resilience in complex situations, which can be achieved through improved understanding and communication between various professional teams operating within construction projects and by creating fair opportunities for companies based in the north east of England.

“Fair pay is one of those campaigns we are tackling, essentially improving conditions for local professional firms, local consultancies and local contracting firms so that if things get much harder economically these companies don’t necessarily end up being pushed to the tether.”

Following the discussions, it was agreed that CAN and CIC NE would approach mayoral candidates for the newly-developed North East Combined Authority to discuss their concerns and a best way forward for the betterment of the regional construction sector.

 

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