BETTER BUILDING FOR BRITAIN GETTING THE BEST OUT OF PUBLIC SECTOR CONSTRUCTION CONTRACTS

Making Government Departments better clients will deliver better value for taxpayers' money in major contracts with the construction industry, Paymaster General Geoffrey Robinson said today.

Publication of the first of three sets of guidance provides Departments with best practice guidance which will improve consistency of approach to all stages of project development leading up to the agreement of contracts.

Announcing the new guidance, Mr Robinson said :

"The construction industry is a vital part of the UK economy, and the Government is its biggest client. We spend 24 billion Pounds with it every year, 40 per cent of its total business.

"It is vital for the industry and the tax payer that Government Departments play their part in ensuring higher quality and more efficient products when preparing contracts to deliver public sector construction contracts.

"The Government is committed to encouraging the construction industry to meet the need for innovation and improvement, working together as far as possible in partnership. All Departments must be clear about the standards they need to attain as best practice clients, and must have firm plans for achieving them.

"This guidance, developed for the first time in consultation with the industry and reflecting its views, will do much to achieve those goals."

The first set of guidance deals with:

core competencies required by clients to ensure that construction contracts deliver what is needed;
achieving best value for money from construction procurement; and
the appointment of consultants and contractors where the emphasis is on selection on the basis of a combination of quality and price rather than price alone.

Further guidance covering more detailed aspects of the client role, including financial aspects of construction projects, project evaluation and feedback, team-working and life-cycle costing, will be issued during 1998.

The guidance documents will provide best practice advice to Departments, building on and extending the Construction Industry Board (CIB) Codes of Practice. The Treasury Procurement Group has worked closely with other Departments and the construction industry to ensure that the views of practitioners are fully represented.

The Treasury invitation to the industry to comment on the guidance, and the willingness of the industry to respond positively, is a first in this area and is a clear and significant step forward in developing a practical dialogue with Government. This approach has been strongly commended by the CIB.

NOTES TO EDITORS

1. The Paymaster General announced publication for public consultation of draft versions of the guidance circulated today on 26 September 1997 (HMT Press Release 114/97).

2. Development of the guidance has been overseen by the Government Construction Clients Panel (GCCP), which ensures coordinated action by Departments and the development and implementation of cross-departmental client issues.

3. The GCCP is developing a powerful agenda for further enhancing the client role, which includes work on benchmarking and performance measurement, partnering and value and risk management. It has a number of action groups dealing with these and other particular issues, as well as a 'Dialogue With Industry' group that provides a forum for exchange between Departments and construction industry representatives.

4. The first set of guidance comprises three documents:

Essential Requirements for Construction Procurement
Value for Money in Construction Procurement
Appointment of Consultants and Contractors

5. These are being distributed to Government Departments, CIB, the Construction Client Forum, and industry representatives on the Dialogue With Industry Group. Industry copies can be obtained from the Treasury Public Enquiry Unit on 0171-270 4558.

6. Media enquiries should be addressed to Charles Keseru on 0171 270 5188.

Press Notices 1997 July to December Index