A new regional initiative – Construction Alliance North-east – has been launched by four trade associations to lobby for SME and regional contractors that feel they are being denied their fair share of work available in the region.
National frameworks operated by Scape and the Education Funding Agency, which direct work at national-level contractors, are identified by the new organisation as a key part of the problem.
CAN brings together the north-east divisions of the Federation of Master Builders, the Civil Engineering Contractors Association, the National Federation of Builders and the Northern Counties Building Federation. The four federations together represent 500 companies employing in excess of 100,000 people.
Jeff Alexander, chairman of CAN and representative of the NCBF, said that businesses in the north east had been impacted by the success of the Scape framework, which allows local authorities to place work with Scape’s pre-approved contractors: for instance, Willmot Dixon is the sole incumbent on Scape’s major works £1.25bn framework.
“A lot of local authorities in this region have used it as an expedient way of procuring work without going through a competitive process – you see a lot of Willmott Dixon signboards in this area.”
Alexander, a director of £30m turnover regional contractor Surgo Construction, added: “But local authorities have also had their hands tied by national government, for instance the EFA frameworks. We were part of a consortium that was put together to get on the EFA’s minor works framework, but even by combining we weren’t able to get the opportunity.”
"Our members, and those in the other organisations, feel that in the north east some fairly substantial businesses are not getting their fair share of public work. A lot of work is getting won by big national contractors."
Julian Weightman, north-east chair, FMB
Julian Weightman, managing director of family-owned Border Craft Group and the FMB board representative for the northern counties, told Construction Manager that the new alliance would engage with local MPs, and local authorities and try to build regional firms into a proactive force.
“Our members, and those in the other organisations, feel that in the north east some fairly substantial businesses are not getting their fair share of public work. A lot of work is getting won by big national contractors, which might then give some of it back to regional businesses, but for less money as the national contractor takes their slice.
“So it puts regional contractors under undue pressure. We’re here, we’re capable, but it needs a fair procurement system to allow us to do it. CAN will deal with other issues too, but procurement is the main one.”
Weightman said that the problem had been apparent for several years. But with the recent upturn in the amount of work tendered by public sector clients, the imbalance had become more apparent. “The north east of England is not getting the opportunities to be part of the growth going forward.”
According to the Newcastle Chronicle, the move follows the collapse of several construction businesses in the last year, including Koru Property Services, Southdale and Turney Wylde Construction. GB Building Solutions also had a regional presence.
Also, ONS figures for Q1 2015 construction output in the north east showed a drop of £118m against the Q4 2014 figures.
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