Scape Group’s revamped £5.5bn national construction framework has been criticised for being structured so that it excludes SMEs and small businesses from bidding.
Construction Alliance Northeast (CAN), made up of 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, has criticised the structure of the framework.
Scape’s new framework moves from having a single contractor, Willmott Dixon, on its current Major Works Framework, so having “multiple providers” bidding for five different lots.
"It would seem with five lots covering such large regions that either Scape is deliberately trying to restrict the number of contractors able to apply or is assuming that large, national contractors will qualify because their supply chain can be located at a reasonable distance from their bases."
Douglas Kell, Construction Alliance Northeast
The new construction framework comes into effect in May 2017.
Douglas Kell, secretary for CAN, said that the announcement initially triggered eager anticipation among SMEs up and down the country. But further investigation showed that all interested parties must have a turnover exceeding £125m, even for the smallest banded lot, for projects worth £2m-£20m in England and Northern Ireland, thus excluding smaller firms.
On average, Kell said, SMEs’ annual turnover does not exceed £40m, leaving many firms out of luck.
“Once again, public sector procurement is still weighted in favour of the national contractors,” said Kell. “I know that a typical area of operation for an SME is about one hour’s travel time from its base. So it would seem with five lots covering such large regions as UK-wide, Scotland and Ireland that either Scape is deliberately trying to restrict the number of contractors able to apply or is assuming that large, national contractors will qualify because their supply chain can be located at a reasonable distance from their bases.
“This means that SMEs will only be able to aspire to the role of Tier 2 contractors or otherwise Scape has a lack of understanding of construction logistics.
“So much opportunity to undertake regional public sector construction projects has all but been removed for regional SMEs over the last few years as a result of frameworks like this, particularly when government is so keen to support the SME sector.”
But Scape’s procurement manager said that the turnover requirement was in “no way a barrier to SME involvement”, as SMEs could bid for the national construction framework in collaboration.
John Simons said: “SMEs can collaborate and bid in a joint venture or consortia arrangement, ensuring that an organisation of an appropriate scale, skill and scope is appointed to deliver the volume of projects facilitated by this framework – a point which will be emphasised in our upcoming framework market awareness sessions.”
He added: “The national construction framework, as with all of our frameworks, is designed to include micro, small and medium-sized enterprises at all stages and our track record of extensive SME engagement is proven.”
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