HISTORIC PRESS RELEASE : Better building for Britain getting the best out of Public Sector construction contracts [December 1997]

The press release issued by HM Treasury on 1 December 1997.

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, teamworking 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.