Councils' purchasing group reforms policy to help SMEs

Dom Browne
31 August 2017
 

The North East Procurement Organisation (NEPO) - made up of 11 member local authorities - has reformed its policy to offer more of the region’s smaller firms chance to bid for work.

Presently only seven civil engineering firms are on the tender list. These are Balfour Beatty, Esh Construction, Galliford Try, Graham Construction, Interserve, ISG and Kier.

”Local

Other interested firms are being advised to register now as under the revised policy, smaller builders will get their chance.

NEPO said at least six firms will be appointed for nine lots coming up for bid as the new four-year framework takes effect from next April, with the option to extend for 24 months more.

The new lots comprise:

  • Northumberland, Tyne & Wear and Durham — up to £2m
  • Tees Valley — up to £2m
  • Northumberland, Tyne & Wear and Durham — £2m-£5m
  • Tees Valley —£2m-£5m
  • North East — £5m plus

Housing (less than 25 plots)

  • Northumberland, Tyne and Wear and Durham — up to £2.5m
  • Tees Valley — up to £2.5m
  • North Yorkshire — up to £2.5m • Cumbria — Up to £2.5m
  • Cumbria — Up to £2.5m

Stuart Miller, director of the Civil Engineering Contractors’ Association (North East) says: 'More opportunity for smaller firms in public sector bidding makes for double incentive now, since Newcastle City Council – one of NEPO’s 11 member authorities - has already announced work to start soon on a £10m phase of improvements for its road networks. These were due to start a year ago and will be part of a £60m programme across the city.

'Local contractors are welcoming NEPO’s new lot sizes, which they believe will help drive quality and innovation, and we hope a good throughput of work will come via the portal. We hope also that clients will focus on social value, and help ensure fair payment practices throughout the supply chain.'

The policy change is made possible by separating housing from public building specialisms and is accompanied by a NEPO invitation for companies to enter bids in a £300m regional workload over the next four years.