I read with interest your articles on frameworks and small businesses (14 September, page 26).

There is nothing wrong with clients trying to deliver work through fewer suppliers. The main issue is that frameworks focus on maximisation, rather than optimisation, of benefits. Many public sector clients award one huge contract to a large player as it鈥檚 easy to manage one relationship.

However, there are commercial risks for clients, including value for money, supplier failure and high switching costs. 鈥淏ig鈥� does not always give you the desired level of service and can have hidden costs.

Commercial benefits can flow from frameworks where work is allocated across a number of medium-sized contractors. Economies of scale are still gained, and the contractors have the incentive of increased turnover, steady work flow and negotiated margins. Competitive tension and collaboration are also encouraged. Some organisations achieve greatest success working with SMEs, as they are prepared to work harder to understand clients鈥� needs and are more open to develop and evolve.

Clients would do well to think through the optimum size, number and arrangements of frameworks for their specific demands and objectives. A portfolio of approaches might be more appropriate, perhaps including a number of work packages aimed at SMEs.

It does not serve the industry to cut off tomorrow鈥檚 innovators.

Michael Townsend, chief executive, Earthshine Solutions

Topics