GCS latest: The government has been urged to overhaul its procurement policy to enable more SMEs to win public work

GCS

Steve Hindley, chairman of Midas, told a panel discussion at the Government Construction Summit in London today that frameworks were unfairly excluding SMEs, particularly in the regions.

Hindley said: 鈥淚 do have a concern that some government frameworks are precluding all but the larger firms.

鈥淚 urge them to review how they procure, particularly in the regions.鈥�

Hindley also questioned the argument often advanced by government that money trickles down the supply chain from larger firms to small firms.

He said: 鈥淭he government imagines it鈥檚 like Russian dolls and money passes from large to small firms but it鈥檚 not always the case.

鈥淩eally it passes from generalists to specialists, and they may not be smaller.鈥�

Trade and industry minister Lord Young singled out the construction industry as the UK鈥檚 least efficient sector: 鈥淐onstruction is the one area where we have to make it more efficient, particularly for the public sector.鈥�

He also said the government is having success using SMEs: 鈥淲e have seen some fantastic savings when SMEs have bid and won.鈥�

Simon Kirby, chief executive for construction at HS2, said the project should work closely with the 2025 industrial strategy: 鈥淭he HS2 first phase is scheduled to open in 2026, a year after Industrial Strategy for 2025 target.

鈥淚t鈥檚 a massive opportunity for the construction industry. In 2026 we don鈥檛 just want to open a great project, we also want to help achieve a step change in the industry.鈥�

Kirby welcomed legislation to help enforce prompt payment. 鈥淎ny legislation to support prompt payment is good,鈥� he added.

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