A maximum of just 70% of construction related services could be put out to tender, says a government commissioned r...
A maximum of just 70% of construction related services could be put out to tender, says a government commissioned report.
The Coopers & Lybrand findings contradict earlier research by PA Consultants which suggested 90% of construction related work should be subject to the next phase of compulsory competitive tendering. But most other concerns about the extension of CCT have been dismissed by Coopers. It rejects arguments that the client side be protected from CCT but suggests up to 50% of client side services could be tendered in councils with the biggest spending in this area.
The report also throws out claims that in house client units need to be sufficiently large to protect recruitment and professional expertise as well as handle strategic planning, contracts and compliance. Instead it suggests setting a safety net 'which would enable local authorities to keep in house £350,000 of construction related work or the defined percentage, whichever is the higher'. The report suggests 90% is not practicable as it would require councils to subject more than 50% of client services to CCT. Barnet LBC Chief Executive Max Caller, a member of the DoE/local authority construction related service committee, said: 'The local authority side has been saying all along 90% was totally unworkable'.