New research has revealed construction targets set by the government are under threat if public procurement does not improve…
A report by the Association for Consultancy and Engineering (ACE) has revealed the barriers facing the construction sector if public procurement does not improve.
In the study, ‘Procurement landscape – wider, challenging, and in need of reform’, ACE examined the investment process and public procurement.
ACE said there were more than 40,000 procuring bodies across the public sector, and it is estimated the UK government procures £230bn of products and services a year. However, there are not enough workers with the necessary skills in procurement.
The report stated: “This research finds that too often parties involved in procurement are trying to enact change as part of the transactional process of buying and not as part of the strategic investment decision-making process which sets many of the high level demands and complex conditions for how projects will be procured.”
Skills shortages in the construction sector have continued to be a growing issue. Experts have warned that failure to address this problem will have a detrimental impact on the industry. However, the report said the construction sector was not just facing a shortage of bricklayers or builders, but also a skills gap in public procurement.
“Just having improved skills at the project level will not solve a skills mismatch, if an investment strategy is flawed from the start, an efficient outcome is not possible,” the report said.
“In addition, there is generally a lack of appreciation at the relevance of skills to ensure the public gets the most out of its investments.”
The report concluded that while “the ability to deliver a project can be constrained by industry, the default ability to deliver a project is dependent on the client’s skills or lack thereof.”
Targets set by the government to cut the cost of construction by a third in a bid to reduce the completion time of new builds, to slash emissions from greenhouse gases, and to reduce the trade gap between construction product imports and exports, are in danger of failing.
The report said: “The targets… are very ambitious, and will not be achieved unless the process of commissioning and procurement is significantly and consistently improved and harmonised across a wide range of clients.
“Only this will deliver an efficient investment process going forward.”
The report forms part of a series on procurement from ACE. Future studies will examine issues such as the impact of devolution on procurement, the importance of skills, and the effect of collaboration between client organisations and industry on pricing.
