RIAS Calls For Radical Overhaul of Construction Procurement in Scotland
“A generation of Scottish talent is being squandered”
On 8th December 2011 the RIAS’s President’s Commission on Procurement published its report. This review, over a year in the making, reveals that architectural procurement in Scotland is very costly, highly inefficient and damaging to Scotland’s economy. This is at a time when public projects are vitally important for local employment and to the micro-organisations and small and medium sized enterprises (SMEs) which employ most of the workforce within the construction industry.
The report, by a committee chaired by Roy Martin QC, examines evidence commissioned by the European Parliament and the Westminster and Scottish Governments, alongside data from academic sources and commissioning bodies. It indicates that the UK has the second slowest construction procurement in Europe (the slowest is Greece) and that to commission a project worth £130k in architect’s fees can cost the public purse an additional £70k and bidders a further £240k in venture costs. This inefficiency has a direct impact upon construction employment in Scotland.
The Commission recommends that the Scottish Government issues new, brief guidelines to all commissioning bodies relating to projects which sit below the European threshold. It also seeks a radical revision to the lengthy and cumbersome pre-qualification questionnaire process which is a demonstrable drain on resources and does not achieve best value for the public purse. The report also recommends a short, sharp Government review involving industry organisations, towards amending procurement processes which are failing Scotland badly.
RIAS President, Sholto Humphries, commented:
“The Commission’s report reveals that much that is being done with the best of intentions and in the interests of fairness is having exactly the opposite effect. Small practices, which make up most of the profession in Scotland, are virtually excluded from the vast majority of public projects. The resources required simply to submit a tender are forcing many capable, talented and experienced practitioners to look elsewhere (either to the private sector or outwith Scotland) for work. A generation of Scottish architectural talent is being squandered.
Tens of millions of pounds are being unnecessarily wasted by the public purse and by practices across the UK. It would be relatively simple to issue new guidance for projects below the European thresholds and to ensure proportionate tendering for projects above these levels. We urge the Government to radically review construction procurement as soon as possible. Otherwise many more small construction businesses will go to the wall.”
The RIAS President’s Commission believes that Scotland can become an exemplar for good commissioning of high quality buildings. It wants to work with Government to achieve this for the benefit of the economy and the people of Scotland.