According to the Office of Government Commerce (the OGC), the Government aims to save £21.5 billion in 2007 and mostly through more efficient spending in the public sector. Governments view is that managing procurement better can make a critical difference towards this target. With this in mind the OGC offers a range of resources with the aim of assisting the public sector to get more from their own procurement budgets which includes streamlining the way the public sector buys goods and services.

Relevantly, the DTI runs Constructionline which is the UK's register of prequalified local and national construction and construction related contractors and consultants. The aim is to provide a tool to help the public sector to develop an efficient procurement process.

Background

Constructionline gathers and assesses prequalification information on behalf of public and private sector procurers. Details of more than 12,500 accredited suppliers are available. The system is seen as a two way process. More than 1,500 buyers from large central government departments and agencies to Local Authorities, Housing Associations, Universities and NHS Trusts have signed up to the system to have direct access to the prequalified construction related contractors and consultants.

The system also aims to assist contractors, ranging from sole traders and small specialist firms to large multi nationals and consultants (Supplier), by reducing the need for them to complete pre qualification forms for every tender that is of interest to them. Such a single national database was first proposed by the 1994 Latham Report which reviewed ways to modernise the construction industry and improve efficiency resulting in the report entitled Constructing the Team.

The OGC Common Minimum Standards and the Local Government Task Force recommend using Constructionline as part of the pre qualification and tendering process. In summary, the OGC published Common Minimum Standards, to be followed by all central government departments which should be applied to all construction procurement under their control. The standards have been agreed by Ministers and compliance with them is considered to represent cost effectiveness. Procurers are expected to comply with the standards unless they can clearly demonstrate that one or more of them falls outside the specified criteria of practicability, achievability and value for money. Given this, it is understood that in the majority of circumstances the Constructionline system is adopted by central government departments dealing with construction procurement.

Summary of the process

The Constructionline process involves:

Firstly, the relevant party completes the relevant application forms which are available on-line. The buyer application form requires the name, address etc to be supplied.

Initially the seller’s application form requires the same basic information as the buyer’s along with basic information about the company - date it was set up, company number etc. Once this form has been submitted the seller must complete a more detailed form. As Constructionline is a government initiative, there are mandatory rules determining what information must be provided by a supplier wishing to join the register. The information that must be provided includes full annual accounts (to be assessed by Constructionline’s in-house accountants), a number of references for each sector for which a supplier wishes to be registered and a certificate of incorporation for all public, private limited companies and limited liability partnerships.

Secondly, the prospective supplier’s information is assessed by Constructionline to allow them to determine if the details provided are acceptable and if the prospective supplier should be approved and added to the register. The majority of this information is then made available to potential buyers online. The areas of work or trade in which a supplier operates, their insurance and tax details are all then available to be viewed by members of Constructionline. Having reviewed a supplier’s accounts, Constructionline recommend a maximum value of work that they believe the supplier is capable of completing. This process takes about 2 weeks.

Case studies from both buyers such as Edinburgh University and suppliers are available on-line providing feedback to users.

Guides are available to assist interested parties to access and use the basic functions of the system such as finding a supplier, viewing supplier’s details and running a supplier list.

Further details can be found at http://www.constructionline.co.uk

If you have any concerns regarding procurement then please contact Catherine Kay at catherinekay@georgedavies.co.uk.

Disclaimer

The content of this article does not constitute legal advice. You should always consult a suitably qualified lawyer for professional advice about any specific legal matter of concern to you. George Davies Solicitors, its partners and staff do not assume any responsibility for information contained within this article and disclaim all liability relating to such information.

About George Davies Solicitors

George Davies was highly rated, in the North West, in nine different categories of the 2005 Legal 500 review and in Chambers and Partners UK Directory. They specialise in all aspects of commercial law and boast a substantial Property Department within which sits a niche Construction team with experience in a full spectrum of construction law services. The firm was commended in the Legal 500 for their strong movements forward in a variety of property and construction deals and Chambers specifically mention its achievements in Construction. The Head of Construction, Catherine Kay can be contacted on 0161 234 8861 or emailed at catherinekay@georgedavies.co.uk

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