A pilot project, developed
by the Federation of Master Builders (FMB Cymru) and supported by the Wales
Co-Operative Centre and Caerphilly County Borough Council Council’s Supplier
Relationship Officer, has seen a group of four businesses celebrating their addition
to a potentially lucrative framework agreement.
The
Construction Enterprise Pilot Project (CEPP) was piloted in the
South Wales Valleys area, with the aim of expanding the project to the rest of
Wales in the longer term. The project aim was to practically support
smaller builders to be able to bid for public sector contracts more
successfully.
The successful consortium,
Allied Construction Consortium Ltd, is made up of four partners who offer
complementary building services in the South East Wales area. Rend Right Ltd
offers rendering and insulations services, SD James Construction offers general
construction and building services, CX2 offers quantity surveying and health
and safety services and Huw Jones who brings finance, corporate strategy, accountancy
and IT Services to the consortium.
Allied Construction
Consortium Ltd. was accepted on to the Caerphilly County Borough Council
Framework for supply and delivery of labour and materials for the External
Works, Labour and Materials for the Welsh Housing Quality Standard Programme
for works packages above the value of £750,000. The project made use of a new
Joint Bidding Guide, developed jointly by the Welsh Government.
Ifan Glyn of FMB Cymru
commented:
“FMB
Cymru members, and smaller construction companies in general, are often
frustrated that they’re unable to win contracts because of their size. At
the same time, they would see contracts being won by larger companies and for
that work to be sub-contracted to smaller builders anyway. We started the
CEPP project to ensure that smaller construction companies in Wales have a fair
chance to win contracts for themselves, and joint bidding was one option.
“Suppliers
and procurement bodies in Wales often suggest that joint bidding is desirable,
yet there’s very little evidence of this actually happening. Suppliers
feel that it’s a gamble and are unsure how to bid with other businesses, while
public bodies are often wary of joint bids and are unsure how to facilitate
them. It was clear to FMB Cymru that something could be done to support
joint bidding, and this is why the CEPP was developed.
“Allied
Construction Consortium Ltd. has shown that not only is joint-bidding possible,
but it’s also a successful process. We hope to develop this pilot project
in the future, so the lessons learned can benefit businesses and procurers all
over Wales. We would like to congratulate Allied Construction Consortium
Ltd. and hope their work will inspire others in the future.”
Jane
Hutt AM, Minister for Finance said:
“I am delighted that a new consortium of four businesses
has been successful in securing a place on this framework. In working
collaboratively with partners to produce the Joint Bidding Guide, the Welsh
Government has shown the value of joint working, and its commitment to removing
barriers that prevent Wales-based businesses from winning contracts in the
public sector. I am hopeful that this early success will encourage more
businesses to work together to bid for and win contracts, and I want to see all
of our public sector organisations in Wales encouraging and welcoming
consortium bids.”
Paul Cantrill, who is a
business consultant for the Wales Co-operative Centre, and supported Allied
Construction Consortium through the process, added:
“It is
often tough for small and medium sized businesses to compete for large public
contracts in Wales as often they do not have the size, capacity and turnover in
their own right to service those larger contracts effectively. Consortia
working can increase businesses capacity to service these large contracts and
can help overcome many of the barriers small businesses can face when they are
trying to grow.
“We were
delighted to work with the partners in the new Allied Construction Consortium to help
them come together and work out how the new business would work to the benefit
of all the partners”.
