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A changing procurement landscape

Recent questioning of 21 buyers from public sector-funded healthcare organisations on changing attitudes to procurement since last autumn’s Comprehensive Spending Review reveals that, although under half have had to cancel construction work, a third plan abandoning framework arrangements in a bid to cut costs, and 40 per cent plan asking contractors to cut prices.

Constructionline – the UK’s largest register of pre-qualified contractors and consultants – surveyed over 130 registered users of its service from across Great Britain. Unlike their local government or social housing counteparts, publicly-funded health bodies said they had been able to retain a larger percentage of their construction work, albeit with 43 per cent forced to shelve projects. However, 92 per cent faced reduced construction budgets, leading many to consider changing current procurement practices. A third planned decentralising procurement responsibility, and a similar proportion to retender for existing projects. Philip Prince, a Constructionline director, said: “Given its property portfolio’s size, stringent sustainability requirements, and service delivery standards, the NHS cannot afford to cancel a lot of its essential maintenance work despite seeing its construction budget reduced. The resulting big changes in the way it procures construction services provide an opportunity for serious consideration of new suppliers and innovations.”

 

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