Another revolution in government procurement has been launched, this time by the Cabinet Office. There have been a few over the years. The view that UK central government procurement is a shambles is by now strongly entrenched throughout the industries that have to rely to any extent on public sector work. Scepticism can be excused in response to this latest move.
Chancellor Philip Hammond has surprised few with his Budget announcement that the Private Finance Initiative (PFI) is to be no more – the share prices of contractors and infrastructure funds were untouched by the news.
MPs on yet another select committee, the House of Commons Transport Select Committee, have slammed public sector procurement practices and skills, this time after an investigation into the failed Intercity East Coast rail franchise
Society of Construction Law members can now have a unique 10% multi-year discount on subscriptions to the print version of Construction Law following an agreement between publishers Barrett Byrd Associates and the SCL.
Approval of the performance of mediators among lawyers is fairly high, with about 80% of them getting a nod of approval in a bi-annual survey – or Mediation Audit – from CEDR (see News). Which means that around one in five of them didn’t perform up to lawyers’ expectations, for which of course there could be many reasons, such as the mediation didn’t go quite the way the lawyer hoped.
News that Network Rail is to banish retentions and move its future projects onto a Project Bank Account set up is welcome news, especially for Tier 2 contractors in the wake of the Carillion collapse.
Is your lawyer or commercial adviser up to giving you the advice you need in order to incorporate Building Information Modelling (BIM) into your contractual relationships?
Proposed legislation to protect retention monies in the event of insolvency will soon receive its second reading in the House of Commons and will then progress to detailed Parliamentary discussions in a committee stage, unless rejected by MP’s.
The proposed launch of a £30bn contractors framework could normally be expected to set pulses racing in any industry, with everybody keen to learn the details of the procurement process. When it is being launched by the Crown Commercial Service (CCS) however everybody stops holding their breath.
What the long-term fallout of the Carillion debacle will be is hard to predict, but it has at least shone a spotlight on the Private Finance Initiative (PFI), as well as the associated large, long term contracts that can bring contractors down if they go wrong.