News

OFT considers appeals

The Office of Fair Trading was expected to launch appeals against at least some of the Competition Appeal Tribunal rulings that have reduced or wiped out cover pricing fines, as CL went to press.

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Injunction could stop abuse

A Technology and Construction Court ruling has highlighted the ability of the referring party to an adjudication to secure an adjudicator that it likes by withholding the serving referral documentation repeatedly until the adjudication lapses.

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News in brief: May 2011

The Health and Safety Executive is considering plans to charge companies up to £200 an hour for inspectors’ time if they are found to have breached safety laws. The ‘fee for fault’ proposals will be put out for consultation later this year.

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Defence work reorganised

Defence Estates has handed over all of its procurement to a new body called the Defence Infrastructure Organisation, which started operation on 1 April. The reorganisation is part of a drive to achieve savings of over £1,000m over four years on a budget yet to be confirmed.

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Rail revolution under way

Network Rail has announced a radical overhaul of its procurement strategy on £6,000m of railway projects in a bid to cut costs. Earlier involvement of designers and contractors is promised in what Network Rail says represents a revolution in its procurement.

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Cost review plan revealed

The Treasury has released details of the next steps in its drive to save up to £3,000m a year on infrastructure construction costs that was revealed last year in an Infrastructure Cost Report.

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News in brief: April 2011

The House of Commons Treasury Select Committee has launched an inquiry into the future of the Private Finance Initiative which will examine the strengths and weaknesses of different public procurement methods. The inquiry will build on previous inquiries by the National Audit Office and the House of Lords Economic Affairs Committee. Submissions should be made by 28 April 2011.

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PFI pilot to cut costs

A pilot project has been launched at an £835m hospital project in Essex to identify the scope for savings in operational Private Finance Initiative contracts. The contract for the Queen’s Hospital in Romford is being examined by a team of legal, technical and commercial advisers to identify savings that can be applied across the full portfolio of PFI contracts.

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Cover pricing fines slashed

Fines imposed against six construction companies that fell foul of the Office of Fair Trading’s (OFT) investigation into allegations of cover pricing have been slashed by 90 per cent after the Competition Appeal Tribunal agreed that they were excessive and discriminatory.

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Budget seeks cost cuts

Public sector construction and infrastructure procurement are to be reformed under government plans to cut costs by 20 per cent. A series of reform measures are to be rolled out starting in May, according to the Government Plan for Growth document that was published along with the 23 March Budget.

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