Multi-challenges forcing pace on procurement reform

Seldom, if ever, have so many pressures been inflicted on construction at the same time as today. The unpredictable outcome of the UK negotiations to secure trade deals after the current EU deals expire at the end of the year would have been enough on its own to cause consternation in boardrooms across all industries, resulting in investment plans being at best postponed. A no deal Brexit looked like a short odds bet with less than six months to go, with an extension to the UK’s departure unlikely to be requested by a firmly pro Brexit Cabinet.

On top of that came the Covid-19 pandemic impact which was devastating in the short term, but as this was being written, in late July, the economy looked like it was already out of recession and the debate was about how long it would take to get back to pre pandemic levels of aggregate demand. Longer than we had hoped, according to a study from consultants at EY in late July.

At about the same time, the restarted Grenfell inquiry was drawing a picture of a procurement and construction management process that was somewhat less than flattering; little was being heard that would give observers confidence that this was an industry set up to deliver safe, never mind quality, buildings. Also coming up is the move towards net zero carbon emissions, which will have a massive impact on the design, construction and operation of buildings and other assets of all types, which construction will be at the heart of.

Major procurement changes will surely come as a result of all of these pressures, most of them long overdue and recognised as having been good ideas for some time, but probably hastened by the impact of the pandemic. So a Whitepaper on future procurement challenges from procurement services specialist Fusion 21 – ‘Future proofing procurement in 2020 and beyond’ – is timely.

The report was based on a series of webinars held during lockdown involving various experts from the industry and those serving it as well as client representatives. Collaboration, early market engagement and whole life costing were the familiar sorts of issues highlighted.

One challenge to be met post a no deal Brexit will be having a system in place to respond to challenges to contract awards. Challenges that were almost unthinkable not that long ago, because of fear of upsetting potential future clients, are now almost routinely mounted by losing bidders who may have spent a couple of million pounds on their unsuccessful tenders.

The current regulations will have to be replaced speedily, and one potential path might be procurement tribunals, it was suggested by Rebecca Rees of Trowers & Hamlins at a Fusion 21 webinar. One merit of these might be that they would be quicker and cheaper than taking up time at the High Court, although there might in that event be more of them.

The best way to keep procurement challenges out of court is of course to make sure the process is flawless and unchallengeable from the start. But if this pandemic has taught us one thing, it is that UK procurement is often far from competent, let alone flawless. Change is coming, a lot of what passes for adequate procurement now will clearly have to improve; and it won’t be painless.

Nick Barrett
Editor