News

News in brief: June 2011

Contractors might have to sign up to a charter to protect supply chains from unfair practices on public sector work as a result of changes in the way the government deals with major suppliers.

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James slams procurement

Public sector procurement practices for capital investment have been heavily criticized in the long awaited James Review of investment in schools.

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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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