£2bn construction work market under review

THE Scottish Government has launched a review into the £2 billion market for public construction contracts, which has been criticised for preventing many firms from taking part in the bidding process.

The review will be led by Robin Crawford, non-executive director of KPMG, and Ken Lewandowski, a former Hibernian chairman who also headed up Clydesdale Bank’s financial solution centres in Glasgow and Edinburgh.

The Scottish Building Federation recently described the current procurement system as a “lottery” for those looking to win public contracts, and said costs were “prohibitively high” for two-thirds of firms.

Deputy First Minister Nicola Sturgeon said the review, which is expected to be completed by next summer, will examine how the current system can be improved so public bodies can deliver better value for taxpayers’ money and help support jobs in the construction sector. It will also look at the use of “eco-friendly” building methods.

Crawford, who will chair the review, said: “In the current economic climate it is essential for both the industry and its clients that the procurement system operates as efficiently as it can. I am determined the review will identify what needs to change and will put in place measures that ensure the necessary improvements are delivered.”