Nicola Sturgeon orders review of ‘constipated’ procurement system

A “ROOT and branch” review of the way Scotland’s £2 billion public construction contracts are handed out has been ordered following complaints that a lack of major building projects “on the ground” is strangling economic growth.

Recently appointed infrastructure secretary Nicola Sturgeon said today that the review will look at how public bodies which give out major construction contracts adopt practices that are streamlined and deliver value for taxpayers’ money.

Leaders of the country’s ailing construction industry have complained that the system is “constipated” and many firms don’t even bother to bid for major public contracts to build hospitals and schools.

Robin Crawford, a non executive Director and a former forensic partner in KPMG LLP and Ken Lewandowski, former Chairman of the Clydesdale Bank Financial Solution Centres, have been appointed to lead the review.

Ms Sturgeon said today: “We are working flat out to maximise investment in infrastructure projects and to improve the way the procurement system operates.

“This review will play a fundamental role in paving the way forward for our construction sector, helping to support jobs, to promote sustainable working practices and, most importantly, reaping maximum gains for Scotland’s economy.”

Scotland’s public bodies spend over £9 billion each year on procurement. Construction contracts account for more than £2 billion of the total spend.

Michael Levack, chief executive of the Scottish Building Federation, warned MSPs recently that Scotland still has a “constipated” public procurement system.

The Scottish Future’s Trust was set up by the Scottish Government to co-ordinate councils’, health boards’ and the Scottish Government’s spending on major building projects with the aim of securing the best deal for the taxpayer, but .

But Mr Levack said its delivery “on the ground” in recent years has been “very slow.”

Mr Crawford said: “Clearly, 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.

“We will draw on the best examples of good practice in procurement in both the public and private sectors and will take account of earlier relevant reports on aspects of this issue.”

The review is expected to be completed by summer 2013. It will also address the use of cutting edge design and technology, energy efficient techniques, materials and eco-friendly construction methods.