The commercial sector is seeing an increased use of framework agreements and PFIs, which ECA members say is affecting tendering opportunities.

The main issue is that once a framework contractor or a contractor within a PFI has been appointed, it may then use the same panel of specialist subcontractors for the duration of the agreement. This panel can be quite small. Both major contractors and small and medium-sized enterprises are noticing these trends, with the latter probably feeling more exposed.

Compounding this concern is the use of partnering arrangements between client and main contractor, which do not cascade down the supply chain. Indeed, members report that competition is even fiercer within these arrangements. This is encouraging bad practices such as second-round bidding, overlong tender lists, and the provision of “free issue” material when the contractor is expected to take responsibility for quality and performance.

Via a questionnaire recently sent to some members, the ECA is trying to establish the extent of these problems. If you haven’t yet submitted your reply, it’s not too late. Once fully informed of what members are experiencing at the procurement stage, the Association will be better placed to take appropriate action.

Source

Electrical and Mechanical Contractor