HISTORIC PRESS RELEASE : Better value for money in public sector construction contracts [September 1997]

The press release issued by HM Treasury on 26 September 1997.

The first three of a series of draft guidance documents to Government Departments preparing public sector construction projects have been forwarded to the Construction Industry Board (CIB) to take the views of their members, the Treasury announced today.

The consultation exercise between the Treasury and the construction industry is a significant step forward in public sector contracting with the construction industry.

It will lead to better value for money for the taxpayer as public sector building contracts become better and more consistently prepared and presented within a commonly used and understood framework.

Publication of the draft guidance marks clear progress by the Treasury in developing a practical dialogue between construction contractors and Government clients.

CIB Chief Executive Don Ward said :

“In the past, the construction industry has not had the opportunity to help Government get this sort of guidance right. The culture change evident in asking CIB members for their views is very welcome. I strongly commend the Treasury for it, and look forward to industry representatives making a positive input.

“I am also pleased to see that the Treasury draft guidance adopts the principles on which CIB’s own guidance is based. It is important that construction clients in both the public and private sector should be taking these Codes as their starting point to improve construction performance “.

The guidance covers :

• roles, responsibilities, qualifications and training of key client project team members.
• a value for money (VFM) framework to identify key activities for achieving VFM .
• a new “approval gateway” concept to prevent projects proceeding without specific management structures and key activities for achieving VFM.
• the appointment of consultants and contractors on the basis of quality and price.

The Government Construction Client Panel (GCCP) will endorse final drafts of the documents after receiving views from the construction industry. Further draft guidance will be issued for consultation in 1998.