Government procurement still poor, says SEC Group

Following an extensive survey of specialist engineering contractors, the SEC Group has revealed that since 2000 there has been no improvement and often worsening levels of satisfaction with the procurement practices on government projects.

Only 38% of contractors expressed satisfaction with contractual terms on the majority of projects, compared to 48% five years ago. Some 57% of firms experienced payment delays and abuse on either the majority or at least half of their projects: this rose to 62% for firms in the turnover band between £0.5-1 million.

Only 7% of firms stated that they had been appointed early on the majority of projects. 44% said their health and safety record had not been taken into account on the contract awards on any projects they had been involved with.

Trevor Hursthouse, SEC Group chairman said: "The undoubted commitment of government clients to improving procurement and contractual practices within the supply chain has still to be translated into action."

To this end the SEC Group has sent a report to Des Browne, Treasury chief secretary, on the procurement practices of government projects. It includes an action plan for the Office of Government Commerce (OGC) and all government clients. This states a number of objectives, including:

• OGC to develop a best practice charter, adherence to which would be a condition of selection of all firms engaged on government works;

• Project bank accounts to be established for all projects coming onstream;

• OGC or, alternatively, all procurers, to establish a review panel to deal with complaints of poor practice;

• All government procurers to outlaw the use of bespoke conditions of contract down the supply chain;

• The practice of retentions to be eradicated by 2007 on all government projects.