The first job Pengelly faces is to implement prime contracting, the framework contract developed by Defence Estates, which has come under fire from the construction industry since it was proposed in 1999.
Contractors have objected to fitness-for-purpose conditions and to the stipulation that subcontractors must be paid before the main contractor qualifies for payment from Defence Estates. Only a handful of prime contracts have so far been awarded, prompting complaints that it is taking too long to develop.
I’m aware of complaints but there are lots of inefficiencies in construction procurement
Michael Pengelly
Pengelly said: "I'm aware of complaints but there are lots of inefficiencies in construction procurement. This form of procurement has the normal commercial discipline in other industries and I will carry forward the good work of Ted."