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National Highways flexes muscles on the power of procurement with a threat to exclude poor perfomers

Updated: Mar 14, 2023

National Highways has shown its hand around the power of procurement with a threat to exclude poor performing companies from bidding on future works.

In an interview with Construction News, Malcolm Dare, Executive Director for Commercial and Procurement said that the Government-Owned company is "extremely likely" to follow a stringent assessment of suppliers on the new £30BN Integrated Delivery Framework.

Having stated that this process proved successful as a part of the soon to end Regional Delivery Programme, which resulted in poorly performing organisations being unfavourably viewed, Mr Dare unveiled that the approach was something which the Organisation would seek to expand across its procurement.

"In the last 12 to 18 months, there have been cases where we've told suppliers 'you're not eligible to bid for this," he told Construction News.

"Based on performance there is a clear supplier who is top dog and they will get awarded the work, or we run a mini competition with two or three suppliers and they bid for the work... We've excluded others who have not performed to the required standard and that will continue."

Although a consultation period remains around the new IDF framework, Dare indicated that he wishes to see future contracts awarded based upon past performance,

He continued, " I can't say it will definitely be in IDF because we've got to go through consultation and due process, but its extremely likely that it will be based around (an assumption) ' those that perform the best will get the work and those that don't perform to the required standard will get no work."

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