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BUDGET 2011: Cost of procurement to be slashed by 20pc

The Government has promised the construction industry it will remove as much as 20 per cent of the cost of public procurement.

In a plan set to be published in May, the Government will outline plans which it says will “encourage standardisation rather than bespoke designs, setting clear criteria for asset performance and introducing new models of procurement.”

In the Plan for Growth document released in conjunction with today’s Budget, the Treasury said it would introduce measures which “will enable the construction industry to focus on bringing forward innovative solutions, rather than participating in bureaucratic and wasteful procurement processes.”

The move is the latest attempt to make public procurement less painful for contractors. Last year it pledged to implement a series of measures which it said would push the proportion of contracts awarded to small and medium sized businesses up to 25 per cent.

These included: Seeking to eliminate Pre-Qualification Questionnaires (PQQs) for all central government procurements under £100,000; mandating a standardised core PQQ for all central government procurements over £100,000, where a PQQ is necessary; introducing a Contracts Finder, a one-stop-shop which will display every central government tender opportunity

The Government said it would transparently monitor progress on these policies by publishing the progress of individual departments towards these goals

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