New Construction Strategy Aims To Deliver Local Economic Growth

A new procurement strategy launched by the Local Government Association (LGA) will aim to improve access to construction contracts for SME firms.

The LGA launched the Construction Category Strategy (CCS) earlier this month with a view to providing a more focused approach on a key spending area for local government, and a major source of employment.

The CCS expands the LGA's existing National Procurement Strategy (NPS) to expand support for SMEs in what has been identified as a 'priority category'.

Analysis from the Federation of Master Builders found that 41% of construction SMEs failed to win nine out of 10 public sector contracts that they bid for. The CCS will aim to improve these figures.

Councillor Peter Fleming, Chairman of the LGA’s Improvement and Innovation Board, said: "Local government wants to build long-term partnerships with suppliers who we believe can help us deliver significant local growth, increased skills and jobs.

"The Strategy is the first step in addressing the need for a strong collaboration between industry and local government to make sure that local people have the skills required to deliver these projects."

Expert Opinion

This is very welcome news for SMEs in the construction industry, as it will ensure local government works to forge links with small local businesses in a manner which proves mutually beneficial to them. <br/> <br/>"The Government has often referred to the SME community as the lifeblood of the economy and it is vital that initiatives designed to provide them with support continue to develop. We would also urge small businesses to not go it alone when it comes to procurement and contracts, and it is particularly vital they seek legal advice on key regulations to bear in mind in this area." Fergal Dowling - Partner