29 May 2007 | Paul Snell
Cement for the construction of Olympic venues will be provided by a single supplier.
The deal, which will go out to tender in August, will see one supplier given an exclusive license to supply ready-mix concrete to all contractors working on the Olympic park. The supplier will then be allowed to negotiate prices with individual contractors, under the supervision of the Olympic Delivery Authority (ODA).
A spokesman for the ODA told supplymanagement.com this method was chosen as it offered the best option for improving the efficiency of supply and delivery and provided a guarantee of supply for contractors.
Many of the contractors for building work on the Olympic park have not yet been selected, but the ODA said it had held a number of "industry days" where it consulted with a range of potential contractors.
David Higgins, chief executive of the ODA, said: "This is a key contract for us and will help ensure consistency of supply and stability in price. Using just one supplier for a project of this size is a ground-breaking move but the industry is up for the challenge."
The ODA spokesman said it was possible similar deals would be struck for other construction materials, but it would depend on further consultations.