Shared procurement team established for London's Square Mile
South East urged to help SMEs win public deals
Procurement in SME catch-22
SME failure rate falls
SME suppliers pushed out of deals
March 2011 | Angeline Albert
The City of London Corporation (CLC) is challenging construction developers
in the area to source 10 per cent of the goods and services for its contracts
from the Square Mile or its neighbouring boroughs.
A local procurement charter
launched by the CLC is encouraging developers and their contractors to support
the economies of local small to medium-sized enterprises (SMEs) through local
sourcing and identifying opportunities for them to tender for work.
The CLC is asking developers
to insert local procurement clauses in tender documents issued to contractors
or subcontractors. Signing the charter and including clauses in contracts to
support SMEs will be a compulsory element of new developments from autumn 2011.
The corporation hopes the
charter, which has already received the support of several developers, will boost
employment in the seven surrounding London boroughs, some of which are some of
the most deprived in the UK. The charter is also part of the corporation’s
commitment to support the estimated 110,000 small businesses in the CLC’s
Research commissioned by the CLC
found developers currently source 4 to 5 per cent of goods and services
locally. The corporation believes there is the potential for builders to raise
this to 13 per cent.
Stuart Fraser, chairman of
the policy and resources committee at the CLC, said the organisation had set an
example for developers by ensuring 24 per cent of its own goods and services
were procured from the city or its neighbouring boroughs.
He said: “When local SMEs secure new contracts they are
able to upgrade production and invest in expansion and job creation –
increasing their capacity to support global trade within our financial centre.”