Square Mile builders set local sourcing goal

22 March 2011
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22 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 fringe boroughs.

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.”  

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