Welsh public sector construction and FM procurement strategy will save £5.7 million

Will Green is news editor of Supply Management
19 June 2014

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19 June 2014 | Will Green

The Welsh Government has launched a new strategy for the procurement of construction and facilities management (FM) that is expected to save £5.7 million a year.

The Construction and Facilities Management Strategy, part of the National Procurement Service (NPS), involves ensuring consistency of pricing across the public sector and tasking suppliers to come up with efficiency proposals and measures promoting social benefits.

Each year £180 million is spent in these areas in the Welsh public sector and so far 40 suppliers, with more expected to follow, have come up with ideas that could be fed into the strategy.

Finance minister Jane Hutt said: “The construction and FM industry has a vital part to play in supporting our economy. We want to work with businesses across Wales to get the best value for the public sector. As well as helping the public sector save money we also want to make tendering for Welsh government contracts more accessible than ever before, particularly for SMEs and third sector organisations.”

Hutt said 73 public sector organisations, including local authorities, health boards and emergency services, had now signed up to use the NPS.

“We know that public expenditure faces significant challenges but innovations like the NPS are key to getting value from Welsh public procurement and to looking after the future of our public services,” she said.

The NPS was launched last year and is expected to save the public sector £25 million annually once it is fully operational. It will focus on six main categories of common and repetitive spend that account for £1.8 billion worth of public expenditure annually. 

Sue Moffatt, director of the NPS, said: “Our Construction and FM Strategy will deliver £5.7 million savings, representing 20 per cent of the annual NPS savings target. It will play a key role in getting the most of the Welsh pound and the maximum benefit for the Welsh citizen.”

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