Procurement of construction projects in local government

This paper provides an evaluation of changes in procurement of capital projects in local government in recent years. These changes have been driven partly by changes in legislation regarding compulsory competitive tendering, best value and more lately prudential finance legislation. They have also been driven by developments in industry procurement practices, particularly following publication of the Latham and Egan reports. Results of research seeking to assess current practice regarding procurement of capital projects in local authorities following publication of the National Procurement Strategy in October 2003 are presented. The organisation of the procurement function, use of standard forms of contract, e-procurement, capability and arrangements for procurement-related training are discussed including use of external consultants. The overall conclusion is that local authorities are at various stages of development regarding implementation of the National Procurement Strategy. Although most of them have in place training arrangements to develop skills of technical and procurement staff, many local authorities will continue to use external consultants. Moreover, 75% of local authorities see use of external consultants to provide professional advice in various elements of project procurement as a long-term measure.