Optimism for the construction sector?

The Construction Products Association (CPA) has produced an interesting report highlighting the current status of the UK Construction Sector, and although there are some major causes for concern – there are at least some signs of optimism for the industry.

The construction sector is an important cog of the UK economy. There are 1.5 million people employed in it and it contributes roughly 10% of the UK’s GDP.

The unprecedented economic downturn of the last few years have presented yet another obstacle for the sector to overcome – this time things are a little different though, there has been very little good news for the sector in three years and the fall in activity has been the sharpest in 35 years. Here are some of the key figures from the report:

Problems:

• A 3% decline in construction activity during 2010 (last year dropped 12%)
• 2011 until any growth is expected, with only 1% a year in 2011, 2012 and 2013
• Since November 2008, private sector construction fell by almost 20% (a further fall of 4% is anticipated during 2010)

Opportunities:

• A growth of 32% in private house building expected between 2010 and 2012
• A boost from infrastructure work in the regulated sectors of rail, water and energy sectors
• London Olympics work ongoing
• Value of road building projects has increased fourfold
• A quick look on the Tracker website shows that there are currently 2996 construction contracts in their database
• £16bn Crossrail project
• £1.1bn for electrification of the Liverpool-Manchester line
• £100m prison being built in East Dunbartonshire

Is there reason for optimism for the future of the UK construction industry?

OJEU - Reform Required?

The sheer scope and complexity of the OJEU obviously brings with it certain difficulties (the journal is udated every working day in the 5 different languages of the EU). Some of the main issues with the OJEU that most business owners hav include:

• Volume - Due to the sheer volume of opportunities on offer, it can be difficult to locate those tenders which directly relate to your business needs and capabilities.
• Overlap - Many services and sectors overlap, therefore it can be difficult to locate individual categories within the journal that you may wish to focus on.
• Translation - Most OJEU notices are submitted in the language of the country where the tenders have originated in. The service which is used to translate these tenders is automated directly from the source language. This can led to confusion over the exact nature of the opportunities on offer.

These are some of the main concerns with the OJEU that have led many leading business commentators and politicians within the EU to call for full scale reform of the OJEU process.

If anyone has any other insights into the document, please don't hesitate to comment.

Tendering Considerations

Has it ever crossed your mind how the public sector chooses its partners? For example, who does the public sector rely on when it comes to recruiting staff or obtianing services? Who will be collecting the bins? Who builds the new office block? Who supplies the stationery or even sugar for the NHS!? Who will clean our hospitals? The answer is that it’s all done through the tendering process.

Considering tendering

If your business is considering tendering, then there are a few questions that you need to ask in order to establish whether tendering is an achievable option. Some points that should be considered would be:

Know the client

It is vital to be knowledgeable about who you are talking to. Getting data on the potential client enables you to enter the mindset of the business or organisation. What is the reputation of this buisness? can you work with them easily? or do you forsee some issues arising? and above all, are you confident that you can meet their standards?

Tendering details

What size is the tender? Is the tender possibly too much for your business to take on or conversely could you do a little better? Do you have the time to tender in a thorough manner?
Coming up with an effective tender is a detailed process, do you have the time and resources to construct a worthwhile case? A rushed proposal could damage any future tendering that you may wish to pursue.

Is the location right?

Can you deliver an effective service in the tender location?
Has you business sufficient experience?
Do you have a list of tendering refernces to call upon from previous work?

Obviously, a great deal of the public sector tender opportunities out there require that your company has sufficient experience of previous work.

These are just a few considerations that sohould be taken into account if you are considering entering a tendering process. When you are satisfied that you can meet most of these criteria then you can check some of the online tenders notice services for the latest opportunities.

Public Sector Must Keep Public Sector Thriving

Economic analysts have advised that any possible drastic spending cuts under a future government, might put the private sector under duress, especially in areas of Britain which are traditionally reliant on public investment as the main source of employment such as Northern Ireland, and the Highlands and Islands of Scotland.
Though not every side of the political divide fully agrees with this view, as the Shadow Secretary of State for Northern Ireland Owen Paterson, has stressed the need to convert the Northern Irish economy away from its reliance on public spending, and "turn Northern Ireland into an enterprise zone" should the conservatives win the election.
This would be done by cutting business rates in order that new companies would be attracted to the area, whilst also facilitating new home based business ventures.
This seems simple enough however it does not cover the fact that during the recent downturn, many Northern Irish businesses and jobs were kept viable by the large number of public construction contracts which were awarded to Irish companies in recent years, which would have almost certainly never have been mirrored by inward investment.

The Countries of Europe

If like thousands of businesses throughout Europe you are looking to bid for tenders, it can at times be useful to look outwith your normal geographical boundaries for potential business opportunities. It could be that your business type is suited to exploiting many of the tenders that are available abroad.

Within the European Union (EU) there are no fewer than 27 member states with a combined population of almost 500 million people, generating 30% of the gross worlds product.

Established by the 1993 Maastricht Treaty, the EU was built upon the foundations of the European Community.

Here is a list of EU Member states at present, together with their time of joining and whether they have adopted the Euro currency.

1. Austria - Member since 1995 (Euro currency)


2. Belgium - Pre-existing member (Euro Currency)


3. Bulgaria - Member since 2007


4. Cyprus (Greek) - Member since 2004 (Euro currency)


5. Czech Republic - Member since 2004


6. Denmark - Pre-existing member


7. Estonia - Member since 2004


8. Finland - Member since 1995 (Euro currency)


9. France - Pre-existing member (Euro Currency)


10. Germany -Pre-existing member (Euro Currency)


11. Greece - Pre-existing member (Euro Currency)


12. Hungary - Member since 2004


13. Ireland - Pre-existing member (Euro Currency)


14. Italy - Pre-existing member (Euro Currency)


15. Latvia - Member since 2004


16. Lithuania - Member since 2004


17. Luxembourg - Pre-existing member (Euro Currency)


18. Malta - Member since 2004 (Euro currency)


19. Netherlands - Pre-existing member (Euro Currency)


20. Poland - Member since 2004


21. Portugal - Pre-existing member (Euro Currency)


22. Romania - Member since 2007


23. Slovakia - Member since 2004 (Euro currency)


24. Slovenia - Member since 2004 (Euro currency)


25. Spain - Pre-existing member (Euro Currency)


26. Sweden - Member since 1995


27. United Kingdom of Great Britain and Northern Ireland - Pre-existing member

In addition to these existing member countries, there are a number of eastern states who wish to join the union, including Ukraine and Turkey.

Have you recently done business outwith your home country in the European Union? Tell us of your experiences.............

OJEU Thresholds 2010

The latest OJEU thresholds came into effect on January 1st this year. These are the levels at which contracts must be published in the OJEU, and are updated every two years.

Here are the levels for 2010 to 2012 - see the bottom of this post for more information sources on this topic, including WTO and EU legislation on how these thresholds are calculated.

Public contracts from January 2010

	SUPPLIES	SERVICES	WORKS
Schedule 1 entires	£101,323 (€125,000)	£101,3232 (€125,000)	£3,927,260 (€4,845,000)
Other public sector contracting authorities	£156,442 (€193,000)	£156,442 (€193,000)	£3,927,260 (€4,845,000)
Indicative Notices	£607,935 (€750,000)	£607,935 (€750,000)	£3,927,260 (€4,845,000)
Small lots	£64,846 (€80,000)	£64,846 (€80,000)	£810,580 (€1,000,000)

Utilities contract thresholds from January 2010

	SUPPLIES	SERVICES	WORKS
All sectors	£313,694 (€387,000)	£313,694 (€387,000)	£3,927,260 (€4,845,000)
Indicative Notices	£607,935 (€750,000)	£607,935 (€750,000)	£3,927,260 (€4,845,000)
Small lots	£64,846 (€80,000)	£64,846 (€80,000)	£810,580 (€1,000,000)

There are exceptions to these thresholds, each of the following have a threshold of £156,442 (€193,000).

• Part B (residual) services


• Research & Development Services


• Television and Radio Broadcast services


• Interconnection services


• Integrated telecommunications services

OJEU thresholds information sources:

• http://www.tendersdirect.co.uk/Help/Directives.aspx
• http://www.wto.org/english/tratop_E/gproc_e/gp_gpa_e.htm
• http://www.wto.org/english/tratop_E/gproc_e/gp_gpa_e.htm
• http://www.imf.org/external/np/exr/facts/sdr.htm
• http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:314:0064:0065:EN:PDF
• http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2009:292:0001:0003:EN:PDF

Glasgow plans change in Waste Management

Glasgow City Council that it is considering a partnership with Private Sector Companies for the overhaul in the city's Waste Management System.

This comes as part of Glasgow's commitment to become one of Europe's most sustainable cities by 2020. Part of their strategy is the possible procurement of the private management in converting sewage & waste into biogas in order to replace the city's current reliance on fossil fuels.

These changes, which have come out of a report in conjunction with the University of Strathclyde, are expected to generate approx. £1.5 billion in new investment from the 'green' projects alone.

Glasgow eventually intends to phase out the use of coal & oil heating in public buildings, as well as changing to electric & biogas powered vehicles for council services.

The projected investment will be open to tender in line with the normal regulations and should be announced in the near future.