How can we assure all interested parties beyond the requirements of the Public Contracts Regulations 2015 that companies are going to continue to be financially viable?
The construction market is a volatile place. With high profile collapses of companies delivering major public sector projects, and profit and performance warnings on others, it’s a tough environment to operate in for buyers and suppliers alike.
A frequent concern expressed by Procurement Hub members is that of financial stability. How can we assure all interested parties beyond the requirements of the Public Contracts Regulations 2015 that companies are going to continue to be financially viable? When it comes to procuring these types of complex projects how are we going to manage the ongoing financial status of a delivery partner so that risks are managed? How can we assure there is absolute certainty on cost and that contracts perform to be delivered on time?
Transparency is the solution
Our new Major Projects solution is another innovative first. It is a single source framework that has not only been through a robust Official Journal of the European Union (OJEU) compliant procurement process, but also contractually obligate Wilmott Dixon, the selected partner, to submit fully transparent financial information on turnover, work in progress, sales, debtors and creditors on a regular basis.
This information will then be verified by an independent financial auditor, and a health check report will be shared with our members.
So what does this mean for our Members?
It gives them a certainty that this is the only framework in the UK, that doesn’t stop its financial evaluation at contract award. It is a live and independently audited ongoing process with a focus on managing risk in an appropriate manner, so that major construction projects can be delivered by a credible, financially viable and responsible supply chain partner.
Corporate social responsibility
As part of their bid Wilmott Dixon also evidenced zero retention on all contracts, advanced payment terms to second and third tier supply chains with zero charge, robust and fully auditable KPI’S and service level agreement system that commits to SME spend allowing them to thrive.
Major Projects provides a unique opportunity for our members to have access to a responsible, auditable, fully risk managed solution for their major construction projects. It will deliver their projects with cost certainty and full supply chain visibility that is continually managed, monitored and reviewed.
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