Having an understanding of the market is an essential aspect of being an intelligent client. Without this knowledge a local highway authority may run the risk of tendering a maintenance contract and ending up with little or no take-up from the industry.
Local highway authorities are increasingly likely to be the poor relation in the current climate, where there is plenty of available transport infrastructure work, particularly from Highways England, HS2 and other major projects, allowing contractors to be more selective in what they bid for.
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Matthew Lugg OBE
In some recent examples local highway authorities have taken their existing contract documents, dusted them down, changed the dates, and lacked the market intelligence to realise how the market has shifted since the recession and then been surprised when they ended up with virtually no tenderers.
On a similar theme there have been examples where local authorities have gone to market using non-standard forms of contracts that have included a high level of risk transfer and been astonished about the lack of industry interest, to the extent that they ended up with little or no competition.
These are some of the more extreme examples of poor clienting, which have resulted in a lack of competition for contracts and a limited ability to demonstrate value for money.
These pitfalls can be overcome by clients recalibrating their approach to procurement, recognising the market has moved from a recessionled bargain basement to an infrastructure-led growing economy, where securing the resources of a competent provider is the essential outcome.
What are the attributes that demonstrate an intelligent client?
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