How is the procurement of construction work being arranged for the Glasgow Commonwealth Games 2014? Are there any lessons that can be learnt from the procurement of construction work for the London 2012 Olympics?
The Commonwealth Games, Glasgow 2014
Glasgow will host the Commonwealth Games in 2014 and this will be a boost to the cities economy both directly and indirectly. The hosting of these Games will provide many opportunities for businesses in the run up to the games, during the games, and after the games. Opportunities will exist for the procurement of good, works and services of all types and values from a huge range ...view middle of the document...
On this site, businesses can register for alerts regarding upcoming contracts and through this system can compete for tender opportunities. In order to be considered for Games related contracts, businesses have to register and provide their details, and it is hoped that this encourages business to become ‘business ready’ by having all of their pre-qualification information in place, ie insurances, health and safety information, references etc. It is planned that by filling this information in once, the answers provided will be used to electronically populate any PQQ’s that the registered business wishes to submit. This is a great step forward as it allows businesses to save time on multiple tender applications. All tenders whether public or private having involvement in the Games will be advertised on this site so it will open up a vast array of opportunities for registered businesses. There will be a period of deselection where non compliant contractors are removed form the database, which will help to streamline the procurement of works.
By using this form of open tendering through the Business Portal, G2014 Ltd of the private client is receiving tenders on a competitive basis. In order for the client to minimise risk to themselves of inflation or growing costs, they can at this stage opt for fixed price contracts.
Some of the projects within the Commonwealth games have a duraton of over 2 years and, it can be assumed, that inflation will rise before the completion of the project. Due to the political nature of the games, the problems faced in Delhi in 2010 and previous high profile budget over-runs within the Scottish Government, the clients will be looking for cost certainty for contracts placed. It would be adviseable that the main contractors will be placed on fixed price contracts and that they strongly factor inflation into their tender price. If inflation does not rise to the perceived level included within the tender price, costs savings could be displayed which is good news for the contractor and the Client.
When selecting a procurement route the three factors which must be taken into account are Time, Cost and Qualtity. Due to the Nature of the Commonwealth Games, it is my opinion the two most important aspects are Time and Cost. The Games are due to happen on a set date and by looking at the problems faced in Delhi, it is more apparent than ever that these deadlines must be met. In the absence of wild monkeys, snakes, monsoon rains and illnesses from stagnant water, there is a limit to the level of poor quality that can be displayed in the UK. This is due to stringent health and safety rules and building regulations thus it is reasonable in my mind that basic standards will undeniably be met. With regards cost, it is vital that the projects come in on budget in order to calm the fears of the public after the Scottish Parliament Building in Edinburgh debacle. This is Glasgow and Scotlands chance to prove that they...