CPA introduces new procurement tool

Procurement guidance tool launched to help implement government’s balanced scorecard approach

A NEW procurement guidance tool has been launched by the Construction Products Association (CPA) in direct response to the recently launched government-model Balanced Scorecard.

The approach, developed by the Cabinet Office, introduces guidance around themes such as environmental sustainability and supply chain management, which government departments will be required to factor into the procurement valuation process alongside risk and quality criteria, and not just lowest price.

This will apply to all major central government construction, infrastructure and capital investment procurement projects in excess of £10 million, including those in the National Infrastructure and Construction pipeline, which is valued at £300 billion over the next four years.

By using this approach, the Government hopes it will help UK-based suppliers to compete effectively for government contracts throughout the supply chain.

The new guidance is aimed at procurers and offers a comprehensive listing of the relevant established set of standards and certifications schemes used by product manufacturers that are likely to be relevant when assessing a project against the balanced scorecard themes.

As well as information on the balanced scorecard approach, content is available to help procurers who may not be as familiar with considerations and factors specific to the construction products manufacturing industry.

Dr Diana Montgomery, chief executive of the Construction Products Association, said: ‘Understanding the complexity of what procurers must consider is key to promoting sustainable and long-term decision-making to all major construction projects.

‘Ensuring industry colleagues are informed of the various factors, whether it’s for environment or supply chain management, is an important part of this.

‘The CPA tool will signpost procurers to the established set of international and European standards, Publicly Available Specifications (PASs), and certifications schemes commonly used by the construction product manufacturing sector to measure and report its performance on issues such as environmental sustainability and supply chain management.

‘Considering that government procurement represents about a third of annual construction output, which last year was valued at £35 billion, we believe that this new balanced scorecard approach has such promise that we’re asking the Government to commit to this for all their construction spend as part of the Industrial Strategy outcomes.

‘They could also ask the major clients to commit to this. Doing so would ensure that current infrastructure and government projects attract UK manufacturing investment and deliver supply chain performance and whole-life value of the final asset.’