HM Treasury News Release
161/97                                        11 December 1997  
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                  BETTER BUILDING FOR BRITAIN
             GETTING THE BEST OUT OF PUBLIC SECTOR
                     CONSTRUCTION CONTRACTS

Making Government Departments better clients will deliver better
value for taxpayers' money in major contracts with the
construction industry, Paymaster General Geoffrey Robinson said
today.

Publication of the first of three sets of guidance provides
Departments with best practice guidance which will  improve
consistency of approach to all stages of project development
leading up to the agreement of contracts. 

Announcing the new guidance, Mr Robinson said :

     "The construction industry is a vital part of the UK
     economy, and the Government is its biggest client. We spend
     24 billion Pounds with it every year, 40 per cent of its
     total business.

     "It is vital for the industry and the tax payer that
     Government Departments play their part in ensuring higher
     quality and more efficient products when preparing
     contracts to deliver public sector construction contracts.

     "The Government is committed to encouraging the
     construction industry to meet the  need for innovation and
     improvement, working together as far as possible in
     partnership.  All Departments must be clear about the
     standards they need to attain as best practice clients, and
     must have firm plans for achieving them. 

     "This guidance, developed for the first time in
     consultation with the industry and reflecting its views,
     will do much to achieve those goals." 

The first set of guidance deals with: 

-    core competencies required by clients  to ensure that
     construction contracts deliver what is needed; 

-    achieving best value for money from construction
     procurement; and 

-    the appointment of consultants and contractors where the
     emphasis is on selection on the basis of a combination of
     quality and price rather than price alone. 

Further guidance covering more detailed aspects of the client
role, including financial aspects of construction projects, 
project evaluation and feedback, teamworking and life-cycle
costing, will be issued during 1998.

The guidance documents will provide best practice advice to
Departments, building on and extending the Construction Industry
Board (CIB) Codes of Practice. The Treasury Procurement Group has
worked closely with other Departments and the construction
industry to ensure that the  views of practitioners are fully
represented. 

The Treasury invitation to the industry to comment on the
guidance, and the willingness of the industry to respond
positively, is a first in this area and is a clear and
significant step forward in developing a practical dialogue with
Government. This approach has been strongly commended by the CIB. 

NOTES TO EDITORS
1.   The Paymaster General announced publication for public
     consultation of draft versions of the guidance circulated
     today on 26 September 1997 (HMT Press Release 114/97). 

2.   Development of the guidance has been overseen by the
     Government Construction Clients  Panel (GCCP), which
     ensures coordinated action by Departments and the
     development and implementation of  cross-departmental
     client issues.  

3.   The GCCP is developing a powerful agenda for further
     enhancing the client role, which includes work on
     benchmarking and performance measurement, partnering and
     value and risk management. It has a number of action groups
     dealing with these and other particular issues, as well as
     a 'Dialogue With Industry' group that provides a forum for
     exchange between Departments and construction industry
     representatives. 

4.   The first set of guidance comprises three documents:

      -       Essential Requirements for Construction
              Procurement

      -       Value for Money in Construction Procurement

      -       Appointment of Consultants and Contractors
     
5.   These are being distributed to Government Departments, CIB,
     the Construction Client Forum, and industry representatives
     on the Dialogue With Industry Group. Industry copies can be
     obtained from the Treasury Public Enquiry Unit on  0171-270
     4558. 

6.   Media enquiries should be addressed to Charles Keseru on
     0171 270 5188. 

7.   If you have access to the Internet you can find this news
     release at  http://www.hm/treasury.gov.uk.  Other Treasury
     material can also be found at this address.