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9 March 2009
Contractors turn to constructionline as public sector orders grow
Constructionline – the government-endorsed register of pre-qualified suppliers – has reported a surge in the number of contractors and clients signing up to the service as public sector demand for construction continues to strengthen against a weakening private sector.
The service, which is the preferred supplier database for the majority of the industry’s public sector client base, increased the number of registered users by 13 per cent to a total of 16,700.
The number of new clients adopting the service – which includes NHS, local authorities, police forces, universities and the private sector – increased 25 per cent in the same period, taking the total to 1,900.
Constructionline says that, while new orders in some privately-funded sectors continue to fall, contractors were signing up to the service in a bid to win more work in growing government-funded sectors.
Figures released by the Office of National Statistics (ONS) last month (15 January) show that, in the 12 months to November 2008, public non-housing orders – which includes schools, hospitals and prisons - rose by 31 per cent compared with the same period last year.
Private commercial and private industrial orders, however, fell by 22 per cent and 27 per cent respectively in the same period.
Philip Prince, Sales and Marketing Director of Constructionline, said: “Many contractors have been switching their focus to the public sector as demand from private commercial and industrial sectors has softened.
“Our penetration in the public sector has always been high, which continues to attract a growing number of suppliers.”
Constructionline also believes that increasing pressure on costs and budgets was encouraging buyers and suppliers to look for efficiencies in their procurement and tendering process.
Barry Ashley, Business Development Manager, added: “Client organisations – particularly in the public sector - are increasingly conscious of the potential time and money that can be saved by using a single, reliable and certified procurement tool like Constructionline.
“With margin pressures being felt by the industry’s supplier base, contractors and consultants are also keen to find ways of reducing the cost of tendering for new business. Contructionline can save companies up to £30,000 a year.”
Other figures from Constructionline’s 2008 annual review included:
• Buyer usage increased 40 per cent
• 16,700 suppliers now registered
• Supplier retention rate of 90 per cent
Constructionline, which is free for buyers to use and join, eliminates the need for procuring organisations to request pre-qualification questionnaires (PQQs) from suppliers when assembling tender lists.
The only Government endorsed register of pre-qualified contractors, the scheme is saving the industry a potential £500 million in administration costs every year.
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The service, which is the preferred supplier database for the majority of the industry’s public sector client base, increased the number of registered users by 13 per cent to a total of 16,700.
The number of new clients adopting the service – which includes NHS, local authorities, police forces, universities and the private sector – increased 25 per cent in the same period, taking the total to 1,900.
Constructionline says that, while new orders in some privately-funded sectors continue to fall, contractors were signing up to the service in a bid to win more work in growing government-funded sectors.
Figures released by the Office of National Statistics (ONS) last month (15 January) show that, in the 12 months to November 2008, public non-housing orders – which includes schools, hospitals and prisons - rose by 31 per cent compared with the same period last year.
Private commercial and private industrial orders, however, fell by 22 per cent and 27 per cent respectively in the same period.
Philip Prince, Sales and Marketing Director of Constructionline, said: “Many contractors have been switching their focus to the public sector as demand from private commercial and industrial sectors has softened.
“Our penetration in the public sector has always been high, which continues to attract a growing number of suppliers.”
Constructionline also believes that increasing pressure on costs and budgets was encouraging buyers and suppliers to look for efficiencies in their procurement and tendering process.
Barry Ashley, Business Development Manager, added: “Client organisations – particularly in the public sector - are increasingly conscious of the potential time and money that can be saved by using a single, reliable and certified procurement tool like Constructionline.
“With margin pressures being felt by the industry’s supplier base, contractors and consultants are also keen to find ways of reducing the cost of tendering for new business. Contructionline can save companies up to £30,000 a year.”
Other figures from Constructionline’s 2008 annual review included:
• Buyer usage increased 40 per cent
• 16,700 suppliers now registered
• Supplier retention rate of 90 per cent
Constructionline, which is free for buyers to use and join, eliminates the need for procuring organisations to request pre-qualification questionnaires (PQQs) from suppliers when assembling tender lists.
The only Government endorsed register of pre-qualified contractors, the scheme is saving the industry a potential £500 million in administration costs every year.
