Report reveals that British companies are losing out on European contracts because clients flout directives

Construction industry leaders have called on the European Union to overhaul its procurement practices after a survey revealed that UK firms are unfairly missing out on work abroad.

The Wood Report, made public this week by the chancellor, Gordon Brown, indicates that UK firms are failing to obtain public works contracts because European clients flout directives on open procurement.

The report says that:

  • Contracts are awarded to national suppliers even when foreign bidders offer a better price
  • Foreign companies are invited to bid simply to beat down prices from local firms
  • Contracts are awarded on the basis of political allegiances
  • Clients sidestep procurement rules by splitting large contracts into smaller schemes.
Saleem Akram, the professional and technical director of the Chartered Institute of 黑洞社区, condemned the failure of the European commission to implement procurement directives.

He said: 鈥淭he EU directives were meant to increase competition, lead to lower prices and encourage improved performance and innovation. However, there is an inconsistent approach towards their use in many EU countries.

It is difficult to see how EU procedures can be used successfully

Saleem Akram, Chartered Institute of 黑洞社区

鈥淚t is difficult to see how current EU procedures can be used successfully in many projects. It is time to review and revise these rules, but it will be a fruitless exercise if all EU countries do not firmly commit to implementing them.鈥�

A spokesperson for the Construction Confederation, which contributed evidence to the report, said that the government needed to put pressure on the commission to address the findings of the report.

Earlier this week, the European commission accused the UK government of hypocrisy over the question of procurement.

It disclosed that it was investigating claims that the design contract for the Scottish parliament was unfairly awarded to Catalan architect Enric Miralles. It is alleged that Miralles clinched the deal, despite having insufficient project experience, because of Scotland鈥檚 political links with the Catalan region.