RICS and others warn 拢125m-turnover threshold will exclude all but major consultants on public sector work

GCF

The industry has expressed concern after it emerged public sector procurement body Scape is planning a 拢125m-turnover threshold for bidders on its 拢350m consultancy framework, amid fears SMEs could be excluded.

Scape issued a prior information notice (PIN) for the Built Environment Consultancy Services (BECS) four-year framework last month, in which it said potential suppliers would require 鈥渕inimum turnover level [鈥 in the order of 拢125m per annum鈥�.

Scape will hold market awareness days for the framework in Leeds and London next week, ahead of issuing invitations to tender in April next year. The framework, expected to be awarded by July 2016, will be open to public sector clients and covers project management, quantity surveying, architecture, engineering services and strategic asset management.

When asked to comment on the framework鈥檚 proposed 拢125m-turnover threshold, a spokesperson for the RICS said: 鈥淎ny initiative that excluded SMEs from the construction pipeline, whether directly or indirectly, would be disappointing.鈥�

One SME consultant, who declined to be named, called the proposal 鈥渞idiculous鈥�, adding that Scape was 鈥減laying into the hands of major companies鈥�.

Scape defended the turnover threshold when contacted by 黑洞社区 and claimed it 鈥渋s not a barrier for SMEs in any way鈥�, adding that interested SMEs could club together to form consortiums that meet the 拢125m turnover threshold.

Victoria Brambini, Scape Group head of national frameworks, said: 鈥淲e are actively encouraging companies who are considering bidding for BECS to form consortiums.鈥� However, the SME consultant questioned this approach, warning it 鈥渓ost sight of the cost and time required to put a consortium together鈥�.

The PIN states that it is likely there will be one sole provider awarded the framework, but local suppliers will be able to work within the winner鈥檚 supply chain.

Brambini added: 鈥淎t Scape Group, we actively pursue the ongoing use of a local supply chain to enable local socio-economic benefits to our clients and indeed, it is one of our key measures for success.鈥�

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