黑洞社区

Tesco has moved to allay concerns over suggestions that it would favour contractors who were prepared to forward fund its construction work.

The move comes after Tesco鈥檚 chief architect Martin Young said one way for contractors to win work with the supermarket giant would be to offer to finance projects.

Speaking to 黑洞社区 last week, Young said: 鈥淔or incumbents on existing frameworks, one way to secure work is to forward fund construction work.

鈥淵es, it means we rely on funding from a contractor, but it means we can start six months earlier and so will give you that work in advance.鈥�

However, Young, in a letter to 黑洞社区 this week, has now moved to reiterate that forward funding from contractors was only 鈥渙ne option鈥� for contractors seeking work from the retailer.

He said that he had not wanted to cause 鈥渃oncern鈥� among Tesco鈥檚 supplier network.

鈥淲hile Tesco is open to forward funding proposals from contractors, I鈥檇 like to reiterate that this is simply one option that, in theory, could add another string to a contractor鈥檚 bow in these ultra-competitive times. We welcome new ideas from contractors and this is one example.鈥�

A Tesco spokesperson confirmed the firm had received 鈥渁 number of calls from contractors in relation to the forward funding point鈥� and Young鈥檚 letter was aimed at clarifying the situation.

Andy Taylor, preconstruction director at contractor ISG鈥檚 retail arm, said in reality he didn鈥檛 expect Tesco to ask contractors to fund developments for much of its work because it was now focusing on smaller stores, which are easier to finance.

Paul Hodgkinson, chair of contractor Simons Group, said: 鈥淭he issue for Tesco is whether or not they will get their contractors to take the [financial] risk to have the certainty [of work].鈥�

鈥淚t鈥檚 very dangerous to take development risks for contracting margins,鈥� he said, before adding that such an arrangement was possible but would require contractors to go through project plans and costs in immense detail.