THE Royal Incorporation of Architects in Scotland (RIAS) has welcomed the Scottish Government’s recent consultation on raising tender threshold values under the Procurement Reform (Scotland) Act 2014, but warned that ‘fundamental reform’ must now follow.
The organisation said the move represents a ‘long overdue’ review and ‘much-needed’ update to support small and medium-sized firms and streamlines public sector tendering arrangements.
However, the incorporation said it continues to demand a ‘much more fundamental reform’ to Scotland’s approach to construction procurement.
Tamsie Thomson, chief executive of the RIAS, said, “We recognise the benefits of raising thresholds to SMEs, but we cannot look past the fact that these are tweaks, not a transformation. Scotland needs a procurement system that values quality, safety and long-term outcomes, not just lowest price.
“Currently, the framework under the Procurement Reform (Scotland) Act 2014 is failing professional services like architecture and may no longer be fit for purpose for construction. Cash-strapped public authorities are taking a tokenistic approach to quality, rewarding unsustainable bidding that erodes standards and increases risk.
“This is unacceptable in the wake of Grenfell, school closures and hospital failures. Twelve years since its inception, and with better models emerging elsewhere, Scotland must fundamentally rethink procurement when the next Parliament convenes after the May election.”
In its response, the RIAS said it supports the increase in thresholds, and the benefits this represents in empowering architecture and construction SMEs in the procurement process. The association added that where smaller firms often struggle with the costs and bureaucracy of regulated processes, raising thresholds for goods, services and works will reduce compulsory bidding for low-value contracts, and enable more contracts to be awarded without the burdens of full statutory regulation. This would create an opportunity to help SMEs to focus their resources on ‘quick quote’ opportunities where their track record and understanding of the client and context is valued, and competition remains between other trusted suppliers – decreasing the risk of bidding for work with little chance of success.
The RIAS went on to state that removing these regulatory barriers for smaller projects would also allow for ‘leaner and faster’ local procurement, with the potential to improve the delivery of public services and save local authorities time and money. This can in turn be re-invested into scrutinising a smaller number of bids, with a view to driving up quality and reducing risk.
