Memorandum by the Major Contractors Group
1. The Major Contractors Group (MCG) welcomes
the opportunity to participate in this inquiry into the work of
2. The MCG comprises twenty-three of the
largest construction companies in the United Kingdom, carrying
out in excess of £22 billion-worth of construction work each
year or about 34 per cent of the total industry turnover of £65
billion. A full list of the members is attached for reference
(Annex A). Companies participate in MCG at Chairman or Chief Executive
level. MCG is also a leading member of the Construction Confederation,
which is the main representative organisation for contractors
in the construction industryits 4,000 members are responsible
for 75 per cent of the industry's work.
3. MCG believes that this enquiry is somewhat
premature in the life of OGC as much of its work has yet to reach
significant fulfilment hence this rather short submission.
4. MCG believes that OGC has key roles to
play in ensuring effective procurement by central government departments
and also in representing the UK's interests in the public procurement
area in the EU. This latter is particularly important in ensuring
that the good practice and maturity gained in UK PFI procurement
is not invalidated through inappropriate EU regulations.
5. MCG believes that OGC has had a positive
influence in ensuring that government procurement bodies understand
the importance of time in the procurement process. In general,
the public sector has had a poor understanding of the detrimental
impact of delay in decision making on procurement cost. This will
contribute significantly to the cost saving challenge when improved
procedures are fully implemented.
6. MCG believes that a clearer statement
of OGC's priorities would be helpful to the private sector understanding
the focus of resources in different areas. It might also be worth
revisiting the earlier remit of the Treasury Task Force to ensure
that the division of responsibility between OGC and PUK has not
left gaps not being currently addressed.
9 November 2001