|
The Construction Sector Transparency Initiative (CoST), a two-and-a-half year pilot looking at information disclosure in procurement, has revealed disclosed information on the eight projects it has tested.
The projects, spread across the country, vary in value from less than £1million to over a quarter of a billion pounds. Each client company has been asked to submit information on things like how many contractors tendered for work, the expected and eventual value of the work, the timetable for project completion, and what method of procurement was used.
While procurement is already subject to a range of regulations through domestic and EU law, CoST focuses on the importance of publishing information for the public. This means setting out figures in a manner that a layperson can easily understand so that it can then be used to counter corruption or the perception of corrupt or other bad practices in the industry.
While the UK is the only rich nation involved in the pilot, several countries from the developing world are taking part as well. That spurred the Department for International Development to help fund the pilot with a view to benefiting development agencies in the long run.
With local people able to assess the information themselves, it is hoped this will result in questions to be asked and answered about cost over-runs and how contractors were selected. It is then hoped that a more transparent system across developing countries could help make development aid more effective.
The pilot has made clear that this is no stick with which to beat industry. Indeed, where it works well it can be used to defend projects from accusations about cost and timetable over-runs. Where a project is delayed or costs rise, this is often because of changes to initial plans or other unexpected situations. Easy to understand figures can help to make clear the real reasons and so overcome assumptions of corrupt or incompetent practices.
It is also hoped that by raising transparency those countries that compete fairly will benefit. Bob McKittrick, chairman of the UK Multi-Stakeholder Group that has run the pilot, told the launch event: “If we can get CoST working properly around the world we may get back to a level playing field.”
This view was backed by the chair of the All Party Infrastructure Group, Nick Raynsford MP, who stressed that corruption must be challenged and that “British construction can win on price and quality” if that happens.
So what comes next for CoST?
Consultation on the pilot was launched on 2 October. That will run until the end of 2010 and gives stakeholders a chance to consider how the findings and lessons can benefit the UK’s public sector. There will also be discussion about whether CoST then goes forward with a specific UK focused approach and how private procuring bodies can be engaged.
The consultation may also raise issues about how deep CoST goes. The pilot has looked largely at the initial procuring bodies and not at the procurement practices of their contractors. As it develops there are hopes it would go further and provide greater detail through the supply chain. It is also hoped that the UK’s successful involvement will encourage international bodies to adopt its lessons.
 download this article.
|