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ACE has welcomed the recent commitment from Transport for London (TfL) not to include fitness for purpose requirements in their current framework for professional services. Responding to concerns raised by ACE, it has agreed to use the “reasonable skill and care” standards common to many professional service contracts.
As part of the assurance, which arrived after a series of constructive meetings between the two bodies, TfL has also agreed not to use reverse auctioning in their framework processes. ACE has consistently emphasised that reverse auctioning is not an appropriate way of procuring consultancy and engineering services.
ACE also raised the issue of parent company guarantees (PCGs). TfL will require framework suppliers to provide PCGs at the framework level; however, at the call-off level PCGs will be negotiable, depending on the complexity and risk involved in the project.
Regarding insurance, TfL has accepted that there is ongoing discussion on the definition of “loss”. If, on a call-off contract, the insurance limit is increased then that will be regarded by TfL as an exceptional item, and therefore can be reimbursable. There will be no compulsion on a framework supplier to compete for any call-off contract, and the supplier will decide at the time whether they wish to bid.
Nelson Ogunshakin, ACE chief executive, said “Transport for London’s current framework for professional services represents a highly significant investment in the capital’s transport infrastructure. It is crucial, therefore, that it is procured in a way that delivers the optimum balance of quality and value to London’s taxpayers and transport users.
“I am therefore pleased that Transport for London has listened to our concerns. ACE has a productive and constructive dialogue with Transport for London and we hope we will continue to engage with it, working in partnership to enable the best possible outcomes.”
-ENDS-
Further information from ACE senior communications executive Piers Nutbrown on 020 7202 0255, or email pnutbrown@acenet.co.uk
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