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EU agrees public procurement reform

16 Jan 14 Revised rules for public procurement have been agreed by the European Parliament that could benefit smaller construction contractors.

Among the revisions are new measures to encourage buyers to break large contracts into smaller lots and capping turnover requirements for businesses. According to European Commission estimates, the simpler processes could also save SME companies up to 60% of bidding process costs.

There is also a reduction in red tape, with only the winning tender being required to provide supporting paperwork.

A provision particularly welcomed by the GMB union allows public sector clients to consider social and environmental criteria in the procurement stages as long as these are linked to the content of the contract.

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In addition, public authorities can take into account the process and production methods of goods even if they are not visible in the final product. It will be easier for them to rely on labels and certifications as proof of compliance with the sustainability criteria they have set. This way, public authorities can give preference to bidders that offer better working conditions to their workers, favour the integration of disabled and disadvantaged workers, and offer sustainably produced goods, GMB said.

However, the final text of the directive still allows authorities to buy the cheapest rather than the most socially or environmentally sustainable option. Although life-cycle costing provisions have been improved, the social externalities cannot be taken into account in life-cycle assessment, which GMB described as “a flaw and missed opportunity”.

Members States now have two years to implement the rules into their national laws. The UK government said it wants to introduce them as soon as possible.

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MPU
MPU

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