Will Civil Engineering and Construction SME’s benefit from the changes to the 2014 EuropeanProcurement Directives

Robert Eadie, Samuel Potts

Research output: Contribution to journalArticle

Abstract

Abstract—Construction industry fragmentation into nearly a million Small to Medium Sized Enterprises (SME) in the UK led to calls for the European procurement process to be moreinclusive. The innovation and skills of these organisations was not being correctly utilized in Government contracts. The introduction of the new procurement directives Europe widesought to solve this problem. However, the perspective of SME’s on issues such as self-declaration provisions, breaking contracts into lots, limits to the financial capacity required, andthe effect on procurement if more SMEs tendered had not been fully researched. This paper’s findings show an increase in SME involvement as predicted, and that the other elements ofthe new regulations are appreciated but that organisations have concerns over the capacity of government departments to administer contracts in lots.
LanguageEnglish
Pages117-121
JournalInternational Journal of Civil and Structural Engineering
Volume3
Issue number2
Early online dateMar 2016
Publication statusPublished - 31 Aug 2016

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Civil engineering
Small and medium-sized enterprises
Procurement
Government
Construction industry
Fragmentation
Small to medium-sized enterprises
Innovation

Keywords

  • EU Directives
  • Procurement
  • Construction

Cite this

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title = "Will Civil Engineering and Construction SME’s benefit from the changes to the 2014 EuropeanProcurement Directives",
abstract = "Abstract—Construction industry fragmentation into nearly a million Small to Medium Sized Enterprises (SME) in the UK led to calls for the European procurement process to be moreinclusive. The innovation and skills of these organisations was not being correctly utilized in Government contracts. The introduction of the new procurement directives Europe widesought to solve this problem. However, the perspective of SME’s on issues such as self-declaration provisions, breaking contracts into lots, limits to the financial capacity required, andthe effect on procurement if more SMEs tendered had not been fully researched. This paper’s findings show an increase in SME involvement as predicted, and that the other elements ofthe new regulations are appreciated but that organisations have concerns over the capacity of government departments to administer contracts in lots.",
keywords = "EU Directives, Procurement, Construction",
author = "Robert Eadie and Samuel Potts",
note = "Reference text: [1] European Parliament and the Council of the European Union, (2014b) Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts, Official Journal of the European Union [2] European Parliament and the Council of the European Union, (2014c) Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing directive 2004/17/EC, Official Journal of the European Union [3] European Parliament and the Council of the European Union, (2014a) Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC, Official Journal of the European Union [4] Hall, D., de la Motte, R. and Davies, S.(2003), Terminology of Public-Private Partnerships (PPPs), Available on-line at www.epsu.org/IMG/doc/PPPs-defs-2.doc [Accessed February 2016]. [5] The Stationary Office (2015), The Public Contracts Regulations 2015, Available on-line at http://www.legislation.gov.uk/uksi/2015/102/pdfs/uksi_20150102_en. pdf [Accessed February 2016]. [6] European Commission (2014a), Revision of Public procurement Directives - Frequently Asked Questions, Available from http://europa.eu/rapid/press-release_MEMO-14-20_en.htm [Accessed February 2016]. [7] European Commission (2014). What is an SME? Available from: http://ec.europa.eu/growth/smes/business-friendly-environment/smedefinition/ index_en.htm [Accessed February 2016]. [8] BIS. (2014). Business population estimates for the UK and regions 2014. Sheffield: Enterprise Directorate Analytical Unit, Department for Business, Innovation and Skills (BIS). [9] Cabinet Office (2013) Making Government business more accessible to SMEs: two years on, Available on-line at https://www.gov.uk/government/publications/making-governmentbusiness- more-accessible-to-smes-2-years-on [Accessed February 2016]. [10] Curran, P. (2014). A new dawn for public procurement? Agenda NI, March 31, 2014, Available on-line at http://www.agendani.com/anew- dawn-for-public-procurement/ [Accessed February 2016]. [11] Claeson, A. (2014) Modernisation of Public Procurement, Making the public market more competitive and collusion proof? Master Thesis, Lunds Universitet, Available on-line at https://lup.lub.lu.se/studentpapers/ search/publication/4459522 [Accessed February 2016]. [12] Stothart C.,(2014) How the EU is shaking up procurement, Construction News September 24, 2014 Wednesday, Available online at http://www.constructionnews.co.uk/analysis/analysis/how-theeu- is-shaking-up-procurement/8669861.fullarticle [Accessed February 2016]. [13] Holden, N. and Pearson, S. (2014) The New EU Procurement Directives, Freeth Cartwright LLP, Available on-line at http://www.freeths.co.uk/content/pages/images/publications/THENE WEUPROCUREMENTDIRECTIVES-2014227-151837.pdf [Accessed February 2016]. [14] Cabinet Office (2015a) Government Response to the Consultation on UK Transposition of new EU Procurement Directives, Public Contracts Regulations 2015. Available from: https://www.gov.uk/government/consultations/transposing-the-2014- eu-procurement-directives [Accessed February 2016] [15] Taylor-Powell, E. (1998) Sampling, University of Wisconsin, Cooperative Extension. [16] Rubin, A. and Babbie, E. (2009) Essential research methods for social work, Second Edition, Brooks/Cole, Cengage Learning. [17] Eadie, R (2014) Does Europe need a Specific Prequalification System for Highway Projects? In: Proceedings of the 9th International Conference on Civil Engineering Design and Construction (Science and Practice), Varna, Bulgaria. Научно-технически съюз по строителство в България.",
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T1 - Will Civil Engineering and Construction SME’s benefit from the changes to the 2014 EuropeanProcurement Directives

AU - Eadie, Robert

AU - Potts, Samuel

N1 - Reference text: [1] European Parliament and the Council of the European Union, (2014b) Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts, Official Journal of the European Union [2] European Parliament and the Council of the European Union, (2014c) Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing directive 2004/17/EC, Official Journal of the European Union [3] European Parliament and the Council of the European Union, (2014a) Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC, Official Journal of the European Union [4] Hall, D., de la Motte, R. and Davies, S.(2003), Terminology of Public-Private Partnerships (PPPs), Available on-line at www.epsu.org/IMG/doc/PPPs-defs-2.doc [Accessed February 2016]. [5] The Stationary Office (2015), The Public Contracts Regulations 2015, Available on-line at http://www.legislation.gov.uk/uksi/2015/102/pdfs/uksi_20150102_en. pdf [Accessed February 2016]. [6] European Commission (2014a), Revision of Public procurement Directives - Frequently Asked Questions, Available from http://europa.eu/rapid/press-release_MEMO-14-20_en.htm [Accessed February 2016]. [7] European Commission (2014). What is an SME? Available from: http://ec.europa.eu/growth/smes/business-friendly-environment/smedefinition/ index_en.htm [Accessed February 2016]. [8] BIS. (2014). Business population estimates for the UK and regions 2014. Sheffield: Enterprise Directorate Analytical Unit, Department for Business, Innovation and Skills (BIS). [9] Cabinet Office (2013) Making Government business more accessible to SMEs: two years on, Available on-line at https://www.gov.uk/government/publications/making-governmentbusiness- more-accessible-to-smes-2-years-on [Accessed February 2016]. [10] Curran, P. (2014). A new dawn for public procurement? Agenda NI, March 31, 2014, Available on-line at http://www.agendani.com/anew- dawn-for-public-procurement/ [Accessed February 2016]. [11] Claeson, A. (2014) Modernisation of Public Procurement, Making the public market more competitive and collusion proof? Master Thesis, Lunds Universitet, Available on-line at https://lup.lub.lu.se/studentpapers/ search/publication/4459522 [Accessed February 2016]. [12] Stothart C.,(2014) How the EU is shaking up procurement, Construction News September 24, 2014 Wednesday, Available online at http://www.constructionnews.co.uk/analysis/analysis/how-theeu- is-shaking-up-procurement/8669861.fullarticle [Accessed February 2016]. [13] Holden, N. and Pearson, S. (2014) The New EU Procurement Directives, Freeth Cartwright LLP, Available on-line at http://www.freeths.co.uk/content/pages/images/publications/THENE WEUPROCUREMENTDIRECTIVES-2014227-151837.pdf [Accessed February 2016]. [14] Cabinet Office (2015a) Government Response to the Consultation on UK Transposition of new EU Procurement Directives, Public Contracts Regulations 2015. Available from: https://www.gov.uk/government/consultations/transposing-the-2014- eu-procurement-directives [Accessed February 2016] [15] Taylor-Powell, E. (1998) Sampling, University of Wisconsin, Cooperative Extension. [16] Rubin, A. and Babbie, E. (2009) Essential research methods for social work, Second Edition, Brooks/Cole, Cengage Learning. [17] Eadie, R (2014) Does Europe need a Specific Prequalification System for Highway Projects? In: Proceedings of the 9th International Conference on Civil Engineering Design and Construction (Science and Practice), Varna, Bulgaria. Научно-технически съюз по строителство в България.

PY - 2016/8/31

Y1 - 2016/8/31

N2 - Abstract—Construction industry fragmentation into nearly a million Small to Medium Sized Enterprises (SME) in the UK led to calls for the European procurement process to be moreinclusive. The innovation and skills of these organisations was not being correctly utilized in Government contracts. The introduction of the new procurement directives Europe widesought to solve this problem. However, the perspective of SME’s on issues such as self-declaration provisions, breaking contracts into lots, limits to the financial capacity required, andthe effect on procurement if more SMEs tendered had not been fully researched. This paper’s findings show an increase in SME involvement as predicted, and that the other elements ofthe new regulations are appreciated but that organisations have concerns over the capacity of government departments to administer contracts in lots.

AB - Abstract—Construction industry fragmentation into nearly a million Small to Medium Sized Enterprises (SME) in the UK led to calls for the European procurement process to be moreinclusive. The innovation and skills of these organisations was not being correctly utilized in Government contracts. The introduction of the new procurement directives Europe widesought to solve this problem. However, the perspective of SME’s on issues such as self-declaration provisions, breaking contracts into lots, limits to the financial capacity required, andthe effect on procurement if more SMEs tendered had not been fully researched. This paper’s findings show an increase in SME involvement as predicted, and that the other elements ofthe new regulations are appreciated but that organisations have concerns over the capacity of government departments to administer contracts in lots.

KW - EU Directives

KW - Procurement

KW - Construction

M3 - Article

VL - 3

SP - 117

EP - 121

JO - International Journal of Civil and Structural Engineering

T2 - International Journal of Civil and Structural Engineering

JF - International Journal of Civil and Structural Engineering

SN - 2372-3971

IS - 2

ER -