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Tessa Jowell announces Olympic procurement plans

The Olympic Delivery Authority confirmed today that it will be using NEC 3 to procure the Olympic Games construction projects. It also hinted that e-auctions would be used to negotiate prices. And it will be seeking Olympic 'site-wide' insurance cover.
NEC 3 is designed to enable a partnering approach between client, contractors, subcontractors and designers and has been used on successful projects like Terminal 5 at Heathrow.ODA procurement chief Ray Payne told the NEC users group meeting in March that the contract would be used - as reported in New Civil Engineer 30 March. This is now confirmed.ODA says additional clauses will be incorporated to accommodate particular delivery characteristics such as environmental, sustainability and other social requirements. It has also left the door open for other forms of contract to be used 'where the NEC may not be appropriate'.NEC 3 deals tend to be negotiated but the ODA hints in the strategy that e-auctions may also be used to negotiate prices.'Electronic procurement has demonstrated tangible savings at an operational level. As a consequence, the ODA will use e-procurement systems as appropriate to openly advertise its contracting opportunities, negotiate prices in a transparent and auditable manner.'Retentions, incentives and who bears the risk will be worked out on a package by package basis, the ODA said.The ODA also said it is seeking to take out insurance cover for the whole project rather than individual suppliers taking out their own. 'This will provide a more comprehensive insurance solution and offer better value for money arising from discounted costs for volume.'For full procurement strategy see editor's choice on www.nceplus.co.ukRelated links:Today's top stories

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