Source · Select Committees · Public Accounts Committee
Recommendation 35
35
Accepted
The Department also recognised that it needs to build up its commercial capability to enable...
Recommendation
The Department also recognised that it needs to build up its commercial capability to enable it to act as an intelligent client and to manage the range of suppliers effectively. It stated that it had been too optimistic in its assumptions about the work required to integrate suppliers and is looking to increase its commercial capability. The Department stated that ultimately it bears the risk of managing these commercial arrangements effectively and cannot transfer this to its suppliers.64
Government Response Summary
The government agrees to report back on progress in developing its commercial strategy for the Weybridge redevelopment, including contract structure and competition, with a target implementation date of June 2023. Commercial Strategy Phase II has been endorsed and Phase III is in development.
Government Response
Accepted
HM Government
Accepted
7. PAC conclusion: The redevelopment of Weybridge is a large construction programme with a range of commercial risks that will need careful management. 7. PAC recommendation: The Department should report back to us in six months on progress in developing its commercial strategy and specifically on how it: • Intends to structure its contracts and manage their integration effectively; and • Will ensure there is adequate competition for the main construction contracts. 7.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2023 7.2 The department will update the Committee in six months via Treasury Minute. The Commercial Strategy Phase II has been endorsed by the SCAH Programme Board. Phase III of the Strategy is in development with a planned completion by Quarter 3 of 2023. By May 2023, the programme will have options around Science Hub form of contract and competition, including packaging approach and the contracting environment to manage sub programme integration. This will reflect early market engagement to ensure the department’s approach will attract sufficient market interest.