Friday
26
April
Councillors recommend changes to procurement
08/08/2019 @ 09:45
After investigating the demise of Jistcourt, who were due to build a multi-million pound social housing development in Newtown and Dawnus, who were due to build a primary school in Welshpool, Powys County Council's Audit Committee has recommended several changes be implemented.
This is so the county council is not caught out again by construction companies going bust.
Jistcourt went into administration last month, a week before it was due to start building apartments for the county council in Back Lane, Newtown.
Audit committee chairman, Cllr John Morris, said: “What we wanted to do here today was understand the process around Dawnus and Jistcourt and how we got too where we are with it.
“We need to understand that any change to procurement or vetting process is sound, so that we are as happy as we can be with the contracts we have.”
Cllr Morris added that this was vital as the council will have more building projects in future, especially as part of the 21st Centuries schools projects.
The committee agreed:
• That new advice issued by the Welsh Government in July ‘Assessing the Economic and Financial Standing of Suppliers’ will be used to
• review current practice and approach.
• Ongoing monitoring for all of its major or high risk contracts will now be done.
• Investigate whether analytic companies can provide software that monitor companies and alert PCC if there are changes.
• Include terms in its contract which require companies to provide annual confirmation of compliance and notify the council of changes classed as financial distress.
• Firms would also need to provide other tools and sureties to provide
• assurances to the council on the financial health of all of its key suppliers.
• The council will also need to review its procurement documentation to ensure that a changes to the approaches are incorporated into pass/ fail mechanisms within documentation.
This is so the county council is not caught out again by construction companies going bust.
Jistcourt went into administration last month, a week before it was due to start building apartments for the county council in Back Lane, Newtown.Audit committee chairman, Cllr John Morris, said: “What we wanted to do here today was understand the process around Dawnus and Jistcourt and how we got too where we are with it.
“We need to understand that any change to procurement or vetting process is sound, so that we are as happy as we can be with the contracts we have.”
Cllr Morris added that this was vital as the council will have more building projects in future, especially as part of the 21st Centuries schools projects.
The committee agreed:
• That new advice issued by the Welsh Government in July ‘Assessing the Economic and Financial Standing of Suppliers’ will be used to
• review current practice and approach.
• Ongoing monitoring for all of its major or high risk contracts will now be done.
• Investigate whether analytic companies can provide software that monitor companies and alert PCC if there are changes.
• Include terms in its contract which require companies to provide annual confirmation of compliance and notify the council of changes classed as financial distress.
• Firms would also need to provide other tools and sureties to provide
• assurances to the council on the financial health of all of its key suppliers.
• The council will also need to review its procurement documentation to ensure that a changes to the approaches are incorporated into pass/ fail mechanisms within documentation.
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