4 APPLYING EFFECTIVE PROCUREMENT
PRACTICES
21. The Olympic programme will involve extensive
procurement activity in the coming years in relation to both the
construction of the venues and infrastructure and the staging
of the Games. Strong procurement practices will be needed to achieve
value for money and ensure contracts are awarded in an open and
fair way in line with best practice.[27]
22. The Olympic Delivery Authority has developed
a procurement policy, with help from the Office of Government
Commerce, which sets out best practice and will guide the way
in which the Authority carries out its procurement. The Olympic
Delivery Authority is also among the signatories to the '2012
Construction Commitments' which set out good practice principles
in six areas of the construction process—client leadership;
procurement and integration; design; sustainability; commitment
to people; and health and safety.[28]
23. The Games are expected to account for 2% of construction
activity across the country over a five year period (12% of activity
in London) and there were plans to provide training to develop
the skills of local people, with money available from the London
Development Agency. The Olympic Delivery Authority was working
with the construction industry and the trade unions to maximise
direct employment (rather than self-employment) as far as possible
as this gave greater control, particularly over health and safety;
but the Authority thought that insisting on using only directly
employed labour would risk driving away potential contractors.[29]
24. The Olympic Delivery Authority's first major
procurement exercise, completed in September 2006, was the appointment
of the CLM Consortium as its Delivery Partner. CLM had been appointed
following a detailed tendering and vetting process and would supplement
the Olympic Delivery Authority's own resources with experience
from five previous Games and the Heathrow Terminal Five project.
They would support in the delivery of the Olympic venues and infrastructure,
including through the provision of project and programme planning
and management services.[30]
27 C&AG's Report, paras 78-79 Back
28
C&AG's Report, paras 81-83 Back
29
Qq 219, 222-224 Back
30
C&AG's Report, para 78; Qq 51, 142 Back
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