Chief Secretary to the Treasury Danny Alexander commends ACE input to policy at National Conference.

Chief Secretary to the Treasury Danny Alexander told ACE at the National Conference that he would welcome more discussion with the organisation on the impact of the National Infrastructure Plan on social infrastructure and potential benefits of this to SMEs.

“The knock on effect from economic to social infrastructure is not captured in the National Infrastructure Plan, so what he is asking us to come up with is a mechanism by which we can see," explained ACE chief operating officer Anil Iyer. This could then be used to highlight future opportunities from the NIP to SMEs in the sector.

“The SME community has a massive role to play in social infrastructure and buildings. Most SMEs work for private clients where they have to deliver value and innovation, always trying to be ahead of the curve. Those skills can be transferred to public clients,” BWB managing director Steve Wooler

SMEs at the conference welcomed the comments and highlighted several key issues currently affecting smaller consultancy businesses. At the top of the agenda were concerns that SMEs would be under utilised in the major infrastructure investments planned for the UK. “The potential is huge but the problems of getting involved are of a similar magnitude,” said Steve Wooler, managing director of BWB Consulting.

“The SME community has a massive role to play in social infrastructure and buildings. Most SMEs work for private clients where they have to deliver value and innovation, always trying to be ahead of the curve. Those skills can be transferred to public clients,” he said.

However Wooler said that procurement bureaucracy prevents SMEs from getting involved with public sector clients on both social and economic projects. “It is a great shame because the SME community has got massive potential to bring to public sector procurement and to ensure that the tax pound is spent in the most efficient way.”

Evidence of this is clear, said Wooler, as Tier 1 contractors on major public frameworks were bringing designs to SMEs and asking them to find alternative, better value solutions. “And we do, and they keep coming back to us so the expertise does exist and is being utilised by contractors.”

Taking a peer review type role working directly with clients was another area of opportunity for SMEs said Wooler, if the procurement hurdles could be overcome.

ACE North West regional chair Mike Barber issued advice for SMEs seeking to be involved in large infrastructure projects starting with being realistic about the services that SMEs can bring to both clients and projects. “Demonstrate an absolute ability to deliver,” he said noting that delivering specialist services, having a regional presence or existing relationships with the client or the Tier 1 contractors could all be advantages that win work for smaller firms. 

He also advised SMEs not to agree to ‘pay when paid’ clauses from Tier 1 companies. “Or forever be compromised,” he warned. He also encouraged SMEs to aim high, consider joining forces with other SMEs where there might be opportunities, and never ignore the client.