Construction: Contracts

Mr. Amess
To ask the Secretary of State for Business, Enterprise and Regulatory Reform what legislation regulates competitive tendering in the construction industry; what changes have been made to it since enactment; and if he will make a statement.

Mr. Thomas
There is no legislation which specifically regulates competitive tendering in the construction industry. Construction is covered by generic procurement and competition legislation. In terms of procurement, construction is regulated by the Public Contracts Regulations 2006 (Statutory Instrument 2006 No 5) which implements the EU public procurement directive. A further set of rules (Utilities Contracts Regulations 2006—SI 2006 No 6) applies to relevant operators (both public and private) in the utilities sector when they wish to procure works or services. For projects above certain financial thresholds, these set out procedures to be followed in setting out specifications, selection of candidates and the award of the contract. They are intended to enforce the EC treaty principles of transparency and free movement of goods and services.