GUERNSEY urgently needs to review its procurement procedure for building projects. UK project management expert Malcolm Roberts said that the States should consider implementing management-focused contracts for the construction industry.

UK firms use established contract forms. Mr Roberts, on a visit as a guest of Guernsey Technical Services, said that the island needed to look more closely at the procurement strategy of contracts.

‘The implementation of a proper form of contract would bring in safeguards that are already available to contractors in the UK.

‘There may be a reluctance by some to introduce new procurement procedures but if you do bring it about, you will educate the local contractors,’ he said.

‘There would be very real benefits to the island and it may have the added advantage of a wider review of what the island wants to construct over the next few years.

His warnings followed criticism of UK contractors after the pull-out of Bristol-based Byword Construction, which left local contractors more than £200,000 out of pocket when it stopped trading last month.

‘You cannot ban UK contractors – you need a practical, sensible review to avoid the problems you have had,’ said Mr Roberts, a project manager, adjudicator, arbitrator and mediator with nearly 40 years’ experience of the construction industry.

‘You can’t avoid the fact that if you have a booming economy, resources will be needed from elsewhere.

‘The local contractors have to be more switched on to how they can protect themselves.

‘I would say you need to spend more time vetting contractors who come over.’

Mr Roberts said that better management of projects was a good idea.

‘From a Guernsey point of view, I suspect the implementation of better management techniques in Guernsey could help to ensure you have more control.’

He added that checks should be carried out to ensure UK contractors had the proper reputation and financial backing before they were taken on.

Most forms of contract in the UK had standard terms and conditions and an approved list of subcontractors. A more robust approach to their employment might be needed in the island, he said.

‘There is a series of checks and balances, which should help avoid the scenario that has happened here,’ he said.

He denied claims that UK contractors would not care who they upset locally, but admitted that some did not appreciate the local situation.

Paying local firms up front could cause problems, he added.

But modern forms of contract adopted in the UK did sometimes include the provision of a bond on work and that might be an approach worth considering.

‘No subcontractor should miss out because they have not been paid and they should have the right to withdraw labour or go to adjudication.’