ALL States departments are being advised to use new official forms for tenders on public construction works projects. The Treasury and Resources Department has issued the business information forms, which were developed in consultation with the Construction Forum and former States sub-committees.

It is hoped that they may help to alleviate some concerns of local sub-contractors working for UK firms on big projects.

‘This is a new initiative,’ said Treasury and Resources Minister Lyndon Trott. ‘New in so far as it is a great deal more comprehensive. But I must stress that significant financial checks were carried out in the past.

‘This has met some opposition because of that and all the information requested is historical to a point in time and is used as indicative guidance on a company’s commercial viability.

‘It really is a judgement call about contracts as to whether or not a company can sustain the business.’

Deputy Trott said that though he had sympathy for the local firms caught up in the collapse of UK companies, it was difficult to find real solutions.

‘I’m not aware of a construction contract that has advance payments of the type necessary to ensure no risk whatsoever to the contractor.

‘The difficulties that have been experienced over the last 18 months are very largely due to the overheated condition of the local construction industry.

‘It is a fact that contractor bankruptcies and insolvencies rise significantly during periods of overheating.’

The department has issued a statement about the collapse of Bristol-based Byword Construction, which has ceased trading owing local firms some £200,000 from two States projects.

It repeated the often-heard official line that the States could not become involved in contractual matters between parties in which it had no rights in law, even on States contracts.

It added that various activities organised jointly with the industry to raise awareness of the issue would continue under the new form of government. The States has adjusted the type of procurement used in its projects wherever practicable and effective.