Invest in skills if you want to win Government work industry told

Bidders for major government infrastructure projects from 1 April have to provide evidence of their commitment to developing skills. The Construction Leadership Council has been tasked with setting the standard of good skills behaviour.

Jackie Whitelaw
24 March 2015

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Contenders for government work are now required to demonstrate their commitment to upskilling the current and future workforce in order to be considered for contracts. Initially this applies to deals with values over £50M but will eventually be rolled out to smaller jobs.

Roads minister John Hayes trailed the policy in a speech in March  when he estimated 10,000 new recruits would be needed to deliver the roads investment plan alone. So “when suppliers bid for work, they will need to commit to providing apprenticeships. And to implementing skills-plans to equip their workforce for the long-term." 

"Through apprenticeships and high quality training, this initiative will help make sure industry invests in the skills the country needs" - skills minister Nick Boles 

Treasury also told business leaders last week that the sector had to take responsibility for future training. It also confirmed that a National Infrastructure Plan for skills was the next development of the annual NIP.

HS2 LTD has welcomed the latest government initiative and  signed up to incorporate the principles into its next bidding process.

"Under these new plans, bidders for all major government projects will have to demonstrate a clear commitment to developing the skills of the current and future workforce," said skills minister Nick Boles.

"Through apprenticeships and high quality training, this initiative will help make sure industry invests in the skills the country needs."

He said the Construction Leadership Council had been asked "to help determine the types of behaviours government procurers should look for".

"This new approach to procurement will generate real and lasting change in the sector’s investment in people, helping to avoid skills shortages" - Lord Deighton, Treasury

Commercial Secretary to the Treasury Lord Deighton said: “This government was the first to set out a National Infrastructure Plan to provide clarity on the pipeline of investment in major infrastructure construction. Our next challenge is to address the immediate need to develop the skills necessary which will deliver this ambitious pipeline. That is why the government has committed to develop for the first time a National Infrastructure Plan for Skills.

"This new approach to procurement will generate real and lasting change in the sector’s investment in people, helping to avoid skills shortages."

The change came into force from 1 April 2015 and will apply to all government projects with a capital value over £50 million, Deighton said. "These requirements will be placed in contracts, monitored and may be used to inform future procurement decisions. Procurers will also be encouraged to introduce similar requirements, where appropriate, in lower value projects.

"It is expected that more than 224,000 jobs in the construction industry will be created by 2019. This move will play an important role in ensuring the industry has the skilled workers it needs to meet demand and support growth, while supporting people to progress or begin their careers in key industries for growth including construction and engineering."