Small businesses will benefit from changes to government procurement rules, which will allow them to bid for more public sector work, according to a commercial law firm.
The Two-Tier code was introduced in 2003 to ensure that the pay and conditions of new staff hired by private companies, which take over public-sector contracts would be comparable with those received by the former public sector staff they work alongside. However, it was a major disincentive to smaller businesses to bid for government contracts because it restricted their ability to deliver services as cost-effectively as possible.
According to EMW this new flexibility means that overall productivity can be increased and improved services can be delivered without an increase in price, allowing businesses to gain a competitive edge when it comes to securing new contracts.
Jon Taylor, head of employment at EMW, said: “Traditionally, flexible working practices were seen as one of the efficiencies that smaller companies could bring to public sector work as they were not locked in deals with public sector unions.
“Smaller companies and the voluntary sector in particular should welcome this change, as without the restrictions of the Two-Tier code, they will be able to tender for business more confidently knowing that they can offer a competitive bid and will have greater control over how they deliver the service in future.”
© Crimson Business Ltd. 2010