This Article was published in Contract Journal, 6 February 2008, page 3

A McAlpine comes under fire for internet 'bullying'

Alfred McAlpine is coming under fire for charging trade contractors to join its online procurement system.

Campaigners at the Confederation of Construction Specialists are urging its members to refuse to stump up £175 in "administration costs" to register.

And the confederation is accusing McAlpine of "bully boy tactics" over its approach to suppliers.

McAlpine's Supplier Accreditation Programme holds key information on firms wishing to work with the company. Suppliers that don't take part have been warned they will not win future work.

Confederation spokesman Richard Noble said: "This is yet another example of a main contractor passing the buck of its own responsibilities down the supply chain.

"Then to suggest that unless the suppliers cough up the £175 fee they will be removed from the database sounds like undue pressure.

"It is typical of the playground bully boy attitudes of contractors that never seem to go away."

McAlpine's internet-based procurement system has been in development since 2006.

Suppliers to its Business Services arm are expected to pay a one-off fee of £175 to join, then an annual fee of £125.

A series of quality checks are carried out on subcontractors and if they pass, trade contractors then go on to the firm's approved supplier list.

One contractor said: "The idea behind this is a good one and most people are in favour of these lists.

"What sticks in everyone's throat is the fact that subbies are expected to finance it and if you don't cough-up the money you don't make it onto the list so you can't win any work with them."
Alfred McAlpine was unavailable to comment.

Barratt revealed this week that no trade contractors have refused to work with the firm after it wrote to suppliers asking for price-cuts of up to 5% on future quotes.

A spokesman said: "Our suppliers realise that conditions have changed and that we have to look at cutting our cost base. They are working with us and we haven't had anyone turn around and say they won't work with us in future."

Grant Prior, Business Editor, Contract Journal - grant.prior@rbi.co.uk