UK - Small schemes are shunning consultants and carrying out tenders themselves, Lane Clark & Peacock claims.
It believes a combination of inexperienced consultants and high fees has persuaded a number of small schemes to carry out actuarial consultancy and third-party administration tender exercises alone.
LCP senior consultant Nick Phizackerley said that while big schemes could justify costs of £20,000 to £40,000 – the typical fee for managing a tender – smaller schemes were understandably looking to minimise costs by doing without third-party procurement advice.
“Schemes should look to spend between 2.5% and 5% of fees over a five-year contract on procurement consultancy.
“We have found that smaller schemes are now increasingly taking procurement in-house both to make savings and because some firms are using graduates and inexperienced consultants, and the service provided is not up to scratch.”
Phizackerley urged schemes to consider how worthwhile procurement advice was in relation to the size of the contract.
LCP is holding a seminar on Tuesday to show managers how best to run selection exercises without paying for third-party consultancy.
For details, go to www.lcp.uk.com/services/events.asp or 020 7933 2728.
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