Moneyspinner deals in store for local firms
MORE than 130 local businesses are set to win potentially lucrative contracts after striking deals with Glasgow’s City Building.
The agreements, which will last an initial period of three years with an option for a fourth, will help to supply more than 70 construction projects by offering them framework sub-contracts.
Of the 136 companies who have been awarded the deals, 112 are small-medium sized businesses, which experts say will offer a boost to Glasgow’s economy.
The announcement of the contracts has been welcomed by the Federation of Small Businesses Scotland.
Martin Little, chair of FSB Scotland, said: “Glasgow’s smaller businesses are extremely important and contribute significantly to the local economy, and public procurement can be a very effective way to help them grow and thrive.
“Our research shows that for every £1 spent with an SME, 63p was re-spent in the local area compared to 40p in every £1 spent with a larger business.
“This is why we have asked public sector agencies in Scotland to spend at least 10% of their procurement budget with local micro firms by 2020.”
According to recent research, City Building is behind a turnover of nearly £325m across the city and supports nearly 4,000 jobs.
The construction firm have said that these latest deals reaffirm their commitment to contributing effectively to the Glasgow economy.
Dr Graham Paterson, executive director of City Building, said: “We are extremely proud of the positive impact our supplier development activity has had on Glasgow SMEs, supported businesses and the third sector.
“Our new sub-contractor framework agreement will help us to continue to drive wealth and create employment opportunities across the city.”
During the detailed application process for the contracts firms were evaluated, with the number of apprenticeships offered and their delivery of community benefits both taken into account.
This latest set of investments in Glasgow’s businesses offers further support to the vision of Glasgow’s City Deal which aims to support small and start-up businesses in the city.