Newspaper article Manchester Evening News

This Should Be a Wake-Up Call to Councils, Say Business Chiefs

Newspaper article Manchester Evening News

This Should Be a Wake-Up Call to Councils, Say Business Chiefs

Article excerpt

ROBERT Downes, development manager at the Federation of Small Businesses (FSB), said there should be a number of lessons learned from the Dawnus debacle, calling it a 'wake-up call'.

"It does raise certain questions around public sector procurement," he said. "We had this with Carillion. I think the councils, and public sector in general, are so affected by cuts that it's a case of 'cheapest is best'.

"That reflects in businesses putting in ridiculously low bids for work with no realistic prospect of delivering on time or on budget and ending up squeezing the supply chain. And this is how it ends. They end up too thinly spread and not enough profit.

"One thing goes wrong and the house comes falling down.

"Dawnus was a massive company, they were building schools, roads, bridges across the country, [Regent Road] is just one piece of their jigsaw puzzle. …

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