Poor procurement fails utilities and contractors alike

LGW collaborates with clients to balance price and value.

The traditional procurement process in the utilities sector is broken. At LGW Digital, we've seen firsthand how the current tendering model fails both utilities and contractors. The focus on lowest-price-wins often leads to unrealistic tender packages, misaligned pricing models, and ultimately, poor project outcomes.

One of the biggest issues with the current model is that it encourages underbidding. Contractors, eager to win the job, often submit bids that don't reflect the true cost of delivering the project. This leads to cost overruns, delays, and a lot of frustration on both sides.

At LGW Digital, we advocate for honest pricing and long-term value. We don't underbid to win contracts. Instead, we provide realistic estimates that reflect the true cost of delivering the project. This approach not only ensures that we can deliver on our promises, but it also builds trust with our clients.

Another issue with the current procurement process is the lack of value-driven outcomes. The focus on price often means that quality and long-term value are overlooked. This is particularly problematic in the digital infrastructure space, where the cheapest solution is rarely the best.

We believe that a more collaborative, transparent approach to procurement is needed. By working closely with our clients, we can ensure that the projects we deliver provide real, long-term value. This means focusing on quality, reliability, and performance, rather than just price.

In conclusion, the current tendering model in the utilities sector is failing both utilities and contractors. At LGW Digital, we're committed to a different approach, one that prioritses honest pricing, long-term value, and collaborative, transparent relationships with our clients.