Andy7 wrote: It has happened. Essex County Council has now got us to cut our own throats, so they don't have to do it for us and thus don't get the blame.
Is it legal? They say yes. I don't kinda agree. What do you think?
Here is how it works:
1. We are asked to quote a binding price on a tender.
2. We put in our best price, and are now contractually committed to undertake the job at that price if we are the winning bidder.
3. If they like the best price, they accept it. (Fair enough so far, eh?)
4. If they don't "like" the best price, or perhaps, if they don't like the operator who has won, or, maybe, if they are just in a bad mood that day (the decision as to which winning tenders/contracts go out to auction is arbitrary), then they void the tender (from their side - you, the operator, are still committed to do it should they so choose later).
5. They then put the tender out to auction, on a falling price internet auction, so all the operators can then bid on it, providing, that is, that they bid lower than the starting price. (The starting price is the lowest bid they have already had when it went out to tender).
The result, is that the operators then have to underbid each other, from a figure that the original cheapest operator thought was his minimum realistic price to do the job !!!
The bottom line?
Well, we now have operators undertaking jobs at clearly uneconomic rates. Example: Minibus jobs at 55p per mile, that require an escort (the escort costs must be included in the bid price, hence are included in the 55p a mile), and which if you calculate the overall time taken on the job, do not meet the requirements of The Minimum Wage Act. But hey, it's your responsibility not to break the law, not County Council's aparently.
Just add that it now costs £120 for County to give you a CRB Check and ISA registration. Licences for our cabs and drivers have rocketed as more and more legislation hits us from District Council, County Council, National Government and EU Government. And I ain't gonna mention fuel costs.
What's the choice?
1. Operate illegally?
2. Reduce costs by reducing vehicle maintenance?
3. Don't bid on Council Contracts?
4. Work for nothing - just for the joys of the job?
5. Go Bankrupt?
6. Go on the dole?
7. Bash head against wall and end up in hospital?
8. Ring Samaritans.
Do The Council, not have a Duty of Care, to ensure that contracts they award are legally operable?
Is it not the case, that a contract awarded that cannot be operated legally, is in fact a void contract and cannot be enforced under English Law?
Had the same problems round here Andy, the one man bands thought they were getting one over on the firms by going in way low on prices, little did the one man bands know that they have to keep doing them for 5 years and can't be sub tendered out to other companies.
One driver quoted £12 for a £25 contract, he's stumped with it because no one wants it.
If they want to go in low let them but ask the Council to make sure they aren't farming them out to other drivers on the ranks.
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