A.43 Some respondents expressed a preference for an output based and a standardised specification. A number of respondents said, however, that the use of output based and standardised specifications depended on the nature of the project involved, the need for innovation, the desired level of risk transfer and the degree of cost certainty.
A.44 The advantages cited for using a standardised specification included reductions in bidding time and cost. Some respondents did suggest that there were drawbacks to standardisation in that it did not always lead to a reduction in costs and too much standardisation could prevent innovation.
A.45 Some respondents suggested that the appropriateness of standardised specifications depend on whether innovation is required. It was considered that an output specification could be appropriate for projects where private sector innovation was essential to successful delivery. Some respondents did, however, suggest that the use of outcome rather than output specifications can lead to greater risk transfer and innovation.
A.46 When considering the approach of engaging contractors in the procurement process, a number of respondents said that earlier engagement would be conducive to achieving greater private sector innovation. Consideration should be taken regarding protection of intellectual property rights and the competitive advantage of bidders.
A.47 It was considered that a range of measures foster innovation, including the use of incentives, competitive dialogue and allowing for contractors to deliver bespoke solutions. A wide range of reasons was given as barriers to innovation. These include lenders' reluctance to finance innovation, excessive over specifications, poor communications and confidentiality.