Local suppliers or contractors

We refer to our previous post relevant to local consent. 

https://dicastri.club/2016/05/22/local-consent/

The company or the branch of a company that is working in a given Municipality or equivalent area, has to take into consideration the need to hire local people whenever possible and to give a kind of business priority to local suppliers and contractors.

Of course, this is applicable only in case that local people have the qualifications and competences needed. The risks are

  • on one side, if we do not involve local people, to be considered as not belonging to the local community, but
  • on the other side, the risk is that local people will request higher compensation only for the very fact that they are local.

Useless to say, both risks are to be avoided.

The best option, in my opinion, is to give to the local people a second call option or a first refusal’s right. In plain words, provided that all the qualification and competency requirements are met, the local supplier or contractor shall have the right to be awarded the job, provided that he can do it at the price and conditions quoted by the best tenderer.

 Gianluca di Castri – 21/08/19

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