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How the Procurement Act impacts Main Contractors in the Construction industry

We’re here to help you understand how the Procurement Act (2023) impacts Main Construction Contractors and make it work to your advantage in the Public Sector Construction industry.

Make the Act work for you.

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Nearly £407 billion of public money was spent on public sector procurement in 2023/24,
which is expected to rise by ~10% in 2024/25*.

About the Procurement Act (2023)

The Procurement Act (2023) presents one of the biggest changes to UK public sector procurement for Construction Main Contractors.

Effective from 24th February 2025 (previously 28th October 2024**), the Procurement Act aims to give Contracting Authorities more autonomy in their Tender Awards. It encourages more streamlined processes, with the intention of prioritising strategically advantageous tenders as opposed to being assessed simply on best price. Overall, with great spending in public sector procurement, the Procurement Act seeks to give smaller subcontractors a better opportunity at winning work.

How the Procurement Act will affect Main Contractors in the Construction industry

The Procurement Act aims to provide Main Contractors with greater commercial freedom to design procurement processes that meet their exact needs and drive innovation. Equally, it benefits subcontractors throughout public procurement processes, simplifies bidding, and removes barriers so they have easier access to public sector contracts, including Main Contractors’ supply chains.

When working with subcontractors, notable changes to be aware of include:

Debarment list

Whilst the Procurement Act opens subcontractors up to more work, the Debarment List saves Main Contractors time filtering through which subcontractors may pose a risk to their Public Sector Tender. If they have previously underperformed, the Procurement Act serves the right for them to be moved to the list, protecting Contractors’ reputation in the process by working with suitable subcontractors.

How will the Procurement Act help you?

 

A stylised computer monitor icon featuring a large eye symbol in the centre, representing observation or surveillance.

Improved visibility

Promotes better transparency through the contract lifecycle

A stylised computer monitor icon featuring a large eye symbol in the centre, representing observation or surveillance.

Improved visibility

Promotes better transparency through the contract lifecycle

Boost your social value

More opportunity to promote your ESG credentials

Boost your social value

More opportunity to promote your ESG credentials

Simplified bidding processes

Flexibly designed procurement processes that fit Main Contractors’ and Subcontractors’ needs

Simplified bidding processes

Flexibly designed procurement processes that fit Main Contractors’ and Subcontractors’ needs

Drives innovation

Creates greater commercial freedom and considers the wider value and impact of a tender

Drives innovation

Creates greater commercial freedom and considers the wider value and impact of a tender

How we can help

Our solutions help you stay on the right side of the legislation.

Get commercial freedom and flexibility in Tender processes sooner through our platform.

 

 

 


Building Safety Act Radar (BSA Radar)

The Building Safety Act is critical for public builds.

Automatically scan through your construction supply chain to identify subcontractors whose competence, knowledge and behaviours meet the legislation.


Supply Chain Management tools
  • Manage supply chain: Manage your existing supply chain and keep track of compliant subcontractors 
  • Invite new suppliers: Need to reach more subcontractors? Not a problem. Filter by your requirements to find your next partner, in one place. 

 

 

 

Marketplace 

Perfect for Contractors working on Private and Public Sector Tenders, you can make use of the following features sooner: 

  • Find Supplier: Access 70,000+ pre-qualified subcontractors in just a few clicks 
  • Publish: Publish Projects to a nationwide audience and choose from 4,800+ Work Packages with ease 
  • Tender Management: Use the market’s only AI-drive tender management software and tool tool to automate the enquiries stage of the tender process and save over 70% time invested 

Risk Radar
  • Get ahead of subcontractor financial distress in your construction supply chain 
  • Check subcontractors’ history of non-compliance or court cases  
  • Up-to-date information: Why spend time looking at Companies House data direct? Access financial risk with accurate data from suppliers below the £10.2m threshold, faster. 

Key resources

Watch our short video series to help you understand the Procurement Act.

What are the New Procedures?

This video sets out the changes in the procedures available to contracting authorities to procure their construction contracts, including staged awards and the rules on engaging with suppliers during this process. It should be watched by buyers, estimators, and surveyors, but also due to the content on staged awards, by contract/project managers.

Below Threshold Procurements

This video sets out the rules that contracting authorities must apply when procuring works contracts below £5.37 million (the point at which they become public contracts). For many contracting authorities, below-threshold procurements amount to most of their procurements, so for SMEs, these rules are significant. This video should be watched by estimators (and potentially surveyors, contract/project managers, and senior management).

Dynamic Markets or Frameworks

This video sets out the new rules around frameworks, open frameworks, and dynamic markets. Being on one of these contracts/arrangements can have a significant impact on accessing opportunities in the public sector; this session sets out what they are and how they work in practice. It should be watched by estimators (and potentially surveyors, contract/project managers, and senior management).

Knowledge Hub

Key information to help Construction Main Contractors and Subcontractors
understand how the Procurement Act affects them.

Contact us now for more information on how Constructionline can assist you

Discover which solutions can help you make the Procurement Act work to your advantage.

If you’re a Main Contractor:
  • Streamline your procurement and supplier sourcing effortlessly.
  • Access a trusted network of 70,000+ prequalified subcontractors.
  • Reduce risk and ensure compliance with verified suppliers.
If you’re a Subcontractor:
  • Get certified and boost your business credibility.
  • Access more projects and partnership opportunities.
  • Simplify compliance and stay competitive in the industry.