Explained: Dynamic Purchasing Systems vs Dynamic Markets

The public sector procurement landscape is changing. With Dynamic Markets being introduced under the Procurement Act, it’s important that you are able to understand the key differences between these and a Dynamic Purchasing System, the benefits of Dynamic Markets, and how these changes will affect main contractors and subcontractors in the construction industry.

 

Understanding Dynamic Purchasing Systems

A Dynamic Purchasing System is an electronic means of procuring goods and services, in a flexible and efficient manner. It’s similar to a public sector procurement framework agreement, but with one critical difference – suppliers can join at any time.

Benefits of a Dynamic Purchasing System include:

	Open to new entrants: Unlike traditional procurement frameworks that feature a fixed list of suppliers, a Dynamic Purchasing System is open to new entrants throughout an agreement’s life. This encourages competition, providing greater choice to public sector contracting authorities.
	Protected by construction pre-qualification questionnaires (PQQs): All suppliers and construction subcontractors have to undergo a pre-qualification procurement process, meaning buyers have access to a pool of approved suppliers.
	Faster procurement: Dynamic Purchasing Systems streamline the public sector procurement process, making it easier for public sector buyers to find the perfect construction project partners, while reducing administrative burden too.
	Easier access to opportunities: For subcontractors and suppliers – especially those new to the market – a Dynamic Purchasing System levels the playing field. There’s no need to wait for new procurement framework agreements, so you can compete for more public sector contracts.

Find out more about Dynamic Purchasing Systems.

 

But isn’t the Procurement Act introducing Dynamic Markets?

That’s right. In February 2025, the new Procurement Act will welcome Dynamic Markets.

Just like Dynamic Purchasing Systems, suppliers can still join Dynamic Markets at any time. But while fairly similar in scope, there are some important differences that main contractors and subcontractors need to know about.

	Wider scope: Whereas Dynamic Purchasing Systems are limited to specific goods and services, Dynamic Markets are open to all procurement types. This means they can be used for more bespoke or complex public sector procurement requirements, expanding their potential.
	More flexibility: Dynamic Markets provide greater opportunities to set conditions for supplier participation, so buyers can better target suppliers that meet their specific needs. However, selection criteria must be reasonable and proportionate to the goods and services being sought.
	Greater visibility: For every Dynamic Market created, a Dynamic Market Notice must be published. This notifies all eligible suppliers of the opportunity. This improves transparency for public sector procurement contracts across the board, promoting fair competition.
	Clearer framework: Previously, there were some ambiguities surrounding Dynamic Purchasing Systems, such as the scope of suitable procurements. But with Dynamic Markets becoming a part of the Procurement Act’s legal framework, this brings with it greater certainties and assurances.

It’s also important to note that Dynamic Purchasing Systems could be used for procurements below the UK’s procurement thresholds. In contrast, Dynamic Markets cannot, and are instead intended for higher-value procurements.

What is a Dynamic Market Notice used for? A Dynamic Market Notice is essentially an announcement published by a contracting authority, signalling their intent to publish a Dynamic Market. It provides key information about the Dynamic Market and invites interested suppliers to join.

 

What does this mean for main contractors?

If you’re a main contractor, Dynamic Markets gives you access to a wider scope of procurement projects, so you can bid for a greater variety of work. While the new framework encourages competition, those that can demonstrate a competitive edge will thrive, with a far greater pool of potential projects to choose from.

And with buyers using more specific supplier selection criteria as part of Dynamic Markets, it gives you the chance to showcase more specialised skills and experience, so you can win more work that’s a perfect fit for your business.

 

What does this mean for subcontractors?

If you’re a construction subcontractor, then Dynamic Markets give you access to a wider variety of potential public sector procurement projects. By being part of a Dynamic Market, you also increase your visibility, making it easier for decision-makers to find you and award public sector contracts that are best suited to your knowledge and experience.

In fact, suppliers with specialist, highly sought-after construction capabilities will likely be well-rewarded. Dynamic Markets give you the chance to set yourself apart from the competition.

Furthermore, by fostering a more transparent public sector procurement process, you can better understand how to compete effectively against other construction subcontractors. There is the potential for you to be able to use this increased transparency to your advantage, by taking learnings from both successful and unsuccessful tender bids in order to improve your chances of winning more public sector contracts.

 

Are there other ways to win public procurement contracts?

Absolutely. Here are a number of other ways you can make applying for public sector contracts even easier.

• Connect and contract: Marketplace Live – Bringing together the UK’s  leading construction industry subcontractors and main contractors, this is your chance to network, meet local public sector contracting authorities and potentially win more work. Marketplace Live can help you to grow business opportunities and get deals done.

 

• Procurement made easy: Marketplace Find – Our Marketplace Find tool brings together public sector procurement opportunities, all in one helpful place. Find public sector contracts in specific locations, save your favourite searches and set up notifications, and take steps fast to boost your business’ public sector pipeline. Existing Members can login to Marketplace today. New Members can Sign up for a Constructionline Membership to start using Marketplace.

 

• Simplify compliance, amplify your business – From the Procurement Act to the Building Safety Act, there are ever-growing expectations to meet increasingly stringent legislative demands. It pays to make sure your compliance credentials are in order, so public sector authorities can have every confidence you can satisfy a job’s requirements. Tools like our Building Safety Act Assessments help you evidence your capabilities and competence with ease.

Speak to our team today to find out how Constructionline can help you demonstrate your compliance.

 

Embracing change in the era of Dynamic Markets

Dynamic Markets are poised to reshape the landscape of public procurement in the UK. Building on Dynamic Purchasing Systems, they foster increased competition, flexibility and transparency, offering exciting opportunities for both construction main contractors and subcontractors.

While navigating the complexities of public procurement can be challenging, understanding the nuances of Dynamic Markets and leveraging tools and resources from Constructionline can help you get ahead of the Procurement Act’s legislative changes and win more public sector contracts.

Whether you’re a main contractor or a subcontractor, embracing these changes will be crucial for securing your share of public sector contracts and achieving long-term success.

For more details on the Procurement Act, be sure to check out our Procurement Act Hub.