Strengthening the backbone of construction through procurement of SMEs

The Procurement Bill

While industry events provide the opportunity for us to collaborate and coordinate an approach to changes that we need to see in the industry, changes in specific laws mean that the government can really stamp authority on a matter.

The Procurement Bill aims to ‘shake up our outdated procurement system’ and make procurement more straightforward, flexible and accessible for suppliers. Having been introduced last year, it is currently making its way through the House of Commons. This is unquestionably good news for the construction industry and something that we should all rally behind.

Though there is a way to go before Royal Assent and the journey will no doubt include further amendments to the bill, we should use the focus on procurement to continue questioning and supporting how we make the construction industry as sustainable and productive as possible.

Procurement for everyone

Resources and a widespread skills shortage mean creating economically viable and competitive tenders is particularly difficult at the moment. This is a struggle currently faced by both the small number of large businesses in our industry and the large number of SMEs that make up the majority of registered firms.

With this in mind, it’s encouraging that the Procurement Bill has aims to protect SMEs and the backbone of our industry. One way in which it seeks to achieve this is by shifting from a ‘most economical’ to a ‘most advantageous’ tender. We see this as a positive step forward and are interested to see what it will mean in reality for the industry. There is reason to be optimistic about the impact of this particular change, which could create further opportunity for SMEs to capitalise on.

This difference should unlock unique expertise and offerings possessed by SMEs, despite operating with a smaller resource pool to larger businesses. In essence, this change will put more focus on ‘value’ and help to prevent a ‘race to the bottom’ based on price.

Big roles for small businesses

We want to see larger businesses play their role in sharing the value of work with the wider industry, not only to support a healthy network of SMEs but also to provide opportunities for them to grow.

Even as a multi-disciplinary consultancy of our size with a vast range of experts, there are project requirements that we need to engage with niche and specialist subcontractors to deliver effectively and to the highest standard. Whether its healthcare planning, transport modelling or waste management consultancy, there are so many avenues for collaboration and in doing so we can help make SMEs more experienced and deliver better together.

The Construction Playbook and ‘gold standard’ for public sector frameworks have encouraged the construction industry to improve in recent years and readied many for upcoming changes, but where outside advice falls on deaf ears, it’s the role of new legislation and action from the private sector that will see a measurable difference made. We strive to ensure 75% of our supply chain is made up of SMEs and micro suppliers, not because we have been made to but because we truly believe that this results in the best outcomes for the project team, client and community.

We look forward to seeing the final Procurement Bill and what changes it will bring, but in the meantime we remain committed in our responsibility to helping SMEs and inspiring businesses like us to be the same.

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