Bidding for public sector work? In that case, understanding the Procurement Act 2023 is vital and can help you stay ahead of the competition. It plays a crucial part in how contracts are awarded, suppliers are managed, and compliance is maintained.
In this blog, we’ll walk you through what the Procurement Act 2023 is, why it matters, and what it means for businesses like yours.
The Procurement Act 2023 is a piece of legislation designed to change and simplify the UK’s public procurement regime after Brexit. It came into force on February 24, 2025 and applies to the entire UK, aiming to create a more transparent, flexible and efficient system for buying goods, services and works in the public sector.
Essentially, it replaces the rules that the UK inherited from the EU and was made to better suit UK businesses.
The Procurement Act 2023 condensed four major sets of regulations into a single, unified framework:
This simplification is a game-changer for contractors and procurement professionals. Instead of trying to understand and comply with multiple regulations that overlap, now there’s a single streamlined Act to follow.
Public sector bodies such as councils, schools, hospitals and central government departments are significant clients for many businesses in the construction industry.
The Procurement Act 2023 sets out the rules that clients must follow when they procure works, meaning it directly influences how and when construction companies are awarded contracts. Here are some of the key implications:
The Procurement Act brings in a number of practical updates that aim to streamline the procurement process and make it more accessible. Here are some of the most significant changes that businesses need to understand and prepare for.
The Act replaces the EU-derived principles of equal treatment, non-discrimination and transparency with a new set of principles:
These principles set the tone for how public procurement should operate, and offers more flexibility in how contracts are designed and awarded.
The new Act encourages pre-market engagement, allowing contracting authorities to speak with suppliers before officially launching a procurement process. This is great news for innovative construction companies, as it gives them a chance to influence project scopes early on.
All procurement data will now be published on a single digital platform, known as the “Transforming Public Procurement (TPP) Portal”. This includes notices about:
It’s designed to give everyone, including smaller contractors, greater visibility of upcoming work and more equal access to opportunities.
Instead of the previous prescriptive processes, the Act introduces two key competitive procurement procedures:
This change allows buyers to choose a route that best suits the needs of the project, rather than being forced into rigid structures.
Public sector buyers will now be required to keep records of supplier performance. This is a major shift that gives good performers an edge and encourages everyone to raise their standards.
If your business consistently performs well, you’ll be in a stronger position to win future work. However, if performance is poor (such as failing to meet deadlines, safety standards or contract requirements), businesses could be excluded from future procurement opportunities.
That’s why it’s essential to maintain high standards across the board. Making sure your workforce is properly trained, your Health & Safety practices are up to scratch, and your certifications, such as SSIP, are in place, will all contribute to a solid performance record.
With the right support, preparation and adjustments, your construction business can take full advantage of the opportunities that the Procurement Act 2023 offers. Here’s how:
Holding an SSIP certification shows your business meets core Health & Safety standards. It’s a recognised certification across the industry that streamlines Health & Safety assessments by recognising mutual standards across different schemes (all overseen by the SSIP governing body). It’ll become increasingly important as procurement officers seek out reliable, safe, and compliant suppliers.
The Worksafe PQQ builds on the now discontinued PAS 91 to help standardise and streamline your pre-qualification process. With contracting authorities needing to demonstrate transparency and accountability, having clear documentation ready will put you at a serious advantage.
Investing in your employees’ training will help keep your staff safe, compliant, and confident. At Smas Worksafe, we offer various training courses like our Health & Safety Awareness training, site supervisor training (SSSTS) or site management safety training (SMSTS), all designed to provide your workers with the necessary knowledge to grow their careers and skill sets.
With more focus on supplier capability and performance, properly trained staff will help protect your reputation and improve your bid success.
It’s more important than ever that all documents and data are stored correctly. Digital tools and software offer secure centralised storage, making it easier to manage documents and have quick access to everything you need.
With supplier performance being reviewed with greater scrutiny under the new procurement act, it’s important that you have everything on hand, from compliance records to performance reviews.
As we mentioned before, the Procurement Act 2023 officially came into force on 24 February 2025. Originally, the Act was scheduled to take effect on 28 October 2024. However, following the 2024 general election, the incoming Labour government announced a delay to 24 February 2025. This gave public bodies and suppliers more time to prepare for the new changes to make for a smoother transition.
With the Act now in effect, all new public procurements initiated from 24 February 2025 onwards must comply with its provisions. For construction companies, this means adapting to new procedures and requirements, such as:
Want to make sure your business is ready for the new procurement landscape? SSIP certification is a great place to start! Not only will it cut down on time when it comes to Health & Safety pre-qualification questionnaires, but it also shows clients and buyers that you’re serious about safety and compliance.
At Smas Worksafe, we’re one of the leading providers of SSIP. So, if you’re wanting to boost your levels of Health & Safety and make your business more attractive to clients, then contact us today to learn more about how we can support you!
