Enforced on 24 February 2025, the Procurement Act is transforming the way public sector contracts are awarded. It aims to create a simpler and more flexible system that streamlines procurement, creating more opportunities across the construction industry, especially for smaller suppliers.
As well as making it easier to bid for work, the Act has introduced a shift in the award criteria. When assessing tenders, this enables contracting authorities to consider other factors that may create value beyond just price.
As a demolition contractor working predominately in the public sector, we see these changes as a positive step forward. With greater emphasis on how our work will be delivered rather than just cost, the Act is creating a more level playing field for those that prioritise best practice.
Raising the bar
Within the past few months, we have already started to see the impact of the Act. One of the most noticeable changes has been the increased focus on Health, Safety, Environmental, and Quality (HSEQ) scoring as well as social value. This is a significant shift which should eliminate the ‘race to the bottom’ and allow much fairer comparisons when selecting suppliers.
We have seen a clear rise in quality scoring based on methodologies and proven experience, something which we fully support. Every demolition project is unique, demanding specialist skills and ways of working. It is encouraging to see the tendering process now reflect these requirements, recognising contractors that continually invest in raising their standards.
Demonstrating and recording social value is now a key part of the evaluation. In demolition, this is particularly important. Given the nature of our work, early and proactive engagement with local communities is essential. This not only helps minimise disruption but also identifies opportunities to create benefits that extend beyond our projects.
At Freeley, our long-standing commitment to delivering social value is central to how we operate. We collaborate closely with key stakeholders and local communities to develop initiatives that address local needs and help build economic resilience. To support this, we have implemented a system, supported by the Social Value Portal, that enables us to accurately measure, record, and evidence our social impact.
With an increasing emphasis on social value in tender processes, there is also the opportunity to foster stronger collaboration across the supply chain. New partnerships could unlock more positive outcomes for the communities in which we work.
A note of caution
The Act has maintained an open procedure, which creates a single-stage process for simpler procurements. This may encourage smaller firms and new entrants to tender for certain contracts. However, this process can be risky in the demolition industry where our services are far from straightforward.
All demolition projects come with complex risks and requirements, which need to be reflected in the procurement process. It is essential that all contractors bidding for demolition work are properly evaluated for competence, quality and safety. We have seen some local authorities award complex demolition projects to skip-hire companies or scrap recycling firms because they submitted the lowest price. These decisions create significant risks for both the client and the public.
Although the Procurement Act should help to address this by enforcing more balanced evaluation criteria, the National Federation of Demolition Contractors (NFDC), is also playing a critical role in raising awareness.
Its ‘Intelligent Demolition Planning’ seminar series is educating both the public and private sectors on the importance of choosing the right contractor. Delivered in partnership with the Health and Safety Executive (HSE) and the Institute of Demolition Engineers (IDE), these free, national events provide guidance on how to procure and plan safe, compliant and successful demolition projects.
Positive strides
Although it is still early days for the Procurement Act, it is certainly moving things in the right direction. The focus on higher standards, performance, and social value is a step forward for our industry as well as for public sector procurement.
The government deserves credit for driving these changes. Now, it is up to contracting authorities to follow through, ensuring evaluation processes genuinely reward quality, safety, and social impact, and demolition contractors committed to meeting the highest standards.
