Trade bodies urge changes over new procurement reforms to boost standards

Subcontractors should be forced to meet the same competence and training standards as tier one firms on public contracts to tackle low-pricing culture, a coalition of trade groups and unions have told the government.

The 11-strong coalition wrote to business minister Chris McDonald calling for the government’s latest procurement reforms to be co-designed with the industry, then implemented at pace.

A consultation on further reforms to public procurement was launched by the government last June, just months after the Procurement Act 2023 came into place.

The latest changes are aimed at tackling social value objectives in procurement.

However Jay Parmar, chief executive of the Joint Industry Board (JIB), which coordinated the letter, told Construction News the current proposals still prioritise “lowest upfront cost” .

He said: “It makes it really hard for employers that are trying to do the right thing in investing in skills and apprenticeships and creating a stable workforce.

“We’re really worried it’s going to result in higher risks, more reworks, delays, disputes and safety issues, which kind of undermines everything that government is trying to deliver on long-term value from projects.

“We’re not asking for more money, we’re not asking for more red tape. We’re simply saying, get the public procurement standards in shape. So that you signal very clearly to the marketplace that you’re prioritising quality and standards.”

The groups said there should be mandated verified workforce competence and employment standards on public contracts, with requirements for recognised certification such as the CSCS Alliance Scheme. These should be “core eligibility criteria, not voluntary commitments”, the JIB said.

The groups argued that persistent skills shortages drive up project costs and constrain delivery capacity.

“Without intervention, this will limit the UK’s ability to meet its infrastructure, housing and net-zero ambitions,” they said.

The letter, which was also addressed to parliamentary secretary for the cabinet office Chris Ward, was signed by the Electrical Contractors’ Association, the Building Engineering Services Association, the Joint Industry Board for Plumbing and Mechanical Engineering Services, Unite the Union, GMB Union, the JIB, the Chartered Institute of Plumbing and Heating Engineering, JTL Training, the Thermal Insulation Contractors Association, the Engineering Construction Industry Association, and the Association of Plumbing & Heating Contractors.

In response, a government spokesperson said: “We are focused on growing the economy and investing in our communities using the power of public procurement.

“We’ve already overhauled procurement rules to prioritise British jobs and skills, and recently consulted on changes that will reward suppliers who create high-quality local jobs.

“These changes mean that when the government invests in projects – whether it’s building roads, railways, or schools – jobs are created and communities prosper as a result.”