Are UK businesses prepared for the new procurement act?

A recent survey conducted by Trends Research for client Constructionline, the pre-qualification and compliance services provider for the construction sector, reveals that many businesses remain underprepared for the upcoming Procurement Act, despite its enforcement date of 24 February 2025.

Lack of awareness and mixed sentiment

• 37% of construction industry leaders are unaware of the Act’s start date

• 69% do not reference the Act in either current or new tenders

• 73% of respondents say they are either ‘on the fence’ or ‘concerned’ about the Act’s potential effects

While awareness around the Act’s timing appears low, 53% of respondents believe the legislation will help ensure a fairer process, and 27% think it could reduce the time spent on tendering.

Perceived benefits and readiness gap

When asked what they consider the most significant potential benefits of the Procurement Act:

• 51% cite greater transparency and accountability

• 16% see better value for money

• 13% view it as an opportunity to facilitate business growth

• 10% expect cost reductions

• 10% forecast increased innovation

Despite this optimism, the survey indicates that the vast majority of firms are not integrating the Act’s requirements into their tendering processes.

In response to the findings, Trends Research worked with Constructionline to publish a guide called ‘Three Golden Rules for the Procurement Act’, designed to help companies understand key obligations and capitalise on potential advantages:

“This research makes it clear that while our industry understands the purpose of the new Act, many are still unsure about how to embed it within their own organisations,” says Nick Smith, Head of Sustainability and Regulation at Constructionline. “The time to act is right now.”

About the survey

Trends Research surveyed nearly 1500 construction leaders across both private and public sectors. Of those:

• 69% were small businesses (1–50 employees)

• 14% were medium-sized businesses (51–250 employees)

• 17% were large enterprises (251–500+ employees)

The new Procurement Act is slated to take effect on Monday, 24 February 2025, requiring contracting authorities to abide by the updated National Procurement Policy Statement (NPPS), published on 13 February 2025.