22 Jan 2025
by Gray Gibson

New Public Procurement Regulations – How to Prepare and Take Advantage of New SME Benefits

NFRC Members working with government and local authorities should be aware that the Procurement Act 2023 (PC2023) will come into force on 24 February 2025.

This new legislation replaces the Public Contracts Regulations 2015 and is set to simplify public procurement procedures in England, Wales, and Northern Ireland (and in some reserved areas in Scotland). The new regulations are designed to simplify procurement, with a particular emphasis on streamlining processes for SMEs.  

Below is an overview of the key points to help you prepare.

1. Scope and Applicability

Who is affected?

All contracting authorities in England, Wales, Northern Ireland, and those with reserved functions in Scotland. This includes local authorities, central government departments and their arms-length bodies, NHS trusts, schools, universities, and some housing associations and health bodies.

Contract value thresholds:

PC2023 applies fully to procurements exceeding certain thresholds.

£138,760 for central government authorities

£213,477 for sub-central government authorities

If the value of your contract exceeds the relevant threshold, you must follow PC2023 rules.

Exemptions:

Some devolved Welsh and Northern Irish procurements may be exempt—check the specific details if you operate in those regions.

2. Key Changes Under the Act

Simpler and More Flexible Procedures

Contracting authorities have more freedom to tailor procurement processes to fit their local objectives and deliver value for money. This should allow for more negotiation and engagement between buyers and suppliers.

Central Digital Platform

A new, free-to-use digital platform will replace the existing Find a Tender service. Suppliers can upload core business details just once and update as needed. This simplifies the registration process and allows you to set up tailored alerts for upcoming projects.

Focus on Value for Money  

Under PC2023, contracts will be awarded to the Most Advantageous Tender (MAT) rather than the Most Economically Advantageous Tender (MEAT).

Authorities will look beyond the lowest price to consider broader social, economic, and environmental value.

This is an opportunity for roofing contractors to showcase how they bring additional value, such as local job creation, apprenticeship schemes, and support for net-zero initiatives.

Pre-Market Engagement

Contracting authorities (CAs) will have to publish procurement pipelines, if they spend over £100 million a year.

CAs will also publish Preliminary Market Engagement Notices to alert suppliers to upcoming opportunities, giving you an early chance to engage, influence requirements, and prepare more competitive bids.

Enhanced Transparency and Integrity

Authorities will be required to share more information with suppliers, helping you to understand their decisions and policies.

There is a new duty to ensure fair treatment and prevent conflicts of interest.

A strengthened focus on prompt payment aims to improve cash flow for SMEs.

New Duty to Consider SMEs

Public bodies must take account of barriers facing smaller firms and consider adjustments like realistic bidding timelines.

This should help level the playing field for SMEs in roofing and other trades.

3. Practical Steps to Prepare

Familiarise Yourself with PC2023

Take time to understand the new procedures and thresholds.

Watch the available knowledge drop videos from government.

Register on the New Digital Platform

When available, create a supplier profile to store business information in one place.

Keep your profile updated to avoid missing any opportunities.

Plan Your Bidding Strategy

Use published pipelines to anticipate upcoming public contracts and assess your resources.

Highlight your added value—such as community benefits and green initiatives—in tenders.

Review Internal Processes

Ensure you can demonstrate strong compliance and ethical standards to meet new integrity requirements.

Check your payment terms and processes to align with prompt payment guidelines.

Showcase Social Value

Emphasise how your firm supports local jobs, apprenticeships, and environmental targets. NFRC can help connect you with apprentice and labour schemes if needed – please contact NFRC Head of Careers Ruth Scarrott for more information - [email protected]

4. Further Support

  • Knowledge Drop for SMEs - Video series detailing how the Procurement Act 2023 will change tendering for SMEs
  • Knowledge Drop for Suppliers - Video series detailing the changes more generally
  • How the Procurement Act 2023 will impact social value
  • Government Advice on “What you need to do to get ready”.
  • Government Webinars to Support Readiness – Register here:
  • Thursday, 23 January 2025 (10.30-11.30)
  • Friday, 24 January 2025 (11.00-12.00)

NFRC is eager to track the rollout of the Procurement Act 2023 and its impact on our Members – if your business experiences any struggles under the new act, or observes things not working as they should, please contact [email protected]