Trade bodies press ministers to toughen procurement reforms on standards

Thomas Edwards | 9th February 2026 | Trade Associations
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Trade bodies and unions in the UK construction and engineering sectors have called on ministers to revise the government’s latest procurement reforms to strengthen standards and address what they describe as a persistent low price culture in public contracts.

Industry groups including the Electrical Contractors’ Association and the Building Engineering Services Association, alongside unions such as Unite and GMB, have written to business minister Chris McDonald urging a co designed and expedited approach to implementing changes to procurement rules. The coalition says the government’s proposals still place undue weight on lowest upfront cost in public tenders, undermining efforts to invest in skills, apprenticeships and stable employment and potentially increasing risks such as reworks, delays and disputes on major projects. The call for change comes amid the ongoing rollout of the UK’s reformed procurement regime following the enactment of the Procurement Act 2023, which overhauled longstanding EU derived rules and set new priorities for transparency, SME access and social value in public contracting. Government guidance published under the Transforming Public Procurement programme has set out aims to widen access for small and medium sized firms, embed transparency across the procurement lifecycle and ensure value for money alongside broader objectives such as job creation and supplier resilience. The trade bodies’ letter urges that subcontractors be required to meet the same recognised workforce competence and training standards as tier one contractors on public contracts. It calls for mandatory verification of competence and employment standards to be treated as eligibility requirements rather than voluntary commitments. The signatories argue that skills shortages continue to drive up costs and constrain capacity across the sector, and that consistent standards across supply chains are necessary to deliver major infrastructure, housing and net zero programmes. The intervention reflects wider industry debate over how the new procurement framework will operate in practice. While the reforms aim to simplify processes and encourage SME participation, concerns remain about transparency and access to opportunities. Previous reporting has pointed to the continued use of complex framework agreements and inconsistent publication of contract awards, which can limit visibility for smaller suppliers and favour larger incumbents. Government responses have reiterated that procurement reform is intended to support economic growth and improve outcomes for workers and taxpayers. Officials have said the revised rules already prioritise domestic jobs and skills and are designed to reward suppliers that invest in training and deliver high quality employment as part of public contracts. Further guidance and secondary legislation are expected as the new regime beds in. Alongside these assurances, ministers have highlighted measures aimed at improving access for smaller businesses and voluntary organisations. Departments are required to set targets for direct spend with SMEs, promote prompt payment through supply chains and remove unnecessary barriers to bidding. These steps are presented as central to ensuring the benefits of public spending are spread more evenly across regions and sectors. Some industry groups see scope for aligning these SME focused measures with tougher workforce standards to create a more stable market. They argue that clearer expectations around skills and competence could reduce delivery risk and improve safety, while broader participation could strengthen resilience across the supply chain and support regional economies. Despite this, trade bodies warn that without mandatory competence requirements and stronger incentives for quality alongside cost, public procurement may continue to reward the lowest bid. They argue this risks repeating patterns that have contributed to poor workmanship, safety concerns and weak productivity across parts of the construction sector. The Procurement Act 2023, which received Royal Assent in late 2023, is central to the post Brexit overhaul of public procurement. It replaced previous regulations with a framework intended to simplify procedures, increase competition and align purchasing decisions with national priorities. Trade bodies are now pressing for implementing regulations to reflect their concerns as consultations continue....

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