Frameworks vs PSAs vs DPS: Choosing the Right Construction Tendering Model

In today’s competitive construction industry, understanding how to access and navigate tendering opportunities is crucial. With several tendering models available, selecting the right one can be challenging—yet it plays a significant role in your company’s long-term growth.

Did you know that 85% of construction companies miss out on opportunities because they lack clarity on procurement routes? Whether you are considering a Framework Agreement, Procured Service Arrangement (PSA), or Dynamic Purchasing System (DPS), choosing the right tendering model can give your business a strategic advantage.

This guide will help you explore each option, their key differences, and how to decide which model aligns best with your business goals.

What Are the Main Construction Tendering Models?

In the UK, procurement in the construction sector follows a few primary models. Understanding the distinctions between Framework Agreements, Procured Service Arrangements, and Dynamic Purchasing Systems is vital when planning your tendering strategy.

Framework Agreements (FA)

Framework Agreements are long-term agreements with pre-approved suppliers. While they set out terms and conditions for future contracts, they do not guarantee any specific work.

Key Features:

• Pre-agreed terms mean no need to renegotiate for every new project.
• Multi-year agreements provide a reliable pipeline of potential opportunities.
• Limited competition once approved reduces tendering effort.
• Easier access to multiple tenders through a single entry point.

Best for: Established construction firms with the resources to deliver ongoing contracts and who seek strong relationships with public sector clients.

How Construction Tenders can help: We identify relevant frameworks, prepare your pre-qualification submissions, and support bid responses throughout the agreement period. Explore our Framework Support Services.

Discover how our framework bid services can support your long-term contract strategy.

Procured Service Arrangements (PSAs)

PSAs are designed for service-based procurement where the scope of work may evolve. These are ideal for maintenance, facilities management, or other recurring service contracts.

Key Features:

• Flexible agreements that adapt to changing service requirements.
• Better suited to recurring contracts with consistent delivery.
• Can be more cost-effective due to tailored scopes.

Best for: Specialist service providers delivering ongoing or repeatable work.

How Construction Tenders can help: Our bid writing team ensures your PSA submission highlights your unique capabilities, service standards, and value proposition. See our Bid Writing Services.

Learn how our bespoke bid support helps service-based providers win more contracts.

Dynamic Purchasing Systems (DPS)

A DPS is an open procurement system where suppliers can join at any time. It is used mainly for repetitive purchases of services or works.

Key Features:

• Continuous onboarding of new suppliers.
• Increased flexibility and responsiveness to tenders.
• Faster procurement processes for buyers and suppliers.

Best for: SMEs seeking frequent opportunities without committing to long-term frameworks.

How Construction Tenders can help: We monitor live DPS opportunities and provide tender alerts tailored to your business profile. Sign up for our Tender Monitoring Service.

Gain quick access to public sector tenders with our real-time DPS alerts.

Key Differences Between Frameworks, PSAs, and DPS

Understanding the main differences will help you align your resources and goals with the right procurement route:

Criteria	Framework Agreement	Procured Service Arrangement	Dynamic Purchasing System
Contract Length	Multi-year (3–5 years)	Fixed period (varies)	Ongoing
Access to Projects	Pre-approved suppliers only	Based on service scope	Open entry
Competition	Low	Medium	High
Flexibility	Low	High	Very high
Best For	Established contractors	Service providers	Growing SMEs

Not sure which route fits your goals? We can assess your eligibility across all models and prepare you for successful entry.

Why Choose the Right Construction Tendering Platform?

Choosing the right tendering model is only part of the equation. You also need a reliable platform that helps you track and win tenders efficiently.

Benefits of using Construction Tenders:

• Tailored alerts keep you informed of the most relevant opportunities.
• Custom filters by sector, location, or contract value improve targeting.
• Full lifecycle support from alert to bid submission.
• Expert bid writers to maximise your success rate.

How we support your success: Our platform helps you avoid missed opportunities and focus your resources on tenders with the highest ROI. Discover our Full Tender Support Packages.

Streamline your tendering process with expert support from Construction Tenders.

Conclusion: Choose the Right Tendering Model for Success

Selecting the most suitable tendering model is essential for business growth in the construction industry. Frameworks offer stability, PSAs offer adaptability, and DPS allows continual access to new work. Your decision should reflect your strategic priorities, service offering, and operational capacity.

Construction Tenders is here to guide you through each model. From identifying the right routes to delivering standout submissions, we ensure you approach every opportunity with confidence.

Contact us today to receive tailored tender alerts or request a free consultation with our bidding team.

FAQs About Tendering Models in the UK

1. What are the benefits of a Framework Agreement over a DPS?Framework Agreements offer longer-term stability and reduced competition, making them ideal for consistent contract pipelines. DPSs are more flexible but highly competitive.
2. Can small construction companies benefit from a DPS?Yes, DPSs provide open access to public sector tenders, making them well-suited for SMEs looking to grow.
3. How do I know which tendering model to choose?Base your decision on your company’s capabilities, capacity, and long-term objectives. Consider if you need consistent work, service flexibility, or a mix of both.
4. What should I do if I don’t know which model fits my business?Speak with our expert team. We can assess your needs and recommend a strategy aligned with your business goals. Contact us for personalised guidance.

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