Navigating the Procurement Act 2023: What UK Contractors Must Know

The Procurement Act 2023 UK has officially come into force as of October 2024, with 2025 marking the first full year that UK contractors must navigate this new legal framework. For many small and medium-sized construction businesses, this is both a challenge and a huge opportunity.

The Act aims to streamline and simplify public sector procurement in the UK—creating a more open, transparent, and competitive environment. But for contractors that want to win public sector construction tenders, understanding how the new rules affect your bidding strategy is essential.

Whether you’re relatively new to public procurement or have a few tenders under your belt, this guide will break down what the Procurement Act 2023 means for you—in plain English, with construction-specific insights.

1. Understanding the Procurement Act 2023: What’s Changed?

The new Procurement Act 2023 UK replaces four key sets of regulations, including the Public Contracts Regulations 2015, and introduces a single, unified regime. It affects all public bodies in England, Wales, and Northern Ireland (Scotland operates under separate legislation).

For contractors, the key changes include:

• New procurement procedures: The Act introduces a simplified competitive tendering approach—moving from multiple procedures to just two key routes: “Open” and “Competitive Flexible”.
• Increased transparency: More information must now be published at each stage of the procurement process—great news for SMEs looking to improve future bids.
• A central digital platform: All notices (tenders, award, transparency etc.) are being routed through a new central UK procurement portal.
• MAT-weighted awards: Award criteria must now be based on the Most Advantageous Tender (MAT), with social value, sustainability and innovation playing a stronger role.

For the construction industry, this could change how you position your supply chain capabilities, carbon reduction plans, and community benefits in your bids.

2. What UK Construction SMEs Should Do Differently in 2025

With the new rules now live, here’s how construction SMEs should adapt to stay competitive:

a. Get familiar with MAT scoring

The old MEAT (Most Economically Advantageous Tender) is out. The new MAT system requires you to go beyond price. You must now show:

• Social value contributions (e.g. local employment, apprenticeships)
• Environmental impact reductions (e.g. net zero strategies)
• Innovation and delivery efficiency

Example: A local civil engineering firm bidding for a local authority highways contract in 2025 could score higher if it offers to source materials locally and employ apprentices from the surrounding area.

b. Build your bid library around new terminology

Your bid templates and boilerplate content need updating to reflect the new language and expectations in the Procurement Act. These include:

• “Contracting Authorities” instead of “buyers”
• “Transparency Notices” and “Pipeline Notices”
• MAT criteria references

Make sure your past performance, CVs, and case studies clearly show compliance with these evolving priorities.

3. Take Advantage of the New Transparency and Pipeline Rules

Under the new rules, public sector buyers must publish more detailed information about upcoming contracts—especially over £2 million in construction value.

This means:

• You can spot opportunities earlier
• You’ll see who wins contracts and why
• You can prepare smarter, earlier, and more competitively

Use case:

In June 2025, a regional council published a Pipeline Notice for a £5m school refurbishment programme starting in early 2026. A small contractor that spotted this in advance used the lead time to develop a compelling carbon reduction plan and line up subcontractors—giving them a head start before the formal tender was even published.

4. Common Mistakes to Avoid Under the New Law

The new system is designed to level the playing field—but only if you adapt properly. Here are a few traps to avoid:

• Relying on old bid templates: These may no longer meet the legal or scoring requirements of 2025 tenders.
• Ignoring social value: Even low-value contracts will now assess this—don’t leave it blank or write generic statements.
• Missing PINs and notices: If you’re not monitoring the new central procurement platform, you’ll miss opportunities others are preparing for months in advance.
• Undervaluing feedback: Under the Act, you’ll get better post-bid debriefs. Use them to sharpen your next tender.

5. How to Future-Proof Your Construction Tendering Strategy

With construction law evolving and UK public sector procurement changes now active, here’s how you can stay ahead:

• Train your bid team (or get external support) on the Procurement Act’s terminology and expectations
• Review your supply chain and subcontractors—can they support your sustainability and social value promises?
• Use bid writing professionals with a track record of MAT-compliant submissions
• Create or update your policies on carbon, safeguarding, modern slavery, and prompt payment to match Act requirements

Practical step:

Build a ready-to-go ‘Tender Toolkit’ with all the MAT-weighted documentation a 2025 buyer expects—CVs, method statements, case studies, carbon plan, social value template, insurance certs, accreditations, and more.

Conclusion: Stay Ahead of the Curve

The Procurement Act 2023 has reshaped the way public construction contracts are awarded in the UK. For SMEs, this is a golden opportunity—if you can adapt quickly, align with MAT scoring, and anticipate buyer priorities.

Don’t let outdated documents or unclear strategy hold you back. Now’s the time to sharpen your approach, improve your visibility, and compete with confidence in the new era of construction tenders law 2025.

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

FAQs:

1. What is the Procurement Act 2023 and when did it come into effect?

The Procurement Act 2023 is the UK’s post-Brexit legislation that replaces previous EU-based procurement laws. It came into force in October 2024, and applies to all public sector procurement in England, Wales, and Northern Ireland. It introduces new procedures, a central procurement platform, and changes to how tenders are evaluated.

2. How does the Procurement Act 2023 affect construction tenders in the UK?

Construction tenders must now comply with MAT (Most Advantageous Tender) criteria, which means price alone won’t win contracts. Public sector buyers must consider social value, environmental impact, and innovation, making it essential for construction SMEs to align bids with broader policy goals.

3. What is the difference between MEAT and MAT under the new rules?

Under the old rules, tenders were evaluated using MEAT (Most Economically Advantageous Tender)—primarily focused on cost. Now, the Act requires MAT scoring, which considers not just cost, but also social, environmental, and innovation factors—especially important in construction procurement.

4. How can I find new construction opportunities under the new Act?

Public sector buyers must now publish more detailed notices, including Pipeline Notices and Transparency Notices, on the central UK procurement portal. Monitoring this platform regularly gives you earlier visibility of upcoming projects, allowing more time to prepare competitive bids.

5. What should my construction SME do now to stay compliant in 2025?

Start by reviewing and updating your bid library to reflect the new MAT criteria. Ensure you have relevant policies (e.g. carbon reduction, social value), and build a tender-ready toolkit with updated case studies and method statements. You can also download our free Procurement Act 2023 Checklist to make sure you’re fully prepared.

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• Building construction contracts for tender
• A Guide to Finding the Best Construction Bid Sites
• Bricklaying Tenders & Advice for SMEs