Following the long-awaited implementation of the Procurement Act 2023, conversations from across the built environment are changing from what happens when, to what happens now. For many, the post-February landscape has been a pipe dream, with little known about what the terrain will look like as everyone begins to find their feet.
The question of “what now” is one that our panel of experts for the latest Pagabo Live looked to decipher, in a bid to help the likes of stakeholders and local authorities in hitting the ground running with achieving effective procurement following the reform.
Led by our host Tom Snee of Cartwright Communications, the session brought together experts on the topic, including our head of procurement Shamayne Harris, Tim Care, partner at Ward Hadaway and Kieran McGaughey, consultant solicitor and procurement law trainer.
A whole new procurement world
Kicking off, we asked our attendees how confident they felt navigating the new regulations now that the act is live. Responses showcased that a majority of 83% sat across the middle ground – feeling ‘not completely confident’ or ‘somewhat confident’.
The lead up to the go-live date was considerable – especially with a four-month delay. Nuances have changed, and more updates or clarity came through, meaning that even since our last Pagabo Live session on the act in December 2024, things have evolved.
Our panellists gave insight into how the landscape shifted, with Shamayne commenting on how the government has bolstered its offering from within. This includes the Procurement Review Unit (PRU) being established within the Cabinet Office and the enhancements made to the ‘find a tender’ service.
Change itself is always perceived differently, and it’s important for us to assess how the initial implementation of the act and corresponding changes have been received across our industry. Kieran commented here that it almost seems underwhelming, but this is not particularly surprising due to the increase in movement seen in relation to notices published before the regulations changed. Looking at the numbers, on the day of broadcast, the newly-improved ‘find a tender’ service was showcasing just 83 notices above the £1m mark. So, a slow start, but Kieran expects this to pick up.
Elsewhere, Tim spoke on the range of views from public sector clients. Many are either seeing themselves unaffected by change just yet – or they are embracing it. The reflection seems to be that the supplier registration process has been a lot simpler than first anticipated, with industry reactions being positive overall.
From a Pagabo perspective, Shamayne suggests that effective implementation of the act is centred on three things – effective transition between the old and new, learning and development, and the improvement of processes. All of these come down to the adaptability of public sector organisations.
With our second poll questions, we asked attendees what their biggest challenges have been in preparing for the Procurement Act. With the option to select multiple answers, the statistics show the portion of the audience citing each reason, with the split of responses below.
- Understanding new terminology and processes – 60%
- Ensuring compliance – 40%
- Accessing clear guidance and support – 38%
- Managing procurement decisions and reporting – 29%
- Other – 3%
So, it’s clear to see that people’s concerns are centred around getting things right under the new regime to ensure compliance – showing a drive to make the new regulations a success in achieving their goals.
Managing misconceptions
Our panel also took a deep dive into the misconceptions or compliance risks public sector teams should be aware of.
There are a few areas where misconceptions may be prevalent, but a standout focus is social value, as Kieran highlighted. There is confusion being seen on what is expected in relation to social value efforts in line with the act. It’s also worth mentioning here the different weight that various points of policy hold. The National Procurement Policy Statement, Procurement Act 2023 and Procurement Policy Note 002, all hold variable weight, and organisations need to be clear on the differences.
Misconceptions surrounding contract visibility is also prominent. Many in the industry are unclear at what point supplier performance on other projects is visible to all, with Kieran confirming it is likely on projects valued at more than £5m – though there will be various exceptions.
Commenting on compliancy of PCR15 contracts, Shamayne clarified there is no transition under the new act. Frameworks or procurements will be compliant to the regulations they commence under. The act is not applied retroactively, meaning those contracts commenced prior to 24 February will remain compliant even now new legislation is in force.
Best practice and guidance
When speaking on best practice, contract management was a clear focus. Kieran commented that getting the right individual in that contract manager position is absolutely key. It’s also necessary that people need to be afforded the time to also do the job properly, alongside effective legal and communications training. KPIs are also incredibly important, with projects valued at more than £5m expected to have at least three KPIs set.
This is where pre-market engagement is so important, with Shamayne commenting that having this effective engagement early on can make or break KPIs – both in set properly (under suggested SMART guidance) and actually being achieved. KPIs have to be a core consideration at the planning stage of projects.
Speaking on how valuable guidance documents have been, Tim commented here that he was sceptical of what government guidance would look like, only to be pleasantly surprised. Not only did Tim cite his belief that the government guidance was well-thought out, but that the 40 to 50 pieces are not too heavily technical, making them much more user-friendly.
It is important to note however, that this is not statutory guidance. Judgement is needed and if anything, the act itself is still the clearest indicator for those that are unsure. The final question to our panellists related to what practical steps public sector teams can take to stay compliant and confident. The first step is to update your own procurement policy – if you haven’t already. From there, effective record-keeping, and allowing ample time for planning stages will help with the all-important confidence and compliance under the new regulations.
Knowledge is power
We also opened the floor for questions from our audience. When asked about suggestions for effective pre-market engagement, Shamayne mentioned that the key to this is communication through and through. Alongside this, it’s important to keep a log of engagements and utilise streamlined process for engagement itself such as surveys – which will also support with relevant team resource and flexibility.
Another question was on the topic of conflict assessments within the procurement process and who may fall into the category of needing one, with the overall advice that whoever has influence on the process should have an assessment and it’s always better to be safe than sorry.
To end the session, we asked our audience again on their confidence levels around the Procurement Act, with more than half (57%) citing feeling ‘confident’, compared to the start of the discussion. Our aim with Pagabo Live is to help grow public sector knowledge – and even more resources on the new act can be found in our procurement reform knowledge hub.
Claim your CPD credit
Pagabo Live now has a CPD accreditation for its knowledge offering. If you are tuned in live to our sessions, you will receive a link via email afterwards to claim your CPD credit.
Our next Pagabo Live session will be on Wednesday 16 April, on the topic of the private funding initiative and whether it can get Britain building. Click here to register: https://pagabo.co.uk/pagabo-live/
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