By Cameron Mackenzie, Project Manager, Steel River Consultants
The Procurement Act 2023 came into force on the 24th of February 2025, replacing previous EU-based regulations with a streamlined, UK-specific framework. Designed to improve efficiency, transparency and flexibility, the new rules mark the biggest changes to regulation in the public sector for over 20 years.
For project managers in the construction industry like me, these changes bring new responsibilities, such as ensuring compliance, managing procurement risks and integrating procurement planning into project delivery.
At Steel River Consultants, we have been closely examining how these updates will shape the way we approach projects, ensuring our Cost and Project Management team (SRCPM) is fully aligned with the new framework to support both our clients and project teams effectively.
Key changes in the Procurement Act 2023
The new Act introduces several changes that will affect project managers:
- Greater transparency:
Project managers must ensure procurement decisions are clearly recorded and auditable. All contract notices will be published on a free-to-use Central Digital Platform, improving activity tracking across the public sector. Project managers need to:
- Keep detailed procurement records for audit purposes
- Ensure supplier selection is fair, transparent and well-documented
- Be prepared for more rigorous auditing and compliance checks
- More flexible tendering procedures
The Procurement Act 2023 has introduced the Competitive Flexible Procedure, which allows contracting authorities to tailor their procurement process to suit the project’s needs. While this increases flexibility, project managers must:
- Choose the most suitable procurement route
- Ensure supplier negotiations remain fair and compliant
- Engage with procurement teams earlier to align procurement strategies with project objectives
- A stronger focus on value for money
Contracts are no longer awarded on price alone. The Act places greater emphasis on long-term value and broader social benefits, meaning project managers must consider:
- Lifecycle costs by ensuring projects deliver long-term value
- Sustainability and social value by ensuring procurement decisions support wider economic and environmental objectives
- Innovation and efficiency by selecting suppliers that can provide smarter, more sustainable solutions
- Improved access for SMEs
The Act reduces barriers to supply chain entry for SMEs. Project managers will subsequently see a broader range of suppliers bidding for contracts. Project managers must:
- Stay informed about new supplier frameworks
- Set transparent but not restrictive supplier selection criteria
- Assess suppliers based on capability and compliance, not just experience
How project managers must adapt to the Procurement Act 2023
To align with the new rules, project managers will need to adjust their approach in several key areas:
1. Compliance from the outset
With stricter transparency rules, compliance must be embedded in project planning. This means:
- Keeping clear, auditable procurement records
- Working closely with procurement specialists
- Conducting regular internal compliance checks to avoid delays or legal challenges
2. Stronger procurement strategy and early engagement
Procurement is an integral part of project management, not just an afterthought. Project managers should:
- Engage with procurement teams early to align procurement timelines with project milestones
- Take a proactive approach to supplier engagement, mitigating risks before they arise
- Ensure procurement decisions support long-term project outcomes, not just cost savings
3. Enhanced risk and supplier management
With more flexible procurement rules and a greater focus on value, risk management must be more robust. Project managers should:
- Conduct thorough risk assessments, particularly for new SME suppliers
- Monitor contract performance throughout the project lifecycle
- Use digital procurement tools to track compliance and supplier performance in real time
At Steel River Consultants, we’ve embedded these principles into our project management approach, ensuring we help clients navigate the new procurement landscape with confidence.
SRCPM’s approach
We have taken a proactive approach to ensure our cost and project management team is prepared for the Procurement Act 2023, as well as our clients. We have done this by:
- Updating procurement workflows to align with the new legal framework
- Providing training to ensure compliance is fully understood
- Increasing collaboration between project managers, procurement specialists and legal teams
These steps ensure we continue to deliver cost-effective, risk-managed and compliant project solutions under the new regulations.
The Procurement Act 2023 represents a significant shift for project managers. Adapting to these changes requires a more structured approach to procurement, greater emphasis on compliance and proactive risk management. By embracing transparency, engaging early and refining procurement strategies, project managers can ensure smoother project execution under the new framework.
At SRCPM, we are committed to supporting our clients through these changes. If you need guidance on how the new Act may impact your projects, get in touch with me via cm@srcpm.co.uk today.
