What Is Construction Procurement?
Procurement, in the construction sector refers to the structured process of appointing a suitably skilled team including contractors, consultants and suppliers to deliver a defined programme of works, at an agreed cost, within agreed timelines and to an agreed standard.
Procurement is a strategic process that determines how risk is allocated, how costs are managed and how performance is guaranteed across a project lifecycle.
Example of the key issues in a procurement process include:
- Design liability:
- who takes responsibility for errors in drawings or specifications?
- Delays and disruption:
- how are risks related to late delivery managed?
- Errors in documents:
- what happens if the tender or contract documentation is flawed?
- Change management:
- how are variations to scope and cost handled fairly?
Procurement Routes & Strategies
The choice of procurement strategy should reflect the project complexity, risk appetite and delivery timeline.
Traditional (Design-Bid-Build)
- Advantages:
- clear separation of design and construction
- competitive pricing.
- Disadvantages:
- longer timeline
- limited contractor input during design
Design and Build (D&B)
- Advantages:
- single point of responsibility
- faster delivery
- cost certainty.
- Disadvantages:
- less client control over design
- potential quality compromises
Construction Management (CM)
- Advantages:
- fast-tracked programme
- flexibility in design and package tendering.
- Disadvantages:
- higher management risk for client
- less cost certainty
Management Contracting
- Advantages:
- flexible and suited for large or complex schemes.
- Disadvantages:
- client retains significant risk
- complex contract structure
Public-Private Partnerships (PPP/PFI)
- Advantages:
- long-term funding
- transfer of operational risks
- Disadvantages:
- complex negotiations
- long-term contractual exposure
Key UK Procurement Laws and Regulations
Procurement in the UK, particularly for public sector construction projects, is governed by a robust legal framework to ensure fairness, transparency, and value for money:
Procurement Act 2023
Introduced a unified legal framework for public procurement across the UK, simplifying rules and enhancing supplier engagement.
Procurement Regulations 2024
Secondary legislation under the Procurement Act 2023, detailing procedures for competitive tendering, transparency obligations, and remedy mechanisms.
National Procurement Policy Statement (NPPS)
Outlines strategic priorities such as promoting innovation, social value, and climate- related goals in procurement decisions.
Our Construction Procurement Legal Services
Our team supports clients across every stage of the procurement cycle, from project conception to completion, decommissioning, or termination.
Procurement Strategy Advice
We help clients assess project objectives, risk tolerance and delivery constraints to recommend the most appropriate procurement route.
Tender and Bid Management
We assist clients in drafting and reviewing Pre-Qualification Questionnaires (PQQs) and Invitations to Tender (ITT) and provide advice on tender evaluation criteria and scoring matrices.
Negotiation and Contractor Appointment
We lead or support negotiations with preferred bidders, ensuring contract terms reflect agreed deliverables, risk allocations and liabilities.
Advising on Appropriate Forms of Contract
We advise on and draft construction contracts, including standard form JCT, NEC and FIDIC contracts, as well as bespoke contracts, in line with the selected procurement method.
Legal Support on Challenges
Whether you are facing a procurement challenge or seeking to challenge an unfair award, we advise on pre-action correspondence, standstill notices and injunctions.
Why Choose Us?
We understand that procurement is a substantial undertaking in any construction project. We aim to alleviate the procurement burden and to free our clients to focus on project delivery.
We deliver practical, tailored and innovative solutions designed to achieve the best possible outcomes for our clients.
Contact our construction procurement solicitors today
Whether you are a developer, contractor or public authority, we offer cradle to grave support on construction procurement. Contact Paul O’Donnell at paul.odonnell@ilaw.co.uk or 07521417579 to discuss your project or tender.
