Sentiment Towards Procurement: Progress, Pressure, and the Push for Reform
Procurement lies at the heart of construction delivery, shaping how projects are structured, priced, and managed. To understand how the industry views current practices, the Centre for Construction Best Practice (CCBP) gathered insights from 44 contractors and consultants operating across the UK Built Environment Sector.
Collectively, their views provide a powerful snapshot of industry sentiment, highlighting where procurement is showing signs of progress and where deep-rooted concerns persist. While there is evidence of a shift toward more collaborative approaches, frustration remains over lowest-price tendering, cost inflation and the fairness of existing models.
Survey Signals of Progress
CCBP’s Industry Confidence Report shows encouraging signs that procurement models are evolving. A substantial 74% of respondents reported involvement in early contractor engagement or collaborative procurement routes. This indicates that the sector is gradually moving away from transactional approaches, opening the door to models that allow clients, contractors and consultants to shape delivery strategies earlier, reduce risks, and bring innovation to the table.
Similarly, 65% of respondents agreed that current procurement practices align with their organisation’s capabilities. While not a resounding endorsement, this reflects that many contractors feel they are able to compete effectively within existing processes. Encouragingly, 81% of respondents reported that their tender win rate over the last six months has been strong, signalling that contractors are not only finding opportunities but also securing work in a competitive market.
Together, these findings suggest that procurement reform efforts are beginning to bear fruit, creating more space for dialogue, collaboration, and capability-driven tendering.
Persistent Disconnects
However, optimism is tempered by notable challenges. A critical 60% of respondents said cost increases are not adequately recognised in client budgets. With inflation and rising material prices reshaping project viability, this disconnect risks leaving contractors exposed to unsustainable margins.
Qualitative responses, discussing the changes respondents would most like to see in the way the industry operates, sharpen this concern, pointing to widespread dissatisfaction with lowest-price tendering. Calls for change were strikingly consistent:
- “A more permanent shift away from lowest fixed price tendering and towards early contractor involvement.”
- “Move away from price only tendering.”
- “Fair and transparent procurement routes.”
These comments illustrate a sector fatigued by transactional models that prioritise short-term savings at the expense of quality, innovation, and long-term value. Contractors are asking not just for more collaboration, but for procurement that realistically reflects the cost environment and rewards the broader contributions they can bring.
Why Reform Matters Now
Procurement reform is a necessity for resilience. Lowest-price tendering often pushes risk down the supply chain, fuelling disputes, eroding margins, and contributing to contractor insolvencies. When budgets fail to track with inflation, the result is delivery models that are financially unsustainable and operationally fragile.
On the other hand, collaborative procurement offers a pathway to efficiency and innovation. By involving project teams earlier, clients can tap into supply chain expertise, improve buildability, and align budgets with real-world market conditions. This not only improves project outcomes but strengthens trust between clients and delivery partners.
A Sector Ready for Change – Procurement Act
It’s clear from the Industry Confidence Report that reform in procurement is one of the single biggest changes the industry would like to see. Respondents expressed a desire for models that go beyond cost, emphasising best value, quality, and fairness.
This shift aligns closely with the direction of the Procurement Act 2023, which is set to replace the long-standing “Most Economically Advantageous Tender (MEAT)” principle with the “Most Advantageous Tender (MAT)” approach. The change represents an important signal from government – one that encourages buyers to consider wider factors such as sustainability, innovation, and social value alongside cost.
However, the transition from policy to practice will take time. Contractors remain cautious, with many noting that current procurement routes still lean heavily on lowest-cost decision-making. The challenge now is ensuring that the principles of MAT are fully embedded in day-to-day procurement — creating processes that genuinely prioritise value over price.
The momentum is there: growing involvement in collaborative routes, recognition of capabilities, and positive sentiment toward fairness in procurement all point to gradual progress. But for change to be truly transformative, procurement needs to:
- Move decisively beyond lowest-price tendering, embedding value-based evaluation that rewards innovation, sustainability, and quality.
- Acknowledge cost realities, ensuring budgets track inflation and market pressures to protect financial viability.
- Deepen collaboration, with earlier contractor involvement becoming the norm, not the exception.