The construction industry has always been challenging, but it seems that the post-COVID and post-Brexit years have compounded the difficulties, especially skills shortages in ground-level and upper-project manager roles.
However, the government’s Construction Playbook is a guide to streamline processes and help mitigate some of the risks for those involved in the public sector construction procurement process.
The Playbook is also designed to transform the construction industry by setting high standards for procurement business operations and professional conduct. It’s up to public sector suppliers to ensure the quality of their products, works, or services, as well as their business ethics, align with the government’s construction procurement requirements.
Public sector construction suppliers need to note that Central Government and Arms-length-bodies (ALBs) must comply with the requirements in the Construction Playbook.
There is little to no wiggle room, so construction contractors should familiarise themselves with the Playbook’s approach to the procurement of construction services. This includes framework agreements, the correct procurement methods, how to solicit bids, and how to ensure you have access to the necessary materials from an ethical supply chain.
It also covers the most important aspect of procurement; awarding contracts. This makes it one of the most impactful tools you can use in public sector construction procurement.
State Of The Construction Market
The construction sector is closely linked to national and global economies and is often the first industry to feel the pinch in a recession. After all, who can afford construction projects when belts are being tightened across the country?
By that same token, however, construction is one of the first industries to pick up when recessions end. It’s as if new construction projects are a measure of economic optimism. The higher the optimism, the higher the demand for construction projects and the associated services needed.
Currently, the market is optimistic, so it looks like 2024 is going to be a rosy year for public sector suppliers in construction. This is according to a report by Glenigan that estimates the 2024 market will grow by 12%.
One of the reasons for this is the government’s focus on construction works in the education sector. According to the Department of Education, 2024 is the launching pad for a 10-year construction project that includes building hundreds of schools and restoring over 800 educational institutions.
Top 10 Public Sector Suppliers In Construction
Now let’s look at 10 of the top construction project suppliers in the UK.
AECOM: Other specified construction activities not elsewhere classified
AECOM is a multinational construction company, specialising in infrastructure consultation. In the UK, its services include government construction project management, as well as designing, building, and financing large projects. Essentially, it provides specialised services throughout the construction project lifecycle.
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WSP UK: Engineering-related scientific and technical consulting activities
WSP UK provides innovative engineering solutions throughout the UK and Ireland. It prides itself on its ability to look at complex problems from different angles, bringing fresh eyes and innovative ideas to construction projects in local communities. Its services include social value via inclusive employment practices.
CSG Usher’s: Landscape service activities
Usher’s is an Arboricultural Association Approved Contractor whose services to local authorities in the UK are delivered on a contract or ad hoc basis. This includes work on highway trees, services needed at housing estates, and larger projects in public parks and gardens.
Liam McGough Tree Services:
Liam McGough Tree Services is also known as Tree Guy Liam McGough. The company provides services in North London and surrounding areas. It meets social value requirements with its dedication to maintaining the ecology of local communities.
AtkinsRealis: Other business support service activities not elsewhere classified
AtkinsRéalis is a multinational company that specialises in design, engineering, and project management with a particular focus on digitally enabled engineering. One of its primary aims is to connect people, data, and technology to transform infrastructure and energy systems on a global scale.
Mott MacDonald: Other engineering activities
Mott MacDonald is a multinational engineering, management, and development consultancy. It aims to deliver social outcomes (social value) alongside its solutions for a range of challenges, including construction project management, infrastructure finance, inclusive education, and global social development.
Jacobs UK: Other engineering activities & other business support services activities not elsewhere classified
Jacobs is another multinational company with a large contingent of employees in the UK, where it adapts its innovative solutions to the UK market. This includes tackling challenges in infrastructure, health and life sciences, advanced manufacturing, and national security.
https://www.jacobs.com/about/jacobs-uk
Bell Decorating Group: Painting, other building competing and finishing, roofing activities & other specialised construction activities not elsewhere classified
Bell provides specialist property services to clients throughout the UK. In addition to its services, including roofing, retrofitting and energy services, and void property management, Bell delivers social value to local communities and national projects. These include regeneration campaigns, charitable and volunteering services, and collaboration with communities to ensure their specific needs are met.
Thomas Bow City Asphalt: Construction of roads and motorways & construction of other civil engineering projects not elsewhere classified
Thomas Bow has been the go-to building and civil engineering contractor in the East Midlands for over 150 years. During this time, it has refined its services in road surfacing, facilities management, and various construction projects for the public sector.
Wates Construction: Construction of commercial buildings
Wates has provided the UK with their expert construction services for over 125 years. They cater to both the public and private sectors, providing emergency services as well as residential, retail, high-street, and commercial construction projects.
SMEs And The Public Sector Construction Industry
Government construction contracts tend to be quite big; often too big for SMEs to handle. However, that doesn’t mean that SMEs are out of the game.
Some large construction companies (called primes) give SMEs a chance to participate in the procurement process through strategic partnerships.
Usually, these are SMEs that fill a gap in the construction contract, especially when it comes to localised services. For example, project requirements in large construction contracts might include regular charity events to raise funds for good causes within local communities.
Local SMEs that specialise in fundraising or event hosting help large companies meet that (social value) requirement.
No muss, no fuss
Partnering with primes is an easy way for small and medium construction contractors to gain experience in the construction process without worrying about successful procurement management, including risk allocation, potential cost fluctuations and the responsibility to ensure compliance with industry regulations at every stage of the procurement plan.
The joint venture is also great for building relationships with influential procurement managers, networking with multiple suppliers and contractors, and collaborating with other construction project teams.
Marketing To Public Sector Construction Companies
There is one truth in all transactional industries with give-and-take.
If you aren’t visible, you’ll always be invisible.
Successful marketing campaigns are the best way to announce your presence in the construction procurement sector and establish yourself as an expert in the procurement process with a talent for adapting to schedule changes and still delivering contracts ahead of the project schedule.
The elements that go into a successful procurement marketing campaign vary by industry, company, and area of specialisation, however, there is one truth that applies to all marketing strategies.
Provide solutions for pain points.
This requires research, but a good place to start is with trends in construction management and procurement methods.
For example, sustainability and net-zero carbon emission goals are major trends in construction procurement.
If a contracting authority has a limited environmental impact plan, a marketing campaign that emphasises your social value, and how it relates to your services, is likely to grab more attention than contractors who punt their economic achievements above all else.
Nail Your Procurement Marketing Campaign Without The Grunt Work
Getting your marketing strategy right takes a lot of work, especially when it comes to research. Rather than waste time and resources burying yourself in research, hunting for more detail on the market and putting together an effective procurement marketing campaign, consult a marketing agency that specialises in B2G (business-to-government) marketing.
For decades, Cadence Marketing has worked with public sector suppliers and contractors, developing successful strategies for construction contracts that increase brand awareness and establish a reputation for service excellence in the competitive public procurement market.
Contact us to book a free consultation and find out how you can take advantage of our market research skills to build a strong presence in local, national, and even global construction procurement.
