NFRC Welcomes Procurement Act 2023

NFRC Welcomes Procurement Act 2023, Applauds intention of simplification for SME involvement

NFRC (National Federation of Roofing Contractors) welcomes the new Procurement Act 2023, which takes effect today. The legislation aims to improve public procurement practices across the UK by enhancing opportunities for small and medium-sized enterprises (SMEs), prioritising social value, and ensuring greater transparency and value for taxpayer money.

Under the Act, all public sector contracts must now pay invoices within 30 days of receipt—a change NFRC hopes will promote better payment culture throughout across construction.

“Poor payment practices continue to unfairly strain the finances of roofing and cladding businesses, critically harming growth potential and jeopardising the government’s housing targets,” said NFRC Group CEO James Talman. “I hope that better payment standards from local authorities will strengthen the culture across the industry.”

The new focus on awarding contracts based on the “Most Advantageous Tender” rather than simply the lowest bid is another significant step. NFRC underscores the importance of looking beyond initial costs to the whole-life value of buildings, with maintenance and operational expenses often making up the bulk of a building’s lifetime costs.

“Up to 80% of a building’s lifetime costs are operational,” Talman noted. “Procuring authorities have an excellent opportunity to focus on sustainability and high-quality workmanship to deliver real value throughout a building’s existence, not just what appears cheapest at the outset. For quality work, they must look to quality and competent workers, like those represented by NFRC members.”

Additionally, the Act introduces a central debarment list designed to exclude underperforming suppliers—as well as their associated suppliers and subcontractors—thereby raising standards across the supply chain.

“The new central debarment list must be proactively used to enforce best practice across the construction sector,” Talman said.

NFRC is also encouraged by the Act’s emphasis on social value and the potential benefits of simplified bidding processes for SMEs—particularly those that invest heavily in apprenticeships.

“SMEs continue to deliver an outsized proportion of apprenticeships, and it is high time they are recognised for this essential support to sustain our industry,” said Talman. “We hope these changes, along with a focus on the Most Advantageous Tender, will deliver real benefits for NFRC members and the wider industry.”

Make sure you also take a look at our article on How to Prepare and Take Advantage of New SME Benefits.