Procuring steel in major projects
On 2nd November emergency government measures to address the fledgling UK steel industry were introduced, requiring that main contractors reveal the sources of their steelwork when bidding for major projects.
Such measures come in the wake of the Tata Steel plant closure in Scunthorpe and in response to concerns that projects such as HS2 will incorporate large quantities of cheap steel imported from China, thereby casting doubt on the long-term viability of UK steelwork fabricators and suppliers.
Clients like HS2, Network Rail and Highways England will require that contractors set out details of how and from which supplier their steel will be sourced. Public works contracts will stipulate that if a supplier has not been selected at contract award, the main contractors and relevant steelwork firms must advertise openly for steel supply opportunities.
The ‘Procurement Policy Note: Procuring steel in major projects’ guidance is intended to support UK steel suppliers in competing for government contracts, and applies to all infrastructure, construction or any major procurement project with a total steelwork content valued at over £10m.
The key actions introduced by the guidance are:
- Signaling future pipelines of demand for steel: The aim is to give suppliers greater confidence to plan for the future, and support a more strategic approach to the management of supply markets.
- Effective pre-procurement engagement: It is thought that this will help to stimulate increased competition and give potential suppliers a better understanding of the nature of the requirement, intended approach, committed volumes and scale.
- Supply chain transparency and advertising supply chain opportunities.
- Assessing potential suppliers in the supply chain at selection stage: The aim is to ensure that all key subcontractors responsible for the delivery of steel are compliant with the relevant health and safety and employment legislation of the country in which they are based.
- Ensuring value for money is calculated on a whole-life cost basis: The award of contracts should be on the basis of the most economically advantageous tender.
- Evaluating social and environmental benefits and impacts.
- Managing contractors’ obligations.
Paymaster General Matthew Hancock said: “By asking procurers on major UK projects to consider social and environmental impacts, we are building a Britain that is happier, healthier and better off.
"We will always strive to get the best value for money for taxpayers and we are going to do so in a way that strengthens our economy and bolsters the long-term prosperity of people across the country.
I don’t want contracts going abroad if the best bid is a British bid with all the social and economic benefits that brings.”
You can read the government's guidance report here.
Featured articles and news
The Building Safety Forum at the Installershow 2025
With speakers confirmed for 24 June as part of Building Safety Week.
The UK’s largest air pollution campaign.
Future Homes Standard, now includes solar, but what else?
Will the new standard, due to in the Autumn, go far enough in terms of performance ?
BSRIA Briefing: Cleaner Air, Better tomorrow
A look back at issues relating to inside and outside air quality, discussed during the BSRIA briefing in 2023.
Restoring Abbotsford's hothouse
Bringing the writer Walter Scott's garden to life.
Reflections on the spending review with CIAT.
Retired firefighter cycles world to raise Grenfell funds
Leaving on 14 June 2025 Stephen will raise money for youth and schools through the Grenfell Foundation.
Key points for construction at a glance with industry reactions.
Functionality, visibility and sustainability
The simpler approach to specification.
Architects, architecture, buildings, and inspiration in film
The close ties between makers and the movies, with our long list of suggested viewing.
SELECT three-point plan for action issued to MSPs
Call for Scottish regulation, green skills and recognition of electrotechnical industry as part of a manifesto for Scottish Parliamentary elections.
UCEM becomes the University of the Built Environment
Major milestone in its 106-year history, follows recent merger with London School of Architecture (LSE).
Professional practical experience for Architects in training
The long process to transform the nature of education and professional practical experience in the Architecture profession following recent reports.
A people-first approach to retrofit
Moving away from the destructive paradigm of fabric-first.
International Electrician Day, 10 June 2025
Celebrating the role of electrical engineers from André-Marie Amperè, today and for the future.
New guide for clients launched at Houses of Parliament
'There has never been a more important time for clients to step up and ...ask the right questions'
The impact of recycled slate tiles
Innovation across the decades.
EPC changes for existing buildings
Changes and their context as the new RdSAP methodology comes into use from 15 June.