- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 04 May 2018
SMEs and government contracts
In the wake of Carilion's collapse, which highlighted the government's reliance on large suppliers to deliver contracts, the measures will exclude suppliers from major government procurement processes unless they have fair payment practices for their subcontractors. The proposals will also allow subcontractors greater access to buying authorities to report poor payment performance.
Suppliers will be required to advertise subcontracting opportunities through the Contracts Finder website, and provide data showing how businesses in their supply chain are benefiting from supplying central government.
Oliver Dowden, Minister for Implementation, said; "This government is listening to the business community and is committed to levelling the playing field for smaller suppliers to win work in the public sector. We have set a challenging aspiration that 33% of procurement spend should be with small businesses by 2022 - and are doing more than ever to break down barriers for smaller firms."
Federation of Small Businesses National Chairman, Mike Cherry, said; "Each year, the UK public sector spends over £200 billion on goods and services from third parties. As such a large and prominent customer in the economy, the government has a pivotal role to play in demonstrating what it is to be a good client. It is right then that the government today announces, as part of a new package to boost SME procurement, that it will clamp down on poor payment practice throughout public procurement supply chains. Companies who pay late should not be rewarded with public sector contracts. We need a robust public procurement process that holds larger companies to account for their payment practices."
Julia Evans, Chief Executive at BSRIA, said; “After recent collapses of corporate companies in the industry, it is clear that vigorous and transparent payment measures are needed coupled with a public procurement process that holds such larger companies to account for their payment practices. Government has set a challenging aspiration that 33 per cent of procurement spend should be with small businesses by 2022 – and it is doing work to ‘break down barriers for smaller firms’. Indeed: SMEs are the pillar of the UK economy and play a crucial role at all levels in the construction industry. It goes without saying that companies who pay late should not be rewarded with public sector contracts."
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
Your chance to comment on the draft BS 851188 - flood resistance products and flood protection products.
Rebuilding could take 20 to 40 years.
RSHP’s high-rise residential towers win a tall buildings award for excellence.
BSRIA study reveals strong growth in 2018.
Dame Judith Hackitt confirmed as keynote speaker – one year on from the Hackitt Report.
Save £100 on tickets.
Modern slavery in the construction sector.
What to bear in mind when claiming damages in construction.
How do we achieve sustainable clean-water infrastructure for all?
What you should know when appointing an architect.
A brief history plus some new developments.
How computational fluid dynamics (CFD) helps building design.
The Hong Kong Harbour Area Treatment Scheme (HATS).