How the Procurement Act 2023 Is Relevant to the Construction Industry and How Social Value Is Measured

The Procurement Act 2023 came into force on 24^th February 2025 providing the framework for public body procurement. It is supplemented by the Procurement Regulations 2024 which set out detailed guidelines. In addition, since 1^st October 2025 the Social Value Model and the Procurement Policy Note 002 (PPN 002) have helped implement the new National Procurement Policy Statement (NPPS).

As a result, the method of bidding for high value public sector work changed and in addition it is a requirement for the construction industry to add at least 10% social value on awarded contracts. Requirements for the bidding process and how social value is added will be outlined.  

The Procurement Act 2023 is intended to streamline public procurement on contracts meeting the threshold amounts outlined in PPN 023: 2026 Threshold Amounts with the current lower limit of £135,018 in England. The Act mandates the use of the Find a Tender service (FTS), launched on 23^rd February 2025, to facilitate easy and transparent searching and bidding for contracts.

Outline of the FTS

• All UK contracting authorities termed “in-scope organisations” must register on the platform to publish procurement notices. Once registered it is possible to use a third party (eSender)
• Suppliers/contractors must also register with the FTS to search for opportunities, bid and obtain information. The contractor chooses who to share their details with  
• Suppliers must provide requested information and submit their bid in a specified format.
• Light touch contracts regarding for example health and education may be subject to more flexible rules.

Benefits of FTS

• Easy to register
• Time saving as suppliers’ business details are retained for future bids
• Facilitates simple sharing and management of information
• Opportunities are easy to find and at no cost
• Alerts can be set
• Whole procurement lifecycle is covered with linked procurement identifier using Open Contracting Data Standard (OCDS)
• Transparent
• Consistent

In addition, at the preparation and planning stage, The Public Services (Social Value) Act 2012 requires in-scope organisations in England and Wales to consider:

• how the project can improve localised economic, social and environmental wellbeing (i.e. adding social value) and
• how that improvement can be secured

Since 1^st October 2025 it has been mandatory for in-scope construction projects to add at least 10% weighting for social value. The most advantageous tender is assessed on price and social value, being the added positive, usually non-financial, impacts the project can have.

When tendering, suppliers must answer social value questions set by the in-scope organisation based on the UK government’s five missions and eight social value outcomes paraphrased below:

The UK Government’s Five Missions

Mission: Kickstart economic growth

• Outcome 1: Fair work by offering fair pay and good working conditions .
• Outcome 2: Skills for growth and filling skills gaps.
• Outcome 3: Resilient, innovative and flexible supply chains.

Mission: Make Britain a clean energy superpower 

• Outcome 4: Sustainable procurement practices including reducing carbon emissions and waste; promoting green technologies .

Mission: Take back our streets 

• Outcome 5: Help reduce crime through community cohesion.

Mission: Break down barriers to opportunity by reforming our childcare and education systems

• Outcome 6: Employ and train those facing barriers to employment .
• Outcome 7: Reduce barriers for under-represented groups.

Mission: Build an NHS fit for the future that is there when people need it

• Outcome 8: Increase productivity in the value chain through physical and mental wellbeing.

Successful bidders will need a structured approach to understand each specific social value expectation and develop solutions which best achieve the required outcomes to maximise public benefit, a core requirement of the Procurement Act. As several frameworks are available to quantify the added social value, there is no streamlined approach within the construction sector.

Each organisation needs to consider their approach, and which outcomes are important to them. A robust reporting framework to set targets and gather supporting data should then be implemented. For example, companies may link their CSR and ESG goals to the United Nations Sustainable Development Goals. However, to actually quantify the added social value, a portal such as The National TOM System™ (Themes, Outcomes, Measures) can be used. This system provides financial proxy values to measure outcomes so that a monetary value can be placed on social value.

The government's social value outcomes reward organisations that can demonstrate sustainable procurement practices, carbon reduction capability, and investment in workforce skills development.

ISEP-accredited training equips your team with the knowledge to meet these requirements, from entry-level awareness through to practitioner-level qualifications. The right training builds the capability to deliver on your commitments once you win.