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From the Show Floor at UKREiiF: Why Procurement Reform is the Missing Piece in the Infrastructure Puzzle.
I was at UKREiiF last week, meeting people across the sector on what they need to make procurement work for their projects.
What I often hear is that the ambition to regenerate our towns and cities is real, funding is often available, and what sometimes prevents projects from succeeding is the procurement process beneath them. Speaking to attendees, including representatives from councils, political leaders and procurement specialists, I heard the same issues come up time and again.
Published by: Peter Alekkou, Construction Sourcing Specialist
The first is speed. In my experience, traditional construction procurement projects could run for months before a decision was made. By then, funding windows could have changed, the political context could have shifted, and communities were still waiting for projects. However, this can be solved. Through my work at Constellia, we have run processes in as little as a few weeks because the compliance work is done, suppliers are pre-approved, and clients can move straight to delivery rather than spending the best part of a year getting there.
The second issue is financial. The significant change in numbers during a project is one of the most damaging problems in public-sector construction. I see it repeatedly. Constellia Works addresses this directly, building Guaranteed Maximum Price and Guaranteed Minimum Base mechanisms into our frameworks from day one. Clients get real cost certainty before they commit significant spend, so the price is locked in before the point of no return.
Where we also differ from traditional routes is that we are focused on Tied 2 suppliers. Large Tier 1 suppliers win the contract and subcontract to regional firms anyway. Constellia’s managed marketplace of over 4,000 suppliers, most of which are British SMEs, cuts out that middle step, giving public sector clients direct access to local Tier 2 businesses who are already approved and ready to deliver. Unlike a national contractor parachuted in from elsewhere, these businesses have real pride in their communities and want to be part of making a difference. When your reputation is built within a 30-mile radius, doing a good job isn’t optional.
They want their region to flourish because they are part of that community. Procurement that keeps money circulating locally, builds the contractor base future projects depend on, and delivers outcomes communities can see.
I’m looking forward to continuing those conversations with public sector clients and suppliers who share that ambition. If you would like to discuss how Constellia can support your organisation, get in touch.
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