Public sector procurement

Community benefits in procurement

Community benefit requirements are defined in the Procurement Reform (Scotland) Act 2014  as a contractual requirement imposed by a contracting authority:

a) relating to:

• training and recruitment
• availability of sub-contracting opportunities

b) or which is otherwise intended to improve the economic, social or  environmental wellbeing of the authority’s area in a way additional to the main purpose of the contract in which the requirement is included

All public sector contracting authorities are required to consider including community benefit requirements for all regulated procurements where the estimated value of the contract is equal to or greater than £4 million.  Their use does not need to be limited to procurements of this value as research has shown that community benefits can be achieved in procurements under the £4 million threshold.

Community benefits have contributed to a range of national and local outcomes relating to employability, skills and tackling inequalities by focusing on under-represented groups. The Act aims to achieve the maximum use of these requirements in public procurement.

Use of community benefit requirements may also demonstrate compliance with the sustainable procurement duty which applies to all regulated procurements.

All public sector contracting authorities must set out in their procurement strategies their general policy on the use of community benefit requirements and review compliance with that policy in their annual procurement report.

Support and guidance

We have produced the following guidance on the use of community benefit requirements:

• statutory guidance on the use of community benefit requirements in procurement (chapter 4)
• sustainable procurement duty tools and supporting guidance
• community benefits in Public Procurement - Research on impact and value – 2015
• community benefits in public procurement – policy guidance note (2008)
• community benefits in public procurement – report (2008)
• case study on the use of community benefit requirements in a public contract

Construction Skills have developed guidance, including a range of indices, and provide free of charge support to help contracting authorities build community benefit requirements into construction contracts.

Anyone planning to use the guidance is encouraged to contact the Construction Industry Training Board for appropriate support.

Our Skills Force information for employers on programmes and financial assistance available for recruitment and training

Related information

• sustainable procurement duty: more information
• statutory guidance on procurement strategies and annual procurement reports (chapter 2)