The construction industry in Scotland employs more than 170,000 people in around 31,000 businesses and is worth around £7 billion.
The public sector is a significant customer with an annual spend of more than £4 billion on building or civil engineering works.
We are taking forward a number of actions to improve the procurement of public sector construction projects.
The following topics are covered on this page:
- construction Procurement and COVID-19
- construction conference
- guidance on construction procurement
- construction clients knowledge hub
- Project Bank Accounts (PBAs)
- review of Scottish public sector procurement in construction
We have issued a number of construction policy notes which address our objectives for the sector during the COVID-19 outbreak.
Client guide to construction projects
Guidance to assist public sector clients to manage and procure construction projects is available online through the links below. It consists of three handbooks. These are:
- Handbook 1: project initiation and business case handbook
- Handbook 2: construction procurement handbook
- Handbook 3: construction phase handbook
Whilst the guidance is aimed primarily at public sector clients, it should also be of assistance to contractors and consultants alike in developing their understanding of how the public sector delivers construction projects.
Note that the Client Guide is being updated to take account of changes to Scottish procurement legislation resulting from the UK’s Transition Period on exiting the EU coming to an end on 31 December 2020. In the meantime, SPPN 11/2020 and SPPN 1/2019 should be referred to for further detail of the mainly technical changes that have been made.
HMG Construction Playbook and SG client guide to construction projects comparison
This paper compares aspects of the HMG Construction Playbook and the SG Client Guide to Construction Projects (May 2022) with a view to recognising areas of good practise and identifying further opportunities for improvement that may be adopted within construction procurement through the Client Guide to Construction Projects in Scotland.
Construction Capability Assessment Tool (CCAT)
We have developed a construction capability assessment tool (CCAT) to assist public contracting authorities in understanding their organisation’s capability and capacity to deliver construction projects. Email PropertyandConstruction@gov.scot if you would like a copy of the CCAT. Read more about the CCAT in the construction policy note (CPN1/2022).
These have two purposes one is to notify the public sector and their stakeholders of changes to our construction procurement policy but also to provide additional guidance to contracting authorities on various aspects of construction procurement.
Note that the Client Guide to Construction Projects and Construction Policy Notes are both mandated for use by all organisations that fall within the scope of the Scottish Public Finance Manual. Whilst they are not mandated for other organisations we would recommend their use as good practice.
The purpose of any construction project is to deliver a physical asset, which meets the requirements of the client, as specified in the contractual documentation.
The client’s role and their capability to successfully delivering quality outputs and outcomes from their projects is crucial to the success of the project.
The Client guide to construction projects includes advice throughout its three handbooks to assist public sector bodies deliver their projects on time, on budget and to the agreed standards. However, chapter 3 on quality of the Construction Phase Handbook provides an overview of the client’s role to successfully delivering quality outputs and outcomes in projects, particularly during the construction phase.
We are helping to ensure that contractors and sub-contractors working on building projects by Scottish Government bodies are paid promptly and fairly, through the use of Project Bank Accounts.
Project Bank Accounts (PBAs) are ring-fenced accounts which see members of the construction supply chain working on government projects - many of which are SMEs - get paid directly within contractually agreed dates.
This 2013 review looked into the procurement of public sector construction projects.
It made a series of recommendations designed to improve and strengthen client and supplier capability through a more efficient and effective procurement process. Read more about the implementation of these recommendations.
The Construction Procurement Policy Unit is hosting a series of webinars named, The Construction Procurement Sessions, for all those with an interest in public sector construction procurement in Scotland. These will cover a number of topical areas within the construction industry.
Public Procurement Strategy for Scotland
Supporting the development of a sustainable built environment is an objective of the Public Procurement Strategy for Scotland.
This includes the creation of a portfolio of frameworks to deliver public works which consider the economic impact and sustainability of the construction industry, and how this relates to inclusive growth and climate change targets.
The strategy sets out a cross-public sector ambition to ensure public works projects reflect and help deliver on relevant Scottish Government obligations on topics such as Fair work first and net zero
You can view construction procurement content prior to 2018 on the gov.scot archive.
If you have any questions about the above please contact the Construction Procurement Policy Unit:
Tel: 0131 244 8492