As quantity surveyors, we’ve been closely monitoring the rollout of the Procurement Act 2023. With the legislation now fully in force (as of 24 February 2025), it’s already reshaping the procurement landscape in the UK and it’s something quantity surveyors, contractors, and our clients need to understand.
Here’s our breakdown of what the new Procurement Act means for the construction industry, particularly through the lens of quantity surveying.
- KPIs Are Now Mandatory on Major Contracts
Under Section 52 of the new act, public sector buyers are required to define and publish a minimum of three Key Performance Indicators (KPIs) for all contracts valued over £5 million.
For quantity surveyors, this means we’re now directly involved in advising on appropriate KPIs from the outset, ensuring they are specific, measurable, and genuinely reflective of contract performance. These indicators, such as quality benchmarks, safety targets or programme milestones, must be assessed at least annually and published upon contract close-out.
This shift strengthens the role of quantity surveyors as professionals as performance managers and not just cost consultants.
- Performance Transparency and Public Accountability
The Act significantly raises the bar on contract performance transparency. Contracting authorities are now obliged to report instances of poor performance or non-compliance within 30 days, along with annual KPI reporting.
This increased scrutiny makes clear, evidence-backed reporting essential. Our role as quantity surveyors includes ensuring the appropriate records, valuations, and assessments are in place to support both clients and contractors in maintaining compliance and demonstrating delivery against key outcomes.
- More Flexibility in Procurement Procedures
The introduction of the new “competitive flexible” procedure gives public buyers greater freedom to tailor procurement processes to suit project needs.
This procedural shift encourages early engagement and opens up the potential for more collaborative procurement models. For quantity surveyors, it presents opportunities to support clients earlier in the process, particularly in developing commercial strategies and defining evaluation criteria that go beyond lowest price.
- Emphasis on Social Value
The Act gives added weight to social value considerations, reinforcing a trend that’s been gaining ground since the Social Value Model was introduced in 2021.
We’re increasingly supporting clients in quantifying and embedding social value into procurement documents and project outcomes. Whether that’s through local employment, sustainability measures, or community engagement, the ability to measure these outcomes in financial and qualitative terms is becoming a core skill.
- Prompt Payment Obligations
Under the new rules, 30-day payment terms are now mandatory for all public contracts, extending through the supply chain. This is a welcome move for contractors and subcontractors alike, helping improve cash flow and reduce payment disputes.
From our perspective, it highlights the importance of robust contract administration and payment tracking systems to ensure compliance and protect commercial interests.
- Central Debarment List
The Act introduces a central debarment register, enabling authorities to exclude suppliers who present unacceptable risk due to poor performance, legal issues, or ethical concerns.
This is a significant development for due diligence. We now factor the debarment list into our procurement support services, helping clients navigate contractor selection with greater confidence and reduced risk exposure.
How Quantity Surveyors Can Add Value Under the New Regime
The Procurement Act 2023 reinforces the strategic role of a quantity surveyor – not just in cost management, but as a partner in:
- Performance monitoring and reporting
- KPI development and evaluation
- Social value planning and tracking
- Contract compliance and risk mitigation
As the construction industry adapts to this new regulatory environment, quantity surveyors are well-positioned to guide clients through the change, improve transparency, and drive better value in public procurement.
If you’d like to discuss how the Procurement Act 2023 may impact your upcoming projects or need support aligning with the new requirements, our team is here to help. Get in touch with us today.