Introduction

The Procurement Act 2023 fundamentally reshapes how public sector organisations purchase goods and services in the UK. For retrofit suppliers working on PAS2035 projects, particularly those involving public funding or government-backed schemes, understanding these new rules is critical. This guide explains the key changes and practical implications for your business.

What Changed and When

The Procurement Act 2023 replaces the Public Contracts Regulations 2015. The new regime came into force on 1 February 2024, creating a more flexible framework whilst maintaining transparency and fairness in public spending.

Key changes include:

• Simplified procedures with greater flexibility in how contracts are run
• Reduced bureaucracy and faster procurement timelines
• New transparency requirements and reporting obligations
• Strengthened focus on social value and environmental sustainability
• Enhanced requirements around modern slavery and supply chain due diligence

Core Principles Affecting Retrofit Suppliers

Transparency and Non-Discrimination

Public bodies must treat all suppliers equally and fairly. This means:

• Clear, accessible tender documentation without hidden requirements
• Equal information provided to all bidders
• Published evaluation criteria that genuinely reflect project needs
• Timely feedback following procurement decisions

For retrofit work, this ensures that tender specifications focus on actual technical requirements, not unnecessary barriers that favour particular suppliers.

Value for Money

Public bodies must seek value for money, not necessarily the lowest price. This is particularly relevant for retrofit, where:

• Quality of workmanship and long-term performance matter
• Environmental benefits count as legitimate evaluation factors
• Whole-life costs may be considered, not just capital expenditure
• Supply chain resilience and local delivery capacity are valued

Proportionality

Procurement processes must be proportionate to contract value and complexity. This creates opportunities for smaller retrofit suppliers:

• Low-value contracts can use simplified procedures with minimal formality
• Documentation requirements scale with contract size
• Support for small and medium-sized enterprises is encouraged
• Microenterprises have specific protections

Compliance Requirements for Bidders

Exclusion Grounds

You must declare whether your organisation meets exclusion criteria. Public bodies must exclude suppliers in certain circumstances:

• Conviction for serious crimes (fraud, bribery, money laundering, human trafficking)
• Non-payment of taxes or social contributions
• Breach of environmental, labour, or social law
• Insolvency or similar financial difficulties
• Professional misconduct or serious misrepresentation

Discretionary exclusions also exist for breaches of modern slavery legislation, bankruptcy, or misleading professional qualifications.

Selection Criteria

You'll typically need to demonstrate:

• Technical and professional ability (relevant qualifications, experience, references)
• Economic and financial standing (accounts, credit references)
• Health and safety standards (relevant policies and records)
• Environmental management (increasingly important for retrofit work)

Modern Slavery and Due Diligence

The Act requires transparency around supply chains. Retrofit suppliers should prepare:

• Modern slavery statements or equivalent declarations
• Documentation of supply chain due diligence processes
• Evidence of compliance with relevant legislation
• Details of any subcontractors used

Practical Steps for Your Organisation

Getting Procurement-Ready

1. Audit your compliance status: Check against exclusion grounds; obtain accounts and references; document qualifications and insurance
2. Build your tender file: Create templates for common declarations, case studies of completed retrofit projects, and references from previous clients
3. Understand your supply chain: Map your subcontractors and material suppliers; confirm their compliance credentials
4. Develop social value narrative: Articulate how your retrofit services create local employment, energy savings, health benefits, or environmental improvements
5. Register on Find a Tender: This is the primary portal for UK public sector procurement notices

Tender Response Strategy

• Read specifications carefully and ask for clarification if requirements seem unclear or onerous
• Respond directly to stated evaluation criteria rather than providing generic company information
• Quantify claims with evidence—actual energy performance data, certifications, reference contact details
• Explain how you'll manage health, safety, and environmental risks specific to the retrofit project
• Demonstrate understanding of PAS2035 and relevant retrofit standards

Key Differences from Previous Rules

The new Act removes some administrative burdens whilst strengthening others:

• Dynamic Purchasing Systems and Framework Agreements are now more flexible
• Standstill periods (mandatory delays before contract signature) still apply but with clearer timescales
• There's no longer a requirement for European publication in most cases
• Social value and environmental considerations have stronger emphasis
• Transparency reporting is simplified but mandatory for contracts above £500,000

Looking Ahead

The Procurement Act 2023 creates a more proportionate system that should benefit efficient, compliant retrofit suppliers. Understanding these rules positions your business to engage confidently with public sector retrofit opportunities, particularly given government investment in building decarbonisation and retrofit schemes.

Stay updated through official government guidance and industry bodies, and consider whether formal procurement training would benefit your team.