The LGA, in collaboration with NACF, hosted the Annual Construction Conference, a two-day virtual event.
The first day of the Annual Construction Conference, held on 11 February 2025, featured sessions on the Procurement Act 2023—its impact on construction and collaboration—along with discussions on how the wider public sector is preparing for the Act and the role of Building Information Modelling (BIM). The event was chaired by John Simons, Group Procurement Director at Scape.
Housing Mission, Challenges to the market and how the sector will respond
John Wallace, Director of Procurement, Clarion Housing Group
Clarion Housing Group, the country’s largest social housing provider, operates a major development arm, Latimer. To support procurement professionals, it established regional communities of practice and played a key role in forming the National Housing Procurement Association, facilitated by the Procurement Act.
Beyond housing, Clarion focuses on improving residents' lives through additional services and strong customer care. Its core values include openness, responsibility, respect, success, and evolution, with strategic priorities centred on people, customers, homes, and business operations. Addressing social challenges, Clarion reported that 18 per cent of residents experienced food insecurity, and 13 per cent relied on food banks, leading to 885 referrals to local authorities last year.
The sector faces challenges from policy changes, planning regulations, and rent caps. Rent levels remain below inflation, requiring financial adjustments. Housing safety improvements, particularly post-Grenfell measures and damp/mould issues, add financial strain. Changes in National Insurance and wages also impact operations, while regulatory oversight continues through the housing regulator and new legislation such as the Building Safety Act and Procurement Act.
The Procurement Act increases transparency in construction, contract management, and procurement while allowing flexibility for commercial approaches. Open framework agreements will support long-term supplier relationships and structured modifications.
Clarion prioritises financial sustainability, governance, and digital infrastructure to enhance operations. A recent transformation project improved efficiency and customer focus, yielding financial and service benefits. Leadership development across all levels aims to strengthen management, ensuring adaptability and resilience in the evolving housing sector.
Implementing and Embedding the Act in the Blue-Light Sector
Ellie Wilkinson, Commercial Governance and Compliance Manager at BlueLight Commercial
BlueLight Commercial discussed implementing the New Procurement Act in the blue-light sector, highlighting best practices, risks, and lessons learned. Established by the Home Office in 2020, the not-for-profit organisation supports police and fire services by reducing duplication, providing training, and driving savings through collaboration.
Beyond legal compliance, the focus is on cultural and behavioural change within commercial teams. Now with 70-80 members, BlueLight Commercial prepares the sector through model procurement processes, templates, and structured workstreams covering policy, communications, digital, social value, and training. A Government Commercial Function (GCF) gap analysis tool helped assess risks and priorities, while procurement templates and guidance documents streamlined processes.
To support implementation, 200 “super users” within police and fire services were designated to lead change, and a Procurement Act Knowledge Hub was created for collaboration. Training, webinars, and supplier engagement further ensured awareness and compliance.
Aligned with the Cabinet Office’s vision, BlueLight Commercial seeks to make procurement more agile, commercial, and transparent while fostering long-term sector-wide collaboration. Key lessons include the need for planning, clear priorities, resource management, and active engagement with stakeholders. Future efforts will expand resources, enhance procurement assurance, and measure the Act’s impact.
The Future of Building Information Modelling (BIM)
Building Information Modelling (BIM) is evolving but faces challenges such as underutilized data, complex tools, frequent remodelling, and inefficiencies. Dr. Ali M. Saad (Loughborough University) and Dr. Abdullahi B. Saka (University of Westminster) talked about how AI can transform BIM into a more data-driven and efficient system.
BIM is often misused as a CAD tool, with limited emphasis on its "Information" aspect. Improving communication between BIM tools, simplifying processes, and treating BIM as a continuous data optimisation loop can enhance its efficiency. Research shows BIM is underutilised in maintenance and planning, highlighting the need for broader applications.
AI integration is set to revolutionise BIM by increasing productivity (+21 per cent), reducing project timelines (-50 per cent), and improving cost estimation accuracy (+70 per cent). Key applications include:
- Automated Compliance Checking – AI streamlines evaluations, reducing errors and delays in approvals.
- Waste Optimisation – AI can cut construction waste by 96.73 per cent and lower disposal costs.
- Predictive Scheduling – AI enhances data retrieval and contract management, saving time.
- Sustainable Material Selection – AI aids in selecting eco-friendly materials, reducing environmental impact and costs.
The Future of BIM
BIM will advance through AI-driven digital twins, real-time data integration, and predictive analytics. AI will enhance, not replace, human roles, driving efficiency, sustainability, and safer construction practices.
Procurement Act, implications for construction and collaboration
Peter Ware, Partner, Browne Jacobson
The Procurement Act simplifies procurement processes, reducing multiple procedures into more flexible ones. Authorities can design processes as needed while ensuring greater transparency, driven by private sector demands for more information. There are now 14 procurement notices, increasing scrutiny and the need for clear decision-making.
Contract management gains importance, requiring more resources, especially in construction. Authorities must focus on key performance indicators (KPIs), supplier conduct, and implied terms.
The Act introduces two main competitive procedures: an open procedure allowing unrestricted tenders and a flexible competitive procedure where authorities choose the most appropriate method. Proportionality is key in selecting a procedure, and certain criteria must be considered, particularly in dynamic market procurements.
New procurement objectives emphasise value for money, public benefit, transparency, and integrity. Authorities must treat suppliers fairly, justifying different treatment when necessary. The Act aims to reduce barriers for small and medium enterprises (SMEs), encouraging their participation.
Competitive procedures must not be overly complex. Authorities should balance process design with procurement needs, considering transparency and fairness. Award criteria can be refined during multi-stage tenders, but clear guidelines must be set from the start.
The Act introduces open frameworks, allowing suppliers to join periodically over eight years, differing from closed frameworks. These frameworks must maintain consistency in terms and criteria, which may lead to suppliers reassessed when reapplying depending on the structure and number of suppliers involved.
Supplier exclusion is refined into "excluded" (mandatory grounds) and "excludable" (discretionary grounds), with authorities assessing the likelihood of repeat offenses. A national debarment list prevents poorly performing suppliers from securing contracts, with a formal investigation and appeals process.
The Act simplifies feedback to bidders, focusing on individual performance rather than comparisons. Automatic contract suspension now only applies if a claim is made during the standstill period, prompting quicker legal challenges from unsuccessful bidders.
Ethical PPE
Katy Robinson, Campaign Manager for Inclusive PPE, East Riding of Yorkshire Council
A campaign for better-fitting personal protective equipment (PPE) in construction highlights the widespread issue of ill-fitting equipment, particularly for women. The Chartered Institute of Building’s (CIOB) "PPE That Fits" campaign inspired further research, revealing that 60 per cent of employers fail to provide gender-specific PPE, despite its availability.
Key Issues
- Health & Safety Risks: Ill-fitting PPE can cause injuries, discomfort, and workplace exclusion, contradicting its protective purpose.
- Gender Data Bias: PPE standards are based on outdated anthropometric data, primarily from male measurements, affecting both men and women.
- Lack of Demand & Awareness: Employers often default to unisex PPE, unaware that women-specific options exist. This limits market availability and affordability.
- Regulatory Gaps: PPE regulations do not legally require consideration of gender and protected characteristics, making enforcement difficult.
Campaign Actions & Progress
- Awareness & Advocacy: Partnering with industry bodies, conducting webinars, and providing a platform for workers' experiences.
- British Standards Reform: Engaging with standards organisations to update PPE sizing and requirements. The development of the new British Standard, BS 30417, to guide the provision and procurement of inclusive PPE.
- Resource Development: Collaborating with CIOB to create a directory of PPE tested by diverse users.
- Research & Data Improvement: Working with universities to modernise body measurement data for better PPE design.
Call to Action
Employers should assess their PPE procurement policies, ensure diverse sizing, and establish reporting mechanisms for ill-fitting equipment. Workers can push for change by raising concerns with suppliers, safety teams, and policymakers to advocate for updated PPE regulations.
Q & A
Q. How does Clarion Housing Group improve the life chances for their customers?
A. Life chances for customers are improved through various services, including support traditionally provided by the NHS. A strong focus on social value drives these efforts, with Clarion Futures leading initiatives to enhance residents' well-being and strengthen communities. This work is ongoing and continually expanding.
Q. How do you see the role of AI affecting Clarion Housing Group in the next five years?
A. Clarion Housing Group is cautiously monitoring AI developments, having established policies but without a definitive stance on its long-term impact. Their approach will evolve over time, balancing opportunities AI may offer with necessary safeguards, similar to many other organisations.
Q. The move to net zero is a challenge. With regard to retrofitting social housing, how do you think you're you'll approach that topic?
A. We are already actively addressing this. Last year, we secured significant government funding, which is now being used for regeneration projects. Our Director of Sustainability has set clear targets for both new construction and the maintenance of existing properties, as well as for Clarion’s overall operations. While achieving these goals is challenging due to various competing factors, sustainability remains a key strategic priority, and we are committed to making progress.
Q. Do you see an opportunity for broader collaboration in the construction sector by working with other framework providers to develop and advance these models?
A. We've collaborated with Tech UK on digital initiatives and worked with police, fire services, and DDaT on category-specific approaches. There's a huge opportunity to apply a similar model in construction. However, at Blue Light, we don’t currently have a category for the built environment.
Q. Could you expand on what you're doing in terms of social value social economic and environmental elements within the tender process for the BlueLight sector?
A. We have a social value lead and a toolkit to identify opportunities and risks in procurement, shaping supplier questions, assessments, and KPIs. We also require management reports to track progress. While we already follow PCR 2015, the key change will be aligning with the National Procurement Policy Statement to ensure our local approach supports national procurement goals.
Q. What KPIs are you developing to measure the impact of the new act?
A. That comes after implementation. It will be interesting to assess which processes are used, whether they boost framework usage or competition, and how they impact resources.
Q. Would you agree that the combination of BIM and AI in the construction sector allows procurement professionals to focus on the key elements of a project?
A. AI won’t replace jobs but will enhance them. We need an open mindset to embrace AI within a structured framework, considering risks like data privacy. AI can significantly speed up tasks, such as building code compliance, reducing review time from weeks to hours. It’s a tool to support professionals, not replace them.
Q. Do you see a risk of over-reliance on AI, potentially leading to oversights or errors?
A. Like any innovation, there’s a risk of over-reliance, which is why a clear framework is essential. For example, as a lecturer, it's easy to spot when students use generative AI. The focus shouldn't be on banning AI but on establishing guidelines for its proper use. Without this, AI-generated bids and evaluations could lead to a "garbage in, garbage out" scenario.
Q. What risks do construction professionals and building users face when using AI for desk-based compliance checks, and how can we ensure quality in the final physical build?
A. One main risk that comes to mind is the issue of confidential information, especially to specific projects. But I think this is a digital risk rather than an AI risk.
Q. Do you think that we'll see perhaps more joint ventures and SMEs grouping together?
A. When putting bids together, the impact on aggregation must be considered. Pre-market engagement is crucial to encouraging market innovation, especially in SME engagement. Understanding SME concerns about public procurement—whether fair or not—can help refine processes. If a process can be simpler or smaller, it should be. While consortiums are a common way for SMEs to participate, the challenge lies in the resources needed to form them.
Q. Do you think the new Procurement Act is going to help us or help the public sector in putting bids together that can promote and encourage sustainable bidding?
A. It’s helpful but not revolutionary. The act aims to give contracting authorities more discretion in procurement criteria, but cost remains crucial. While flexibility is increasing, careful consideration is still needed to meet public sector obligations.
Q. You say you're working closely with industry bodies to try and facilitate change regarding PPE. Have you got any momentum, any progress with certain bodies?
A. Our main achievement in the construction industry has been working with the Considerate Constructors Scheme, an on-site accreditation programme that encourages best practice, to mandate the requirement for women’s PPE across all of their registered activities. The awareness campaign, especially last year, gained significant traction, with a large number of professional body and related associations supporting it. Through webinars, seminars and other initiatives, we successfully spread the message, and it has sparked more open discussions among women in the industry.
Q. How do you think the public sector can help get involved in that campaign? Do you have any further campaign days that you want to do, for example?
A. The main way that people can get involved is action within their own organisations. For example, at East Riding of Yorkshire Council, I initially approached our construction framework YORhub to explore how we could encourage this initiative with their contractors. I presented similar talks at their framework contractor days and meetings, urging support for the work we were doing, not only for us as clients but also for their staff. The response has been positive.