What to expect from the Procurement Act: Key takeaways from our virtual event

Experts from Procurement for Housing and Clarion joined us as we discussed the new procurement reforms and how social housing providers should prepare for them.

The Procurement Act 2023 is finally upon us, which means it won’t be long till the reforms come into effect. To help CIH members prepare, we held a virtual event in which we unpacked all the detail, while exploring both the risks and opportunities for social landlords. 

Chaired by the CIH’s director of policy and external affairs, James Prestwich, this member-exclusive webinar hosted experts from Procurement for Housing and Clarion, all of whom updated attendees on the latest procurement developments and shared insight into what’s coming down the line. 

Here are the essential takeaways from the event. 

Take advantage of opportunities 

Guy Stapleford, head of consultancy at Procurement for Housing, said the new procurement changes present a “golden opportunity” to drive more value. 

One of these opportunities is to shift procurement from a purely transactional process to one that provides genuine commercial value. 

This opportunity has arisen in part due to the inclusion of two core processes: the single-stage process, which is akin to the current system; and the Competitive Flexible Procedure, which promotes creativity, engagement and negotiation. 

“These two new processes are going to be really, really good for us,” Guy said, adding that the reduced focus on price should drive better outcomes overall. 

Guy also said the new changes present a particular opportunity to SMEs and local suppliers – who may have previously been overlooked in the tendering process – as buyers must actively consider them in the process, alongside any barriers they might face and how these can be overcome. 

To realise the opportunities presented by the new regime, senior leaders will need to “meet the challenge” and engage with and support their procurement teams. 

If they’ve not already done so, organisations should build their transition plan, which ideally includes: 

• Reviewing the contracts register 
• Reviewing the procurement pipeline 
• Reviewing policy and procedure 
• Reviewing systems 
• Undertaking a resource and skills assessment of commercial teams 
• Preparing for transparency (systems, processes, and resources). 

Be aware of the risks 

While macroeconomic headwinds continue to heighten the risk for the sector in areas such as recruitment and skills retention, there is also risk inherent in the new procurement regime’s requirement for increased transparency.

Guy highlighted the “major shift” in the amount of contract information made publicly available, particularly as, under the new legislation, buyers are required to tell the market when a contract finishes. 

“With these notices, suppliers, the market, your customers... they are going to see much, much more,” Guy said, adding: “[There’s a] major shift in the amount of information we're going to make publicly available on contracts – it's going to be sensitive for suppliers in the early days, and your senior leaders with your commercial teams are going to need to consider how you manage that.” 

Offering a word of advice, he said: “Now more than ever, you will be wanting to seek assurance that you’ve got robust efficient compliance processes.” 

Highlighting the increased resource requirement the new regime demands, John Wallace, director of procurement at Clarion – and the Cabinet Office’s designated single point of contact for the rollout of the new procurement regime for housing associations – acknowledged procurement will have to compete with areas such as damp and mould, decarbonisation, and building safety. 

“I appreciate the Procurement Act, in the overall pecking order of things that you're worrying about, comes well down the list,” he said.

Guy Stapleford (L), Jane Brighouse (R)

John also covered the new Procurement Review Unit, whose core purpose will be to monitor potential issues around compliance and implementation and to intervene where necessary. "It has teeth," he said, warning there will be the risk of fines for those who are not compliant. 

While "we have no idea what the fines will be or what the remedies might be”, John urged attendees to consider the reputational risk of non-compliance with the new regime. 

“The last thing we need as a sector is any more reputational things hitting the press,” he said. 

Engage with residents 

As with most sector changes, landlords should engage with tenants to ensure they are informed and able to share their input. 

Clarion, for example, has set up a resident involvement procurement steering group, which consists of procurement professionals, the resident involvement team, and a number of residents. 

Guy Stapleford  |  head of consultancy, Procurement for Housing

How do you integrate that customer voice, that customer journey into the procurement process? That's key now going forward

“I'm taking a view that it's not just about resident involvement and things that directly affect them...I'd like them involved in anything that that we're running, so that they can see how we’re run and be far more transparent.” 

However, acknowledging that “our residents are busy people”, John added that to try and get them to commit the time to follow a procurement is “a challenge”.

Guy added: “The trick now for people like John and his team is to take resident involvement and the customer voice beyond a simple tick-box...how do you integrate that customer voice, that customer journey into the procurement process? 

“I think that's key now going forward.”

• Watch the recording 
• Our next member-exclusive virtual event, ‘Building better boards – getting ahead of the curve’, will take place on 5 December

Main image: H_Ko/Shutterstock