Collaborative and outcome-based procurement seem to be the buzz words of the moment, but numbers, research and real-life practices prove this is more than just talk. There’s a notable shift taking place.
In this article, we explore what’s behind the change, how it’s making a difference and why contracting authorities should be getting on board.
A measurable change in procurement
There’s a sense within the sector that we’re approaching a new era of procurement. This isn’t just a hunch or a feeling; data tells us that the wheels of change are already in motion. Paul Beeston, Head of Industry and Service Insight, at Rider Levett Bucknall (RLB), shares that figures from RLB’s recent Construction Procurement Trends Report reveal a measurable shift in procurement behaviours across both public and private sectors.
“Our latest data shows 40% of contractors are engaging in more collaborative practices, and 61% of tenders now define value selection criteria – marking a move away from lowest-price wins.
We’re also seeing contractors involved in verifying sustainability targets in 36% of contracts, and 35% of respondents expect better client outcomes as a result of the Procurement Act.”
Paul Beeston, Head of Industry and Service Insight
Collaborative procurement in action
RLB’s report also sheds light on what collaborative procurement looks like in practice, for example, more tenders are being taken to market by a two-stage route than in previous years – rivalling the number of single-stage tenders. This indicates that contracting authorities are acknowledging the benefits of a single contractor delivering a project from start to finish, such as continuity, transparency around risks and accountability for the delivery of a successful project.
As well as a preference for two-stage construction tenders, Westworks is seeing more contracting authorities willing to share the risk weighting of projects – welcome news for many suppliers. Karina Gent, Head of Operations at Westworks, explains this is partly down to the economic landscape:
“Increasing material and labour costs have led to some schemes becoming unviable during the planning stage and others to be paused mid-delivery, where contractors have succumbed to financial difficulties.
This can lead to significant losses for the contracting authority, as well as large unplanned costs to complete half-finished schemes. As a result, more contracting authorities are willing to shoulder some of the risk to prevent this type of scenario.”
Karina Gent, Head of Operations, Westworks
Cause and effect
So, what’s behind this wide-scale movement towards collaborative, outcome-focused procurement? Paul tells us that it’s caused by the sector’s “broader realignment driven by market volatility, legislative reform, and the growing recognition that traditional models are no longer sustainable.”
Increased trust in supplier expertise is also enabling stronger partnerships on the ground, explains Karina:
“We’re seeing a real appetite among contracting authorities to work more collaboratively with contractors. There is growing recognition that contractors are often better acquainted with the latest developments in construction innovation, particularly in relation to energy efficiency, than the contracting authorities. Working in partnership means that contracting authorities are able to build better quality homes for their tenants that will cost them less to maintain in the future.”
Paul agrees that a more collaborative procurement style offers many benefits for the sector:
“[It] allows industry to shift away from transactional contracting and instead focus on delivering real value. It fosters stronger partnerships, aligns suppliers with strategic goals, and encourages innovation.”
How Westworks is supporting the shift
At Westworks, we’re committed to securing the best outcomes for everyone in the procurement process and believe public procurement should be both collaborative and people-focused.
We deliver on this by:
- Advocating for the early identification of project risks
- Being open and transparent and encouraging all parties to do the same
- Supporting conversations on cost vs quality weighting and social value commitments
- Providing help and guidance beyond contract award.
By working closely with both suppliers and contracting authorities, we’re helping to turn the principles of collaborative procurement into everyday practice.
Are you leading or lagging?
Whether you’re a supplier, a procurement officer, or part of a contracting authority, embracing collaborative and outcome-based procurement can drive better results for us all, and most importantly, for the communities we serve.
Now is the time to take action. Reassess your procurement strategies. Seek out organisations that will work in partnership with you. Prioritise long-term value over short-term savings. The shift is happening—are you leading it or lagging behind?
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