Contractors bidding for major public sector work will face a new test to prove they can boost British jobs and skills under plans to overhaul infrastructure procurement.
The Cabinet Office has launched a consultation that will see contractors bidding for road, rail, school and hospital jobs ranked not just on price and quality – but on how much they contribute to local communities.
Under the proposals, companies will need to clearly show how they will offer apprenticeships, training, and employment opportunities for disadvantaged groups as part of their bids.
Crucially, these pledges will be tracked to ensure promises are kept.
Cabinet Office minister Pat McFadden said: “Whether it’s building roads, railways or schools, we want to open up opportunities on major infrastructure projects for firms that boost British jobs and skills.”
The changes form part of the government’s wider Plan for Change and its upcoming Infrastructure and Industrial Strategies, which will see billions pumped into capital projects across the UK.
McFadden added: “The new rules will deliver on our Plan for Change by rewarding companies that put money in working people’s pockets as we invest in the country’s future.”
What it means in practice
When assessing how a company could deliver a road building project, a public body would need to consider how the firm would offer benefits such as:
- Apprenticeships
- T-level industry placements
- Opportunities for care leavers
- Support to help people get into work and stay in work locally
The Cabinet Office claims that in the past, companies have made pledges when bidding for contracts but don’t always follow through. Under these plans, government will ensure companies deliver on promises around skills, jobs and local opportunities.
The shake-up builds on a February announcement setting out expectations for public bodies to deliver wider social value when awarding the UK’s £385bn annual public sector procurement spend. This new move would make that requirement mandatory.
A simplified framework for scoring social value will also be introduced, making it easier for clients to assess and monitor employment, training and community outcomes from projects.
Contractors who fail to deliver on their pledges will face tighter scrutiny and risk losing out on future deals.
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