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How a small firm wins council work — the Procurement Act 2023, in plain English

Public bodies in the UK spend around £300bn a year, and since February 2025 the rules were rewritten to make it easier for small firms to get a share. This is what changed, where to look, and how to bid without losing a week of evenings.

1. Where the tenders are now

Most new notices — councils, housing associations, NHS trusts, schools, universities, utilities — go on the central digital platform, Find a Tender. The older site, Contracts Finder, still carries some below-threshold and legacy notices. Nobody reads both every day, which is why we built the Projects list: both feeds, filtered to building and building-services packages, tagged by trade and region, refreshed every morning. Start from your trade: electrical, M&E & heating, fit-out, roofing, civils, repairs & maintenance.

2. Register once, properly

Supplier registration on Find a Tender is free. Have ready: company number, VAT number, turnover for the last two years, employer's and public liability insurance (most buyers ask for £5m / £10m), accreditations (NICEIC, Gas Safe, CHAS / SafeContractor / Constructionline), and two or three references with contact details. Buyers pull these from the register, so you stop re-typing them in every bid.

The one thing that disqualifies small firms most often: insurance limits. Check the notice's minimum before you spend an evening on the bid; a £10m public liability requirement is common on highways, rail and NHS work.

3. The words on the notice

4. What you can ask for as an SME

The Act makes buyers consider barriers to small firms and justify them. In practice that means you can reasonably ask for: payment within 30 days (it's in the Act and must flow down the supply chain, including to you as a subcontractor), lots sized for a firm your size, proportionate turnover requirements (the long-standing benchmark is no more than twice the contract value), and clarification questions answered in writing for everyone. Use the questions period — buyers must publish answers to all bidders, and a good question often reveals who the incumbent is and how they'll score.

5. Pricing without losing money

  1. Measure, don't guess. Get a BoQ or build one from the drawings: units × rate per item. Lump sums hide the mistakes until month three.
  2. Price labour from real day rates plus the on-costs people forget: holiday pay (12.07% on PAYE), employer's NI, CIS admin, travel, parking, PPE, downtime between sites.
  3. Prelims as a separate line — supervision, welfare, skips, plant, RAMS, inductions, insurances. On public work prelims are 8–15%, not 3%.
  4. Retention and valuations. Check the payment terms: monthly valuations, 3–5% retention, defects period. Make sure your cash can carry 60–90 days.
  5. Quality answers win ties. Method statements, social value (local hires, apprentices), and a clean H&S record often score 40% of the marks. Reuse good answers — keep them in one place.
A rule of thumb: if the package is under £250k and in your trade and region, and you can meet the insurance and the dates, bid. Your hit rate on your first five bids will be poor; by the tenth you'll know the buyers and the scorers, and that's when it pays.

6. After you win

Public work is paperwork-heavy: RAMS before you start, inductions signed, daily records, test certificates, O&M files and valuations every month. That's what Graftum was built for — site records from the phone, timesheets and CIS pay from the same data, valuations that match the contract lines, and a handover pack at the end. It's free for 90 days, and the Projects list stays free regardless.

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Thresholds and rules are as published for England, Wales and Northern Ireland at 30 October 2026; Scotland runs its own regime via Public Contracts Scotland. This is general guidance, not legal advice.