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The Procurement Act 2023: What it means for RetrofitWorks and its members

The Procurement Act 2023, which received Royal Assent on 26 October 2023, introduces a significant shift in public-sector procurement. Coming into effect on 24 February 2025, this Act is designed to simplify, modernise and create a more competitive and transparent procurement system.

For RetrofitWorks and its members, this presents new opportunities to secure public-sector retrofit contracts while also demanding higher compliance standards. By understanding these reforms, RetrofitWorks can proactively position itself to benefit from the Act’s pro-SME and sustainability-focused approach.

Key features of the Procurement Act 2023

1. A more flexible and streamlined procurement process

The Act replaces existing EU-derived procurement regulations with a single, consolidated framework, reducing complexity.
A ‘competitive flexible’ procedure allows contracting authorities to tailor procurement processes to suit specific project needs.
This means more opportunities for innovative and bespoke retrofit solutions that focus on quality, sustainability, and long-term community impact.

2. Increased transparency and digital accessibility

The Act mandates a centralised digital procurement platform, streamlining bid submissions and reducing administrative barriers.
All procurement opportunities and awarded contracts will be published openly, providing real-time visibility of available work.
This levels the playing field for smaller businesses, making it easier for SMEs and cooperatives like RetrofitWorks to compete fairly.

3. A stronger role for SMEs and cooperatives

Large public contracts will be divided into smaller lots, increasing access for local businesses and trade professionals.
RetrofitWorks, as a cooperative bringing together SMEs, can capitalize on this shift, ensuring greater participation in public-sector retrofit projects.
30-day payment terms will be enforced across a wider range of contracts, ensuring faster payments and improved financial stability for suppliers.

4. A sustainability-driven approach

Public procurement decisions must now explicitly consider social value and sustainability.
This means contracting authorities will prioritize companies that promote carbon reduction, local economic benefits, and community well-being.
RetrofitWorks’ commitment to sustainable retrofitting and energy efficiency solutions aligns well with this new focus, making it a strong competitor for public-sector contracts.

5. Stricter compliance and supplier vetting

A Procurement Review Unit (PRU) will oversee procurement practices, ensuring fairness and compliance.
Authorities will exclude suppliers with poor performance records, raising the standards for contractor eligibility.
While this raises the bar for entry, it also presents an opportunity for quality-driven providers like RetrofitWorks to stand out.

What does this mean for RetrofitWorks and its members?

1. Easier and more efficient access to public contracts

The centralised procurement system reduces administrative burdens, allowing RetrofitWorks and its members to access and bid for contracts more efficiently. By using the new digital platform, it will be easier to track demand for retrofit services, particularly in local government projects.

2. More opportunities for SMEs and cooperatives

Since the Act encourages breaking large contracts into smaller lots, RetrofitWorks and its SME members will find it easier to compete against larger Tier 1 firms. This ensures local businesses and tradespeople have fair access to contracts, strengthening the retrofit supply chain.

3. Expansion beyond social housing

The Act covers all public-sector procurement, not just social housing retrofits. This means RetrofitWorks can explore new opportunities in schools, hospitals, government buildings, and other public infrastructure projects. The broadening of eligible sectors provides long-term growth potential for the cooperative.

4. Competitive advantage through sustainability and social value

With sustainability and social impact now key decision factors, RetrofitWorks can highlight its expertise in energy efficiency, carbon reduction, and community-centred retrofitting. Local authorities will increasingly prioritize bids that demonstrate long-term environmental and social benefits, positioning RetrofitWorks as a preferred contractor.

5. Improved financial stability through faster payments

With 30-day payment terms becoming the standard, RetrofitWorks members will experience better cash flow management. This stability reduces financial strain and allows businesses to scale more confidently.

6. Adapting to stricter compliance requirements

While the Act introduces stricter supplier vetting, this can work in favour of quality-driven providers like RetrofitWorks. By ensuring that all members meet procurement requirements, the cooperative can demonstrate its commitment to high industry standards.

Final verdict: a major opportunity for RetrofitWorks

The Procurement Act 2023 represents a game-changing shift in public-sector contracting, particularly for SMEs and sustainability-focused businesses. By aligning with these new procurement priorities, RetrofitWorks can secure more contracts, grow its membership, and strengthen its impact in the UK retrofit industry.

Key benefits for RetrofitWorks:

✔ Simplified procurement processes make bidding easier
✔ SMEs and cooperatives have greater access to contracts
✔ Sustainability and social value now prioritized
✔ Faster payments improve financial stability
✔ More transparency ensures fairer competition
✔ Expansion into non-housing public-sector retrofits

By adapting to these changes proactively, RetrofitWorks and its members can position themselves as key players in the UK’s growing public retrofit sector.

Useful material from Government

Familiarise yourself and your colleagues with the Act – check out all the summary documents and videos on the Transforming Public Procurement landing page, which provides further information about the new regime and the learning and development, guidance and support that Cabinet Office is providing.
If you haven’t already, sign up for regular updates here – we will use this to keep you up to date on the Get Ready for go-live webinars and the ‘How to’ videos.
We have also developed a series of supplier Knowledge Drop videos to give you a broad understanding of the Procurement Act and the key changes. There are also dedicated SME and VCSE videos as part of the series. You can view all Knowledge Drop videos here
If you want to dive in deeper, you can also access many of the training materials we are providing to public sector buyers. This includes our suite of guidance documents exploring the different elements of the Act. These can be found here.
Discuss the changes with your regular customers and clients – who will now be thinking about their forward pipelines and which procurements might be undertaken using the new approaches.
And, as we get closer to go-live next year, we will be publishing more information and guidance so you can get ready for the changes. This will cover information on the transitional arrangements and ‘Get Ready’ guides and videos.