Tim Barrett, chair of Construction Alliance North East discusses why SME contractors still struggle to win a place at the table for construction frameworks
Construction frameworks were meant to level the playing field by streamlining public procurement, cutting red tape and improving value. In reality, many small and medium-sized enterprises (SMEs) are finding it harder than ever to access them.
Across local authorities, NHS trusts, universities and infrastructure bodies, frameworks have become the default procurement route. As they have grown in size and complexity, the barriers to entry have increased, too. The result, many argue, is a system that increasingly favours the largest contractors, undermining local economic growth and supply chain diversity.
Winning a place yet missing the work
Even when SMEs do win a place, many struggle to secure projects. Frameworks typically award jobs through mini competitions among approved suppliers, with clients often gravitating toward familiar Tier 1 names. This phenomenon, known as framework shelfware, leaves smaller firms frustrated. They invest time and money securing a place yet see little or no return.
Frameworks are increasingly structured for large organisations. Requirements around national delivery, ESG reporting, digital maturity and cybersecurity are easier for major contractors to meet. At the same time, the value and scope of frameworks have ballooned. What was once a £20 million local framework may now be a £500 million regional one, automatically excluding SMEs. Designed for efficiency, they often consolidate work among a few big players while relegating smaller firms to subcontracting roles.
Consequences and Frustration
Excluding SMEs has wider implications. Reduced competition risks higher prices and less innovation. Local economic loss occurs when community-based contractors are sidelined. Less agility slows the delivery of housing, retrofit and decarbonisation programmes. Missed innovation means clients rarely access new methods or materials pioneered by SMEs.
Trade bodies have repeatedly warned about disproportionate requirements. Government guidance encourages breaking contracts into lots and considering SME participation, yet many frameworks continue to bundle projects into packages too large for smaller firms.
Making frameworks work for SMEs
Experts suggest practical reforms. Break frameworks into smaller lots so SMEs can compete on a realistic scale. Simplify documentation with digital templates and plain English guidance. Calibrate turnover and insurance thresholds to match project value. Provide training and bid support to build SME readiness. Mandate local supply chain participation with transparent reporting. Increase transparency in call-offs and provide actionable feedback to help SMEs improve and reapply successfully.
Reforming frameworks is not just about fairness. SMEs make up over 95% of UK construction businesses and nearly half of the sector’s workforce. They are vital to regional economies and national capacity. Unlocking SME participation would boost innovation, deliver better value and help meet government goals on levelling up, housing and net zero. With major contractors facing labour shortages and capacity constraints, engaging smaller firms could ease systemic pressure.
Some newer frameworks are showing promise. The Procure Partnerships Framework includes regional lots and smaller value bands to attract local firms. Dynamic Purchasing Systems allow suppliers to join at any time rather than waiting years for renewal. These models point to a more agile, inclusive future, though they remain the exception in a landscape still dominated by mega frameworks.
The way forward
Frameworks remain essential to public procurement. Unless they evolve to reflect the industry’s true makeup, they risk entrenching inequality and inefficiency. SMEs are not asking for special treatment, they are asking for a fair shot. They bring local insight, flexibility and innovation that public clients need.
With proportionate entry criteria, simpler processes and transparent call-off frameworks could once again become engines of opportunity rather than barriers.
The post Are construction frameworks locking out SMEs? appeared first on Planning, Building & Construction Today.
