Procure Plus, in partnership with leading law firm Devonshires Solicitors, recently hosted an insightful session focused on the opportunities and challenges associated with below-threshold procurement contracts in the social housing sector.
The event, which brought together procurement professionals, legal experts, and representatives from housing providers, explored how new obligations under the Procurement Act 2023 can unlock greater access for small and medium-sized enterprises (SMEs).
Attendees were guided through the legislation’s implications, particularly the new duties for contracting authorities to consider and reduce barriers SMEs face in tendering for contracts below the public threshold.
Becky Pearson MCIPS, Procurement Manager at Procure Plus, opened the session by highlighting the enormous value SMEs bring to the UK economy – and the potential for social housing organisations to benefit from their agility, innovation, and local knowledge.
SMEs make up 99.8% of the UK’s business population, employing around three-fifths of the private sector workforce. From construction to professional services, their contribution is not only vital but increasingly recognised in procurement legislation.
However, SMEs often face disproportionate barriers when bidding for public sector contracts. These include overly complex tender processes, rigid eligibility requirements, and limited access to information about upcoming opportunities.
Smaller organisations may also lack the time, resources, or previous experience typically required to compete, despite being well-qualified to deliver.
The session explored practical ways social housing providers can help level the playing field. Suggestions included simplifying procurement documents, adopting more flexible engagement methods, and proactively reaching out to local suppliers.
The importance of market engagement, clear advertising (especially for contracts valued above £30,000), and reduced procedural burdens was emphasised throughout.
Kris Kelliher, Partner at Devonshires, provided a legal deep dive into the Procurement Act’s provisions, clarifying the procedural rules for ‘regulated below threshold contracts’ and the importance of transparency, fair access, and timely payment terms.
He also demystified how housing associations and local authorities can remain compliant while still tailoring procurement approaches to meet their own operational needs.
Throughout the session, dozens of hands were raised in response to questions about thresholds, advertising rules, and contract procedures, highlighting the confusion many still feel about how the new rules apply.
Common queries included how to distinguish between services and works – an important classification that affects which threshold applies – and whether large contracts can be split into smaller ones to fall below the threshold.
Speakers clarified that related contracts must be aggregated unless there’s a valid reason not to, and that attempts to artificially split contracts could risk non-compliance.
Clare Tetlow, Procurement Lead at Procure Plus, said: “There’s a real appetite across the sector to get this right – but also a great deal of confusion.
“We saw firsthand just how many people are still unsure about the rules around below-threshold procurement.
“These contracts are a huge opportunity to support local suppliers and deliver real social value, and they’re particularly important in the social housing sector, where every pound spent has to work harder for communities.
“We want to help organisations feel confident in opening up their processes without falling foul of the law.”
Kris Kelliher, Partner at Devonshires, said: “The questions and observations raised by the attendees during the session provided a really good insight into how the social housing sector approaches the procurement of below threshold contracts in practice.
“It was really interesting to get the attendees’ thoughts on the challenges and opportunities the new Procurement Act will present them with in this regard.”
Procure Plus is a Housing Digital Stakeholder and a social housing regeneration consortium that generates efficiencies by leveraging the procurement of construction materials and contractors.
Image: Clare Tetlow, Procurement Lead at Procure Plus
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