25 April 2016

Build UK Issues Procurement of Steel Guidance

In light of recent developments threatening the future of the UK steel industry, Build UK has published practical guidance to support its members in adopting a robust and fair process for the procurement of steel.

Build UK members recognise the impact of the current steel crisis on local communities and the UK economy as well as the issues that presents for the whole contracting supply chain. The construction industry is currently faced with high UK energy prices, the cost of climate change policies, and competition from China, all threatening the viability of choosing British steel. Recognising these commercial realities faced by businesses, Build UK has presented a sensible and well thought out approach to procurement in its guidance that all members can adopt.

Build UK supports the approach taken by Government through its procurement guidance, Procurement Policy Note 16/15, which aims to address barriers that prevent British-based steel producers competing effectively for contracts.

The guidance addresses the true value of British steel by taking into account the following factors with regard to making procurement decisions:

• Adherence to British quality standards and all applicable European Directives and Regulations
• Compliance with a recognised responsible sourcing scheme
• Positive environmental outcomes associated with shorter delivery distances
• Support for local employment and training opportunities.

The need to include both public and private sector construction projects is also referenced within the guidance.

Build UK Chief Executive Suzannah Nichol MBE said:

“Build UK plays a pivotal role in bringing contractors together to support the UK economy and consider the social and environmental impact of how the industry does business. Our guidance encourages a sustainable approach to procurement which will benefit both the construction industry and UK communities for years to come.”

The Build UK Guidance on Procurement of Steel is available on the Build UK website.