With the festive period fast approaching we, at Procure Partnerships Framework, often see a high influx of new project tenders in the run up to the Christmas period. We always welcome these new opportunites, however, at this time of year, it is worthwhile mentioning that the construction sector tends to slow down during this time.
As with many industries, the festive period slows down output within the construction sector. According to the Office of National Statistics, in December 2023 there was a 0.5% fall in construction output compared to November 2023. “Monthly construction output is estimated to have decreased 0.5% in volume terms in December 2023; this came solely from a decrease in new work (1.1% fall)”. This 1.1% equated to £29 million.
With this in mind, if you are a public sector body with plans to issue a new tender or begin a construction project just before the festive period, how can you avoid the seasonal impact of limited bid and delivery resources?
In this article, we’ll examine the challenges of launching new construction tenders and projects during the festive season. We’ll also provide you with guidance on why engagement with the contractor market and supply chain stakeholders is key to achieve a successful tender process or project initiation.
Festive Factors to Consider
Two week festive shut down
In the construction sector, principal contractors traditionally have a two week shut down over the festive period.
The Working Rule Agreement (WRA) is a Construction Industry Joint Council agreement that governs the terms and conditions of employment for the construction sector. In its holiday entitlement for contractors 2024 briefing, it states that for the winter break 7 working days will be taken in conjunction with Christmas Day, Boxing Day and New Year’s Day to give a winter holiday of two calendar weeks.
The anticipation of this festive shut down makes bid resources and delivery resources tight in the weeks preceding it.
Silent nights: Supply chain shutdowns
Many supply chain partners, such as joiners, roofers, suppliers of materials, flooring companies and so on, also have a festive shut down. This means that principal contractors are unable to obtain prices from supply chain partners to complete tenders for contracts.
Additional holidays around the festive period
In addition to the two week shut down, many contractors also dip into their annual leave to take extra days’ holiday to extend their time with family and friends.
Holiday hold-ups due to order fulfilment delays
Due to a growing funnel of orders to be completed ahead of the festive shut down, there can be delays in the supply of materials from manufacturers.
Wrapping up success: Tips for engaging contractors before the festive season
Use a Framework
Using a Framework offers several advantages, especially in this context.
Through Procure Partnerships, you gain direct oversight of contractors’ resource levels during the festive period, enabling you to spot potential resource constraints early and intervene proactively.
Additionally, we have access to comprehensive information about contractors and suppliers, empowering you to make well-informed decisions—an invaluable benefit in time-sensitive situations.
Festive fast track – Is a Direct Award the seasonal solution?
Direct Award procurement allows you to engage with a contractor more quickly without needing to run a full tender with competitive bidding, saving you valuable time.
Direct Award also provides transparency and value for money by allowing you to see every subcontractor package return through easy to compare prices. This helps you make the best selection and puts you in the driving seat to fulfil a project within a set value band, rather than being vulnerable to inflated pricing.
Using Direct Award is beneficial for construction projects that need to start quickly, but not suitable for projects that involve significant public interest or large, complex projects that require a competitive process to secure the best prices.
Take a look at our article that outlines the benefits of Direct Award procurement in more detail.
Beat the holiday rush: Kick off your tender process early!
Alert contractors to any new projects as soon as possible. The earlier the contractor is aware of the opportunity, the more likely they are to organise their bid and delivery resources within your required timescales. Our article on early contractor engagement provides further insight into this.
How can Procure Partnerships Framework help with finding a contractor for Christmas?
Procure Partnerships Framework supports public sector organisations to quickly find compliant contractors and services within their region. More information on the resources and services we offer can be found in our Framework User Guide, which you can download from our website.
Our five specialist frameworks cover: Construction, Professional services, Infrastructure, Demolition, Decarbonisation and Retrofit. Your regional Key Account Manager will be able to provide tailored advice on which process, or call off method, best suits your project timescales.
For any other information about Procure Partnerships Framework, please get in touch
