Trends in major project procurement Highlight Report
It is not only the UK government that is linking increased spending on infrastructure to growth and addressing key economic, environmental and social challenges. Across the globe there is ever growing demand for new energy sources for use in new locations, achieving climate resilience, addressing social mobility and urban renewal and all within a context of digital transformation.
As noted in other recent MPA events, funding is a key enabler for this increased spending (Developing new funding models for major infrastructure, 16 January 2025). But, there is little value in having funding if those who will design, develop and deliver the required infrastructure cannot be sourced and put to work. This is particularly the case for major projects where the supply base is often global and is able to pick and choose where it wants to deploy its resources. In simple terms, it is increasingly as case of a “sellers’ market”, so how do project clients secure the resources they require within financial and regulatory limits.
This full-day seminar will explore at trends in the procurement of goods and services for major projects both within the UK and globally. It will address:
- Global Perspective – what trends in procurement can we see in other markets that may have relevance here in terms of adoption and/or impact in securing appropriate suppliers for UK projects?
- How a major project client is securing innovation, productivity gains and greater certainty in delivery through procurement.
- Legislative changes within the UK and how this could impact supplier landscape from a supplier perspective.
- The supplier landscape, including constraints, market shaping, market creation opportunities, change in balance of power (sellers’ market).
- How clients can address the challenge a changing power-balance and still ensure responsible procurement addressing wider social and environmental considerations.
- Implications of the increasing use of AI in procurement for example:
o If all bidders use similar AI how do we know what they can do rather than the AI says they can do?
o AI tools reviewing bids generated by AI.
o Could choice decline as bidders just focus on those bids where they’ve a higher probability according to the AI?
The exploration of these topics will also provide a foundation for another full day seminar in November on the ‘Rise of the Delivery Partner’ as a particular global trend that is being increasingly adopted within the UK.