Procurement is one of the most important stages in any construction project. Your decisions about sourcing goods, services and labour will directly influence cost, quality, timelines, and, increasingly, your environmental and social impact.
As the industry faces tighter sustainability regulations, heightened client expectations, and a push for greater supply chain resilience, selecting the right procurement model is crucial. Having historically been about efficiency and price, your procurement strategy is now about your project meeting compliance obligations, supporting community value and building a long-term competitive edge.
This guide will explore sustainable procurement, why it matters, and how to integrate social value into your procurement model to future-proof your construction business.
What Is a Sustainable Procurement Policy?
A sustainable procurement policy is a formal framework integrating environmental, social and economic responsibility into purchasing decisions. In construction, this means ensuring that materials, services and contractors are sourced in ways that:
- Reduce environmental impact, for example, by sourcing low-carbon materials, minimising waste, and promoting resource efficiency.
- Promote social value by supporting fair wages, ethical labour practices, and community development.
- Enhance economic sustainability, ensuring cost savings are achieved through efficiency, innovation, and supply chain resilience rather than cutting corners.
This policy ensures that procurement decisions do more than just meet immediate project needs; they also contribute to broader environmental and societal goals.
Why Procurement Model Choice Matters
Choosing the right procurement model can shape a project’s entire outcome. One of the most significant considerations is compliance. Governments and industry regulators place growing emphasis on sustainable procurement, making it essential for businesses to align with these standards.
In the UK, for instance, the Procurement Policy Note (PPN) 06/20 requires that public sector procurement decisions factor in sustainability. On a global scale, ISO 20400 provides a benchmark for best practice, helping organisations integrate responsible sourcing principles into their operations. Selecting a procurement model that supports these frameworks ensures compliance and demonstrates a proactive commitment to environmental and social responsibility.
Reputation is another powerful driver. In today’s competitive market, clients, investors, and local communities actively favour companies that can evidence ethical, sustainable, and socially valuable procurement practices. This positive perception can open doors to new partnerships, repeat business, and access to high-value contracts that demand a proven sustainability track record.
The choice of procurement model also affects long-term cost efficiency. Businesses can achieve better value over time by considering life cycle costs rather than focusing solely on the lowest upfront price. This approach encourages investment in higher-quality materials, reduces waste, and increases operational efficiency. It can lead to significant savings across a project’s lifespan.
Finally, procurement decisions play a critical role in risk management. Partnering with reliable, ethical suppliers reduces the likelihood of issues such as material shortages, non-compliance with regulations, or damage to corporate reputation. In a sector where delays and legal disputes can be costly, the right procurement model offers an added layer of security. Proper planning and procurement strategy ensure the supply chain remains robust, resilient, and fit for purpose.
Steps to Building Sustainability Into Your Procurement Model
1. Assess Your Current Practices
Before choosing or refining your procurement model, evaluate your current approach. This might involve a sustainability audit of your supply chain, using frameworks such as the Global Reporting Initiative (GRI) or ISO 20400 to identify environmental impacts, social risks and inefficiencies.
2. Define Sustainability Goals
Set measurable objectives that align with your company values and compliance requirements. Examples include reducing supply chain carbon emissions by 30% in five years, achieving zero waste in procurement by 2030, or sourcing 80% of materials from suppliers with certified ethical labour practices.
3. Establish Supplier Standards
Your procurement model should clearly outline environmental and social requirements for suppliers. This could mean mandating ISO 14001 environmental management certification, prioritising Fair Trade or B Corp-certified suppliers, and assessing diversity in supplier selection.
4. Implement Verification Processes
A strong procurement model includes supplier pre-qualification, regular audits and the use of sustainability scoring systems. This ensures ongoing compliance and drives improvement over time.
5. Embed Sustainability Into Decisions
Move beyond lowest-cost selection by incorporating life cycle costing, green contract clauses, and supplier diversity programs. This procurement approach supports long-term environmental, social and economic goals.
The Role of Social Value in Procurement
Social value is becoming a core factor in procurement decisions, especially in public sector contracts. It refers to the wider benefits generated by procurement activities, such as:
- Social: Creating jobs, supporting disadvantaged groups, and improving community well-being.
- Economic: Boosting local economies, supporting SMEs, and developing workforce skills.
- Environmental: Reducing carbon emissions, conserving resources and promoting sustainable practices.
In the UK, the Public Services (Social Value) Act 2013 and the Procurement Act 2023 have cemented social value as a requirement in public procurement. For contractors, embedding social value into your procurement model can strengthen bids, improve community relations, and secure long-term growth.
How Veriforce CHAS Supports Sustainable Procurement
Veriforce CHAS helps contractors and construction companies develop and maintain procurement models that align with sustainability and social value goals. Through supplier pre-qualification, compliance tracking, and risk management tools, Veiforce CHAS enables businesses to:
- Streamline supplier onboarding with verified sustainability credentials.
- Track and report ESG performance to meet regulatory demands.
- Align procurement processes with ISO standards and best practice guidance.
Integrating Veriforce CHAS into your procurement strategy can strengthen compliance, reduce risk, and enhance your competitive edge.
Choosing the Right Model for Your Project
The “right” procurement model for your construction project will depend on your priorities: speed, cost control, risk management, sustainability, or a balance of all four. However, in 2025, models that integrate sustainability and social value offer the best long-term outcomes.
By embedding environmental responsibility, ethical sourcing, and community value into your procurement decisions, you’re future-proofing your projects and building a stronger, more resilient business that clients, partners, and communities want to work with.