Sustainability is not simply a “nice to have” in public sector construction. With the climate emergency, rising construction costs, skills shortages and increasing scrutiny of public spending, contracting authorities are under pressure to deliver buildings and infrastructure that are environmentally responsible, socially valuable, and economically resilient.
Procurement sits at the heart of this challenge. The way public bodies procure construction works, services and materials directly shapes outcomes on carbon reduction, waste, local economic growth and long-term asset performance. Choosing the right procurement tools is therefore essential.
Frameworks, existing Dynamic Purchasing Systems (DPSs), and the emerging Dynamic Markets (DMs) offer a powerful foundation for embedding sustainability into construction procurement. When designed and used effectively, these tools go way beyond compliance. They enable public sector buyers to access responsible suppliers, reduce administrative burden, measure performance, and deliver better outcomes for communities.
This guide explores how procurement tools can support sustainable construction, why they are particularly valuable in the public sector, and how they align with the principles of the Procurement Act 2023.
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What does sustainable construction actually mean?
Sustainability in construction is often thought about in terms of carbon emissions alone, but in reality it is much broader. For public sector projects, sustainability typically spans three interconnected pillars:
Environmental sustainability
This includes:
Reducing whole-life carbon emissions (from design through construction, use and end of life)
Biodiversity Net Gain (BNG) considerations to meet mandatory requirements
Using low-carbon and responsibly sourced materials
Minimising waste and increasing reuse and recycling
Improving energy efficiency and operational performance
Protecting biodiversity and managing water responsibly
Social sustainability
This covers:
Creating local jobs, apprenticeships and training opportunities
Supporting SMEs, voluntary sector organisations and social enterprises
Improving health, safety and wellbeing on construction sites
Delivering buildings that positively impact communities and users
Economic sustainability
This focuses on how public money is being spent, including:
Achieving value for money over the asset’s full lifecycle
Reducing project risk and delays
Avoiding false economies that lead to higher long-term costs
Procurement is the mechanism through which all three of these sustainability areas are translated from policy into practice.
Why procurement tools matter in public sector procurement
Traditional, one-off construction tenders can be resource-intensive, slow, and inaccessible – particularly for smaller suppliers who are often best placed to deliver local social and environmental benefits.
Procurement tools such as frameworks and DPSs (and now Dynamic Markets) address many of these challenges by creating pre-competed routes to market that are compliant, flexible and outcome focused.
When sustainability is embedded at the outset, these tools become enablers of better construction outcomes rather than just administrative processes.
How these procurement tools deliver on sustainability
Frameworks for construction procurement
Framework agreements are contracts between public sector buyers and pre-vetted suppliers that sets out standard and compliant terms, avoiding the need for full tender processes. In terms of sustainability, frameworks can be designed to enable buyers to assess suppliers’ sustainability credentials from the very start of the process, ensuring that only suppliers that meet certain criteria are able to bid for contracts. This could include, for example:
Environmental management systems (e.g. ISO 14001)
Carbon reduction plans and net zero commitments
Modern slavery policies and ethical sourcing
Social value strategies aligned to local priorities
By setting minimum standards and weighted evaluation criteria, frameworks ensure that sustainability is not an afterthought but a condition of participation.
Frameworks also enable effective performance management over time. Through KPIs, reporting requirements and regular reviews, suppliers can be encouraged (and required) to improve on areas such as:
Carbon performance
Waste reduction
Health and safety
Delivery of social value commitments
This long-term relationship supports learning, improvement and long-term benefits that one-off contracts rarely achieve.
DPS and Dynamic Markets for construction procurement
Dynamic Purchasing System (DPS) is a digital procurement tool that enables public sector buyers to access pre-qualified suppliers that can join the DPS at any time, meaning that there is quicker access to new providers.
Under the Procurement Act 2023, DPS has been discontinued for new projects from February 2025 (although existing DPS can continue for the duration of their agreed term) and has been replaced by Dynamic Markets for new and future contracts.
Dynamic Markets have a wider scope and increased transparency and flexibility. Both existing DPS and the new Dynamic Markets system are particularly suited to sustainable construction projects because they enable:
Ongoing supplier access
DPSs and Dynamic Markets remain open throughout their lifetime. This means:
New suppliers can join as they become capable
SMEs and specialist contractors are not locked out by timing
Innovative, low-carbon solutions can enter the market more quickly
This openness supports more resilient and diverse supply chains.
Support for local and regional delivery
Construction is inherently local. DPSs and Dynamic Markets can be structured by:
Region or geography
Project size or value
Specialism (e.g. retrofit, net zero, modular construction)
This allows public sector buyers to connect directly with local suppliers, reducing transport emissions, supporting local employment and strengthening regional economies.
More straightforward access for SMEs
Simplified selection processes and proportionate requirements make DPSs and Dynamic Markets more accessible to SMEs. This matters because SMEs often:
Innovate faster in low-carbon construction methods
Have stronger local ties
Deliver higher social value relative to contract size
Procurement tools that lower barriers to entry for SMEs are therefore central to sustainable outcomes.
Digital procurement tools for measuring sustainable construction
A very important, and often challenging, aspect of sustainable construction is measurement.
Procurement tools like frameworks, DPS and Dynamic Markets provide a consistent structure for collecting and comparing data across projects and suppliers, including:
Carbon emissions (capital and operational)
Waste volumes and diversion rates
Use of local labour and supply chains
Apprenticeships and skills outcomes
Health and safety performance
By standardising reporting requirements, expertly designed frameworks and Dynamic Markets help public bodies move from aspiration to evidence-based decision-making, capturing accurate data digitally and publishing results regularly.
This transparency is also critical for public accountability, particularly where taxpayers, auditors and regulators expect clear justification of spending decisions and the value achieved.
Find out more about what to include in procurement reports.
The Procurement Act 2023, which rolled out in February 2025, represents a shift in how public procurement is viewed; away from narrow cost-driven approaches and towards broader public benefit. Sustainable procurement tools like Frameworks and Dynamic Markets align closely with the Act’s core principles, including:
Transparency
Frameworks and Dynamic Markets operate under clear, published rules, supplier evaluation criteria and reporting requirements. This supports openness and trust in public sector construction procurement.
Value for money
The Act emphasises value over lowest price. Sustainable construction procurement recognises that:
Whole-life cost matters more than upfront cost
Energy-efficient buildings reduce long-term public expenditure
Social and environmental benefits deliver measurable returns
Procurement tools make it easier to evaluate and deliver this broader definition of value.
Public benefit and social value
Construction projects shape communities for decades and beyond. By embedding social value requirements into the procurement tools being used, public bodies can help ensure that:
Local people benefit from public investment
Skills shortages are addressed through training
Inequalities are reduced rather than reinforced
Proportionality and SME participation
The Act encourages proportionate processes that do not unnecessarily exclude smaller suppliers. DPSs and Dynamic Markets are a direct response to this principle.
Find out more about the core objectives and principles of the Procurement Act 2023.
Other sustainable procurement tools and practices
Alongside frameworks and Dynamic Markets, there are other tools and approaches that can support sustainability in public construction procurement, including:
Early market engagement to understand sustainable solutions before procurement
Outcome-based specifications that focus on performance rather than prescriptive methods
Whole-life costing models to assess long-term value
Standardised sustainability clauses to ensure consistency across contracts
Collaborative approaches that encourage shared responsibility for outcomes
The most effective strategies combine these approaches within robust procurement tools to deliver more long-lasting beneficial outcomes, all without a significant increase in the admin burden for public sector buyers.
How Procurement Hub can help
Public sector construction accounts for a significant proportion of UK infrastructure investment. The choices made at procurement stage go a long way towards determining whether this investment accelerates progress towards net zero, supports local economies and delivers assets fit for the future, or instead locks in higher costs and emissions for decades to come.
Procurement tools are not just routes to market. They are strategic levers for change and greater efficiency.
By using our range of expertly designed solutions that already have sustainability at their core, public bodies can:
Reduce environmental impact
Strengthen local supply chains
Improve project outcomes
Demonstrate leadership in responsible procurement