The construction industry is interesting. It’s simultaneously shrinking and growing. Areas like renewable energy are growing, especially as increasingly sophisticated tech improves efficiency and safety, and cuts expenses. But, there is a chronic skills shortage and the workforce is unable to keep up with demand.
According to the Construction Industry Training Board (CITB), the workforce needs to grow by 50,000 per year. Unfortunately, it’s not just falling short of the number, it’s actually losing workers.
This is good news for small businesses because there are a lot of opportunities ripe for the picking within the construction sector. In fact, according to the Federation of Master Builders, SMEs are already forging ahead in the adoption of digital technology. Approximately 70% of SMEs in construction use mobile or web-based apps for work purposes.
Something else in SMEs’ favour is that they provide more apprenticeships than their larger counterparts. That’s one social value element ticked off, right there. There’s just one challenge. It’s pretty big.
Nearly half of those who begin apprenticeships drop out. Two reasons, redundancies and firings, aren’t by choice. However, here’s the interesting bit, over a quarter of the jobs on the Immigration Salary List are in the construction sector. It’s contrary, isn’t it?
The third major reason is low salaries – which is also interesting as you’ll see below.
Construction Jobs in Demand
To address the apprenticeship shortage, the UK government has funded 32 skills hubs, hoping to add 5000 fully trained (albeit on the fast track) apprentices by 2028. Two of the trades emphasised by the public sector are bricklaying and scaffolding.
Now, bricklaying and scaffolding jobs don’t come with particularly high salaries. But, they’re just the first step that apprentices and other newly qualified construction workers take as they begin their careers.
With more experience – and more training – they could end up in one of the top 10 paying construction jobs. (As of 27 February 2025)
Here they are, with their base annual salaries – according to the national average.
| Brickmason | £30,000 |
| Plumber | £32,000 |
| Carpenter | £32,300 |
| Painter | £32,400 |
| Ironworker | £33,400 |
| Electrician | £34,700 |
| Lift Engineer | £36,200 |
| HVAC Technician | £40,000 |
| Boilermaker | £47,700 |
| Construction Manager | £53,400 |
What does this have to do with small construction tenders in the public sector?
We’ll get to it in a bit. But first, let’s look at growth areas.
Renewable Energy Infrastructure is Booming
Between September and October 2024, approval for renewable energy infrastructure increased by 298%. That’s after an increase of 136% the previous month. The growth is in both the commercial and residential sectors.
This reflects the government’s commitment to sustainable energy solutions in construction projects, especially in light of its Net Zero goal.
This is great for SMEs because there’s an abundance of opportunities for small construction companies that provide industry-related products, services, or works, like plumbing, carpentry, painting, and electrical systems – those top-earning jobs in construction work.
The Technology Revolution
Like pretty much every single industry out there, construction-related technology is advancing at a rate of knots. Here’s a quick look at the kind of tech that SMEs should consider if they want to improve their chances when they tender for building construction projects.
Project Management Software
All of the up-and-coming modern tech is here: AI-driven analytics, real-time data integration from various sources, and platforms that enhance collaboration on construction projects.
Virtual and Augmented Reality
VR & AR step out of the gaming world and turn their tech to remote site inspections, immersive design walkthroughs, and real-time safety training. The results are cost and time savings, which are gold in the construction industry.
Generative AI
Gen AI can work magic in construction. For instance, instead of heading back to the drawing board to configure new designs, architects can use Gen AI to produce several design variations. This helps the design team to compare things like material usage, energy consumption, environmental impacts, and costs.
Drones
It’s no surprise that drones are widely used in construction projects. They’re already used to provide real-time aerial imagery, thermal imaging, 3D LiDAR scans, and integration with BIM (Building Information Modelling) platforms for quick and easy data sharing.
However, as software evolves, drones are playing an increasing role in the construction process, especially when it comes to site safety.
4D Simulation
3D modelling is combined with time-based project scheduling to create visual timelines that help identify potential bottlenecks in the construction process. Construction managers can take steps to avoid problems before they arise. It’s pretty handy when it comes to sustainability because simulations can show construction or project managers where resources can be optimised to reduce waste and implement more sustainable building practices.
You’ve got the tools and the talent, now what?
Finding Construction Tender Opportunities
There are various ways to find construction tenders, including online portals, industry publications, and social media. Construction businesses can also use tender alert services like Supply2Gov to receive notifications about new construction tender opportunities.
When searching for construction tenders, businesses should consider factors such as the type of project, the location, and the value of the contract. They should also ensure that they meet the eligibility criteria for the tender, including any relevant qualifications, experience, and certifications.
How to Win Construction Tenders in the UK’s Public Sector
There might be plenty of opportunities for SMEs to win small construction tenders, but they still have to put in the work to come out tops in the evaluation process.
Here are some tips to make the work that much easier.
1) Understand the contract – fully
You can’t skim through the tender documents and then race straight into the questions. There are details that you need to pay attention to, otherwise, you could make incorrect assumptions and totally scupper your chances of winning anything at all.
The tender documents that come with the tender notice will give you all the info you need about the tender process, including critical information such as the closing date for submissions. If not, you can always ask clarifying questions before submitting your tender response.
2) Take your time when you go through the PQQ
The Pre-Qualification Questionnaire is an important document. Go through it carefully and answer the questions honestly. If you don’t meet one or two of the requirements, like not having a waste carriers’ licence, consider, is it relevant to your role. Carpenters don’t really need one, so it’s not necessary to go to the trouble and expense of getting it.
However, if you find that the majority of construction tenders require the licence, then best you get to the nearest licensing department.
3) Visit the site
There’s nothing like seeing the site in person to help you understand what exactly is required and what exactly you have to work with. That way, you can provide more detail in your response to the PQQ and other tender documentation.
4) Provide proof
In the construction industry, time really is money. The longer it takes to deliver a project, the more it costs and that upsets the public sector penny counters. Aside from that, failing to deliver construction projects on time and on budget reflects poorly on your company.
That’s why it’s important to convince contracting authorities that your construction business has everything it needs (tools, people, tech) to deliver contracts on time every time.
Case studies and client testimonials will stand you in good stead here.
5) Ensure you’re accredited and certified
The construction industry is strict about its accreditation and certification requirements. Partly because it’s rather dangerous for workers, but also because danger lingers for building occupants, visitors, pedestrians – any living soul that comes within reach of the new construction. So, the public also needs protection.
You’ll probably need:
- ISO 14001
- ISO 9001
- ISO 45001
- PAS 1192
- PAS 91
- CHAS – Contractors Health and Safety Assessment Scheme
- SSIP – Safety Schemes in Procurement
6) Register on procurement platforms
Procurement platforms, like Supply2Gov (S2G), simplify the procurement process for SMEs in the market for construction contracts. S2G’s database (the biggest in the UK and the Republic of Ireland) has construction tenders from local councils, housing associations, NHS trusts, and various government bodies.
When you register on S2G, not only do you get real-time alerts to live tenders, but you also benefit from expert guidance on the tender process to enhance your chances of success when you submit your bids.
Our platform enables you to tailor your alerts so you receive tenders that match your business size and expertise. Our subscription plans are scalable, so you can start with free local alerts and go up to alerts across the UK and the Republic of Ireland.
Register for free and get instant access to small construction tenders in your area.