Robert Walton, Chief Product and Engineering Officer at Constructionline, debunks four myths around the recently-announced PPN 03/24 and what it means for procurement processes.
Constructionline
Earlier this year, the Government published PPN 03/24, a guidance document to standardise, improve efficiency and drive up levels of safety at the pre-qualification stage in public sector procurement, especially for work contracts.
Since its release, some misinformation has been published about what is legally required to ensure those with procurement and purchasing power remain compliant. To bring clarity to businesses, experts at Constructionline have delved into the update and decoded the jargon to debunk some myths about PPN 03/24.
Myth 1: PPN 03/24 mandates a complete shift from PAS 91 to the Common Assessment Standard
Some reports have suggested the update mandates a complete shift from PAS 91 to the Common Assessment Standard (CAS). This isn’t the case; the document says: “…Contracting authorities should use the Common Assessment Standard”.
While it may sound like semantics, it’s important to note the distinction between ‘should’ and ‘must’ in these pronouncements:
Should: Indicates a recommendation that’s generally expected to be followed
Must: Signifies a mandatory requirement. In this case, the CAS for works contracted above the £5.337m threshold is a strong recommendation by the Government, but not a legal requirement. The Building Safety Act encourages contractors to adhere to higher-quality standards and becames part of the CAS on 1st July.
Myth 2: PAS 91 is outdated, and using it means non-compliance
The British Standards Institution has withdrawn PAS 91, therefore, the Government recommends using the CAS for pre-qualification questionnaires. PAS 91 is still in line with the Procurement Regulations, and public bodies subject to those regulations can continue to use it and remain compliant. It’s worth noting that PAS 91 has faced challenges keeping pace with industry demands and regulatory changes, therefore, construction businesses should still consider the benefits of using the CAS.
Myth 3: The Common Assessment Standard is required for works contracted above £5.337m
This PPN offers specific advice on using the CAS as a pre-qualification tool when awarding contracts over £5.337m per year, subject to the Public Contracts Regulations 2015. It helps assess whether a bidder’s supply chain has effective systems to ensure reliability. Although the Government and Constructionline recommend the CAS, it is not mandatory to use that standard for public sector contracts above £5m.
Myth 4: The PPN 03/24 is irrelevant for anyone working on contracts below £5.337m
The recommendation for implementing the CAS for pre-qualification questionnaires is primarily aimed at projects exceeding £5.337m. However, that’s not to say that the PPN 03/24 shouldn’t be read and understood by procurers working on public contracts.
Constructionline partnered with Build UK to help them develop the CAS, crafted from existing systems, like PAS 91 and from expert input from clients, suppliers and trade organisations. Championed by Build UK and the Civil Engineering Association, the standard’s main objective is to create a more streamlined and consistent process for assessing the capabilities and compliance of potential suppliers. Although using the CAS is not mandatory, it still provides value for construction sector businesses involved in public procurement.
Robert Walton is the Chief Product and Engineering Officer at Constructionline
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