GUIDE: 12 Problems of Procurement (and how to solve them)

Procurement trends 2025: What industry leaders must know

By ProcurePro, updated 18 Mar 2025
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Procurement has always been central to construction. In 2025, it faces even more pressure. Margins are shrinking, supply chains remain fragile, and sustainability targets keep tightening. The stakes are higher, and the way you procure now will dictate project profitability like never before.

To stay ahead, it's essential to understand the 7 steps of the procurement process to streamline your construction projects.

Across the UK, Ireland, Australia, and New Zealand, contractors are shifting fast.

The Old Way of emails and spreadsheets simply can’t keep pace with tighter budgets, regulatory demands, and sudden material shortages. The industry is embracing digital platforms, integrated workflows, and smarter approaches to reduce risk and win more bids.

For insights on these changes, explore our ProcurePro Blog for the latest updates.

Why the spotlight is on procurement

Procurement isn’t just about chasing the lowest price. Risk management, visibility, and alignment with bigger company goals are now front and centre. Manual processes, late supplier checks, and missing scope items hit project margins hard. As one senior quantity surveyor quipped, ‘You have to think like a lawyer while still knowing how things get built.’ For practical tips, see how contracts managers can modernise procurement.

  • Technology is accelerating procurement decisions A.I.-powered tools compare subcontractors, highlight risks, and clarify contract terms. As one team member put it, ‘I can’t believe we’re still relying on Excel in 2024 — it’s a slow way to handle real-time data.’ Teams that adopt digital workflows gain an edge by standardising comparisons and approvals. Learn more about the 7 benefits of construction procurement software.
  • Sustainability targets are reshaping supplier selection Governments and private clients want lower-carbon materials, ethical sourcing, and less waste. Contractors must show how each package meets new ESG thresholds. Forget just ticking a box — ignoring these targets can derail bids and damage reputations. For further insight, check out how sustainability is impacting global supply chains.
  • Supply chain resilience is no longer optional Subcontractor failures, delivery delays, and shifting trade policies have taught the industry some tough lessons. If you rely on a single vendor or skip robust due diligence, you risk watching a project stall overnight. Real-time tracking, fallback supplier clauses, and index-linked pricing are now part of standard risk management. Discover more about common risks of construction procurement to avoid potential pitfalls. Additionally, explore how to build supply chain resilience to understand strategies for overcoming disruptions.
  • Cost management is evolving beyond unit prices Chasing the cheapest quote won’t cut it. Contractors factor in full lifecycle costs, potential rework, and hidden exclusions that subbies sometimes sneak in. One QS vented, ‘It’s maddening. You give them everything, and they still claim they didn’t see it in the docs.’ For big projects, total cost of ownership trumps a quick discount. Avoid such construction pricing mistakes. For additional insights, read about total cost of ownership in construction.

Digital transformation reshapes workflows

Slow, manual processes are out. Schedules, tenders, and contracts now live in one connected platform instead of competing spreadsheets. Approvals move swiftly, and standard templates ensure consistency. You cut admin, reduce errors, and free teams to focus on adding value. For more insights, read about accelerating procurement: Kori Construction’s approach to risk, ROI, and efficiency.

AI assists decision-making

AI spares you hours of sifting through bids. It flags incomplete submissions, highlights suspect rates, and spots a subcontractor’s poor track record. When one sub’s price is 20% above market norms, you see it in seconds. If another has a history of late deliveries, AI raises that red flag long before signing a deal. For more on AI applications, see how AI is transforming procurement.

Data visibility improves coordination

Real-time dashboards keep teams updated, so nobody is blindsided in a project meeting. Approvers see which packages need sign-off without chasing anyone. When everyone has the same data, you move from reactive firefighting to proactive control.

Supply chain resilience gains urgency

Material shortages and financial woes can cripple a project. One quantity surveyor joked, ‘We’ve seen a subbie fold on one job only to be unknowingly hired on another site around the corner.’

Contractors caught off-guard face serious risks. That’s why more robust prequalification, vendor ratings, and backup plans are now standard. To understand the factors causing delays, explore 6 reasons why construction projects in the UK and Ireland get delayed.

Risk identification informs contract terms

Teams aren’t waiting for trouble to arise. They embed protection in contract clauses from the start. Backup suppliers are on call. Index-linked pricing captures shifts in material costs.

Subcontractors get paid only when they hit key milestones. So, if a subbie goes under, or jacks prices midstream, you’re covered. For quality surveyors, here are some tips for breaking down complex contracts.

Sustainability becomes a core requirement

ESG mandates are reshaping procurement. A local council might demand carbon reduction plans and ethical sourcing. Large projects need transparent supply chains and documented waste management.

One QS said, ‘Compliance is often an issue when we end up procuring something that’s not in line with contract requirements.’

For more on this, read about how ESG is reshaping the construction industry.

Supplier collaboration encourages innovation

Meeting sustainability targets often requires partnering with forward-thinking manufacturers. Low-carbon concrete, recycled steel, or modular construction can reduce both emissions and costs. When you share ideas and lock in supply early, you stay ahead of regulatory demands and avoid expensive retrofits.

Workforce skills drive success

Procurement teams need both commercial acumen and digital fluency. A senior QS might be a great cost negotiator but struggle with automated workflows. A junior contract administrator might be tech-savvy yet lack experience in spotting hidden exclusions. Relentless training helps bridge the gap. For more on training, consider developing digital skills in construction.

Tech-savviness shapes the next generation

Younger pros want intuitive software, not clunky spreadsheets. Automated approvals, one-click contracts, and live project dashboards save time and reduce mistakes. This modern approach boosts morale and helps contractors attract top talent. As one QS put it, ‘We know just enough to be dangerous, so we need processes that keep older staff from messing it up and help younger staff learn.’

Cost control moves beyond unit prices

‘Bid to win, claim to profit’ is a reality for some subcontractors. A cheap quote often leads to rework and inflated variations down the line. Head contractors are losing patience with hidden fees. They’re choosing long-term value over a quick discount and using vendor tracking data to prove why a seemingly higher price may actually save money.

Holistic vendor assessment prevents surprises

The cheapest quote won’t matter if it leads to supply chain disruption, messy disputes, or design conflicts. By checking past performance, financial stability, and contractual compliance, contractors avoid time-consuming tension. Well-defined scopes and standardised contract terms seal the deal. That’s how you protect margins instead of giving them away.

Frequently asked questions about procurement trends

How do these trends impact construction projects?

Delayed procurement costs time and money. Digital systems cut the guesswork by consolidating tenders, approvals, and contract data in one place. Stronger risk management prevents budget blowouts by flagging factors like underqualified subs or missing scope items before they harm your bottom line. ESG mandates also reshape bidding. If you don’t demonstrate responsible sourcing and carbon tracking, you face more rejections.

Is advanced software worth the investment?

Yes. Sticking to manual processes drains productivity and invites human error. Automation lets you verify rates, stay aligned on contract terms, and see real-time package status. Subbies are happier because they can respond quickly, and your team is freed up to focus on higher-value tasks, like negotiation and risk management.

Does an SME benefit as much as a large firm?

Absolutely. Smaller teams cannot afford endless admin and reactive firefighting. A single, connected platform gives them the power to manage subcontractors, compare bids, lock in prices, and maintain compliance. They also avoid expensive mistakes that a big firm might absorb but an SME might not survive.

Charting a path to procurement excellence

Procurement shapes outcomes more than ever. Trying to juggle spreadsheets and keep track of a million email threads is a recipe for problems. Real-time schedules, automated approvals, and integrated reporting aren’t just nice-to-haves anymore — they’re your best defence against risk and your strongest ally in boosting margins.

When you convert manual workflows into one connected system, you reduce errors, gain visibility, and speed up decision-making. With consistent templates and a single source of truth, you can manage bigger projects with less stress. As one seasoned QS said after a tough subcontract negotiation, ‘It’s not just about the money we save — it’s about having the clarity to spot trouble before it starts.’

ProcurePro brings every stage of procurement into one connected platform, so you stay on track without chasing spreadsheets. Ready to see how it works? Book a demo and discover the future of procurement today.

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