More pressure on contractors to buy British steel

The UK construction industry is under mounting pressure to use British steel, with a new directive issued by the UK’s largest contractor trade organisation.

Build UK, which represents 27 main contractors and 11 specialist groups with a combined membership of 11,500, has issued a guidance note encouraging members to consider a wider range of issues besides price when procuring steel, such as responsible sourcing and delivery distances.

This follows the Government’s Procurement Policy Note 16/15, issued last November, which encouraged central government department procuring projects worth over £10m to buy British steel. It was extended earlier this month to include local authorities and the NHS, though its likely effectiveness has been questioned.

Construction Manager also understands that MPs from steel-producing areas, such as Cleveland and south Wales, are writing to construction companies urging them to buy British when procuring steel.

The Build UK guidance note said: “Build UK members are committed to providing opportunities for British-based steel producers to support local economies, create jobs, and reduce carbon emissions from transport.

“EU procurement rules require fair and open competition between member states and prevent public sector organisations involved in public sector projects from stating that they will only buy British steel. This does not apply to private sector organisations which can state a preference for British steel, unless they are buying on behalf of the public sector or certain private utilities covered by EU directives.

“Build UK supports the approach taken by Government through its procurement guidance, Procurement Policy Note 16/15. Where Build UK members are responsible for the procurement of structural and reinforcing steel, the priority should always be to deliver a quality product to customers, with procurement decisions based on an assessment of risk, cost, and social and environmental factors.”

The trade body recommended that members consider the following factors on steel procurement:

• Adherence to British quality standards and all applicable European directives and regulations;
• Compliance with a recognised responsible sourcing scheme;
• Positive environmental outcomes associated with shorter delivery distances;
• Support for local employment and training opportunities.

It added that members would also look to influence clients, architects and other firms who may specify steel to consider these factors.

There has been scepticism within the UK construction industry about how much the government’s procurement policy note will help the British steel sector.

A Construction Products Association spokesman told Construction Manager that it was “commendable” but “we question whether such guidelines will be prove even modestly effective. The language used is a giveaway; to require the public sector to ‘consider the social and economic impact of the steel they source across all major projects’ is vague enough so that nearly any procurement manager should be able to meet this requirement.

“If the government really wants to address the problems facing the UK steel industry, then it must answer how it will help control Chinese products being dumped into the EU, together with the high cost of energy that for some large UK manufacturers results in paying 54% more than their EU competitors.”