Compliance gaps see a fifth of large construction firms lose tender opportunities

One in five (21 per cent) large construction firms have lost a tender opportunity, been excluded from a bid or been marked down because they could not produce supplier compliance evidence quickly enough, according to new research from Xpedeon.

The findings come as Government moves to speed up major infrastructure delivery, with contractors under increasing pressure to respond quickly to procurement and due diligence requirements.

Based on a survey of 500 senior construction, finance and commercial leaders at UK construction companies, The Construction Compliance Index 2026 found that these setbacks occurred because supplier compliance evidence, such as supplier certificates, onboarding records and approval trails, could not be assembled quickly enough during tender or due diligence processes.

Alarmingly, almost two-thirds (64 per cent) of organisations described documentation gaps as posing either a moderate operational or major business risk. This highlights the importance of being able to produce supplier compliance evidence quickly when clients or procurement teams request it – moving the issue from an admin concern to a major commercial threat.

For contractors bidding for public sector frameworks, infrastructure programmes, housing frameworks and other regulated work, supplier readiness is becoming increasingly integral to commercial competitiveness. Businesses may have the right project experience and delivery capability, but delays in evidencing it – producing supplier approvals, certifications and supporting records – can still weaken an otherwise competitive bid.

Vivek Sharma, Executive Director and founding member at Xpedeon, said: “The issue for many contractors is that approvals, certifications and supporting evidence are often spread across different systems and managed by different teams. When procurement teams ask for that information, it frequently has to be pulled together manually against a deadline.

“Contractors may have the right experience, delivery capability and commercial offer, but if they cannot demonstrate supplier readiness quickly, opportunities can be lost before a project has even begun.

“Construction businesses shouldn’t have to rebuild supplier compliance every time they bid for work. Keeping supplier records connected throughout the project lifecycle puts organisations in a much stronger position to respond quickly and compete more effectively when new opportunities arise.”