Why small and medium-sized contractors should consider a DPS

 

What is a DPS?

Dynamic Purchasing System (DPS) enables public sector buyers, including local authorities, housing associations, and government bodies, to source suppliers for works and services. Unlike static frameworks, a DPS:

  • Stays open for new suppliers - Businesses can apply at any time, not just during set application windows.
  • It has lower barriers to enter into public sector work for small and medium sized businesses.
  • It is flexible for buyers - Public sector organisations can use it even during Section 20 consultation (a key advantage for housing associations and local authorities).

 

At LHC, the DPS covers refurbishment, repairs, maintenance, and energy efficiency works, making it an ideal opportunity for contractors in these fields.

 

Why should SMEs join a DPS?

For small and medium-sized businesses (SMEs)  in the construction industry, winning public sector contracts can be transformative. Traditional procurement routes such as frameworks and tenders often favour larger firms with extensive resources and prior experience.

This is where a Dynamic Purchasing System (DPS) offers a more accessible alternative. Designed to be more flexible and inclusive than traditional frameworks, a DPS opens doors for SMEs to compete fairly for public sector work.

 

  1. Build public sector experience

One of the biggest hurdles for SMEs is proving experience in public sector contracts. By joining a DPS, smaller firms can:

  • Win smaller contracts to build a track record.
  • Develop relationships with public sector buyers.
  • Gain credibility for future, larger tenders.

 

  1. Strengthen your bid portfolio

A DPS acts as a stepping stone to more competitive frameworks. Successfully delivering contracts through a DPS:

  • Provides evidence of capability for future framework applications.
  • Demonstrates compliance with public sector procurement standards.
  • Improves your bidding skills in a lower pressure environment.

 

  1. Grow your business

Public sector contracts offer stable, long-term work, helping SMEs:

  • Secure predictable revenue streams.
  • Invest in hiring and training (eventually even a dedicated bid team).
  • Expand into new markets by proving performance on public sector backed projects.

 

How to get started

Joining a DPS is straightforward. The LHC DPS is open to any supplier meeting the required criteria with a simple online application process.

 

Key steps:

  1. Check eligibility - Ensure your business meets the required standards.
  2. Submit your application - Provide necessary documentation.
  3. Start bidding - Once approved, you will receive notifications for relevant contract opportunities.

 

Ready to take the next step?

Learn more and apply here: LHC DPS.

 

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