Smaller procurements increase competitive tension and draw on industry expertise
In mature markets, well-established tier one contractors with extensive track records and advanced technical capabilities may dominate, leaving little room for competition. Contractor selection becomes a formality rather than a competitive process.
By AnsaradaFri Jul 18 2025Industry news and trends, Innovation, Tenders
Packaging sub-projects into smaller bundles allows a variety of contractors to participate, promoting innovation and efficiencies across multiple project stages. Smaller contractors can develop expertise, contributing to better quality outcomes.
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How programmatic procurement drives competition
These examples demonstrate how programmatic procurement enables large infrastructure projects to meet cost and time constraints, while promoting innovation.
Heathrow Terminal 5 (UK) procurement structured to reduce risk
In 2001 the British Airport Authority (BAA) announced procurement of a new terminal T5 to increase Heathrow’s annual passenger throughput from 67 million to 95 million people. Construction was expected to last five years and cost $8.5 billion USD (2003 pricing).
The delivery of two large terminal buildings, an air traffic control tower, road and railway transport links, 13 km of bored tunnels, a 4,000 space multi-storey car park, airfield infrastructure and a hotel was broken into four streams comprising 16 major projects and 147 sub-projects. The supply chain comprised 80 first-tier and as many as 15,000 fifth-tier suppliers.
The project was delivered on budget, with only minor construction delays. Long planning and design phases enabled efficient construction and clarity of objectives. Project teams were co-located and integrated, and a focus on risk-reduction from the outset incorporated regulatory considerations and learnings from past large-scale projects.
Level Crossing Removal Project in Australia attracts tier-one and smaller contractors
The Level Crossing Removal Project (LXRP) in Victoria, Australia, took a clear pipeline of work and segmented it into smaller contracts, attracting both tier-one and smaller local contractors. This procurement strategy helps to build long-term industry capability and ensures greater competition for future tenders.
Mega projects in Denmark encourage innovation and cost efficiency
In Denmark, 1988, procurement for a large bridge was divided into three packages, the substructure, prefabrication of the superstructure and the transport and erection of the superstructure.
Bidders bid for the owner-identified alternatives but also provided additional alternative structural arrangements, and a bidder alternative was selected as being more economically advantageous. Design risk was reallocated to the contractor, a natural outcome of the bidder’s alternative being selected for the project.
Building the HS2 through over 300 work packages and more than 3,200 companies
Large-scale, complex infrastructure programs like the UK High-Speed 2 project have extensive scope. Breaking the project into multiple phases, contracts and work packages ensures that the right expertise is engaged at the right moment.
Phase 1 of the new railway is under active construction and completion is expected between 2029 and 2033. The Programme Management Office (PMO) oversees the project, with separate project boards to oversee delivery to time, cost and quality.
Managing complex programmatic procurement is simpler with a central, digital, purpose built platform
To realize better quality outcomes, promote innovation and efficiency, procurement managers must be willing to find practical, centralized solutions to tender and project management. Programmatic infrastructure procurement is not new — but it’s now easier to oversee and manage with digital procurement tools.
With pre-built workflows, world-leading cybersecurity and AI-features, Ansarada’s Procure brings order to complex projects. Streamline workflows and gain oversight of progress instantly — get a demo today to learn more.
