Review of regulated procurement compliance

Transport Scotland set out its strategic objectives in section six of its Corporate Procurement Strategy 2024-2025, which align with the four procurement objectives in the Scottish Government’s Public Procurement Strategy for Scotland published in April 2023. Transport Scotland’s four objectives during the reporting period were:

1. Good for Businesses and Their Employees - Transport Scotland will maximise the impact of sustainable procurement that includes boosting of a green, inclusive and wellbeing economy, promoting and enabling innovation in procurement.
2. Good for Places and Communities - Transport Scotland will use the procurement programme for strong community engagement and development to deliver social and economic outcomes to drive wellbeing by creating quality employment and skills.
3. Good for Society - Transport Scotland will ensure that it is efficient, effective, and forward thinking through continuous improvement to help achieve a fairer and more equal society.
4. Open and Connected - Transport Scotland will maintain a high standard of procurement process that is open, transparent, and connected at local, national, and international levels.

These objectives were further sub-divided into delivery sub-objectives. Details of how Transport Scotland has complied with its four procurement objectives are provided below.

Objective 1 - Good for Businesses and Their Employees

Sub-objective 1.1

Transport Scotland engages with suppliers at an early stage to support effective procurement design and encourage innovative responses. During the reporting period, Transport Scotland attended the Supplier Development Programme’s Meet the Buyer National Event, which was held in Edinburgh in June 2024, Meet the Buyer North in Aberdeen in September 2024, and Meet the Buyer South in Galashiels in October 2024. Transport Scotland also attended Procurex 2024 in October 2024 in Glasgow, where Transport Scotland’s Head of Procurement and Contracts presented on the subject of Procurement in Transport Scotland.

Transport Scotland works with its supply chain to foster innovative and entrepreneurial responses by undertaking engagement before the commencement of procurement competitions and permitting variant tenders for some major projects, which enables suppliers to propose further innovations within their tenders. Use of the competitive dialogue public procurement process for major projects allows engagement with suppliers, and encourages innovation and added-value input prior to the issue of final tender documents. Transport Scotland also uses Prior Information Notices (PINs), Requests for Information (RFIs) and industry days when appropriate, to support early market engagement on procurements.

On the A9 Dualling: Tay Crossing to Ballinuig project, a PIN was published to alert contractors and supply chains to upcoming opportunities under the A9 Dualling programme. The PIN was followed by a virtual industry information day, which attracted 33 registered attendees. The event featured videos and presentations that were made available for viewing. Suppliers were also given the opportunity to sign up for one-to-one sessions with the project team. The procurement of this £153 million design and build contract was underway during this reporting period with the contract awarded in Summer 2025. The tender documents for this contract permitted the submission of variant tenders, allowing suppliers to provide innovative solutions as part of their tender submissions.

Sub-objective 1.2

Transport Scotland collaborates with local authorities and public sector procurement forums to embed carbon, climate, and sustainability into its procurement and contracts. Transport Scotland’s Procurement Team supports knowledge sharing and application of robust environmental measures across the agency’s directorates. This has assisted with the practical application of Scottish Government policy, such as supporting the practical implementation of environmental management measures question (4C.7) in the Single Procurement Document (SPD) for procurement competitions.

Transport Scotland requires operating companies to deliver community benefits and sustainability benefits through the Network Management Contracts (NMC). Progress on delivery of these initiatives are regularly discussed with operating companies, and the contract includes regular reporting requirements. Social impacts are also discussed at Transport Scotland’s Roads Directorate quarterly Partner and Leadership Boards, which are partnering boards established with operating companies to consider strategic matters and opportunities that may arise during the contract.

Transport Scotland engaged with other public-sector organisations - like the Edinburgh and South East Scotland City Region deal, and Glasgow City Council - for knowledge sharing on best practice for delivery of community benefits during the reporting period.

Regular meetings are held with key stakeholders from across the transport and construction sectors - including the Construction Leadership Forum, the Association for Consultancy and Engineering Scotland, the Civil Engineering Contractors Association, local authorities, transport operators, and Scottish Water - to exchange ideas, explore opportunities, and address shared challenges.

Sub-objective 1.3

Transport Scotland recognises the importance of developing a resilient supply chain capable of supporting long‑term public-sector requirements. Every project procurement strategy requires project teams to consider lotting structure of contracts to ensure that opportunities are available to SMEs where appropriate. Several of our frameworks include the option to direct award smaller call-off contracts on a rotational basis, meaning that smaller elements of work are distributed across all framework participants, supporting skills and knowledge development though a wider supplier base.

Transport Scotland attends Meet the Buyer and Procurex events to meet with potential suppliers and provide information on how they can find opportunities to work with public-sector contracting authorities.

Transport Scotland aligns with the Scottish Government’s policy on prompt payment of suppliers, aiming to pay all valid invoices within 10 working days of receipt. SPD Question 4C.4 is used in the selection stage of procurements, requiring suppliers to demonstrate a good track record of prompt payment to subcontractors as part of the procurement process.

For major construction projects with a value greater than £5 million, Project Bank Accounts are mandatory. This means that payment is released to the main contractor and subcontractors simultaneously, to reduce payment timescales through the supply chain and improve cash flow.

Sub-objective 1.4

Transport Scotland has a procurement waveplan that is updated quarterly, which forms the basis of its published forward-looking information. Appendix C of this Annual Procurement Report includes details of anticipated future regulated procurements. Regular construction pipeline publication through the Scottish Futures Trust also provides suppliers with visibility of upcoming opportunities.

Supply market capacity is considered when programming the future pipeline of work. For example, the A9 Dualling programme has been phased to ensure that the market will have capacity to bid for and deliver the work required for this major construction programme. PINs provide early notification to suppliers of forthcoming opportunities, enabling the market to prepare for participation in procurement processes.

Since 2023, A9 Dualling programme has used an amended form of the NEC4 Engineering and Construction Contract for capital funded projects. This form of contract is used in other parts of the construction and engineering sectors, and its use was welcomed by industry and the Civil Engineering Contractors Association. The use of standard forms of contract supports our supply chain, provides uniformity across the sector, and supports fair risk allocation between parties.

Transport Scotland actively contributes to Scottish Government budgeting processes through regular financial forecast updates, continued ministerial dialogue, and delivery of value-for-money projects. Internal governance processes ensure no procurement commences without secured financial approvals, establishing the organisation as a reliable and dependable contracting authority.

Sub-objective 1.5

During this reporting period, 63% of Transport Scotland's procured suppliers were SMEs, which accounted for a total spend of over £99 million (10% of the overall procurement spend). Additionally, suppliers reported a further £52 million spent on over 350 sub-contracts with SMEs.

Through adoption of proportionate approaches for low-value contracts, lotting strategies, targeted guidance, and contract management, Transport Scotland supports SME and supported-business access to its supply chain. Project procurement strategies require managers to consider SMEs when determining the procurement route and contract structure, helping to create a diverse and inclusive supplier base. These approaches are reinforced through contract clauses that support SME participation, and the use of Public Contracts Scotland portals to advertise subcontracting opportunities, ensuring an enabling environment for SMEs and supported businesses to contribute meaningfully to Scotland’s infrastructure development while supporting sustainable economic growth.

Transport Scotland’s project procurement strategy requires project managers to consider SMEs when deciding on the procurement route and structure of the contract. This produces a diverse and inclusive supplier base. Transport Scotland’s Ground Investigation framework included 6 SMEs across two lots. This successful approach to encouraging SME participation in framework procurement led to Soil Engineering Geoservices Ltd, an SME, being awarded a ground investigation contract worth nearly £635k for the Tay Crossing to Ballinluig and Pitlochry to Killiecrankie sections of the A9 Dualling programme. The contract included specific sustainability requirements encouraging use of local resources and renewable fuel, which enhanced economic opportunities for smaller enterprises in the project supply chain. A similar lotting structure has been adopted in the procurement of the next Ground Investigation framework, which is scheduled for award during next financial year (2025/2026).

On the A9 Dualling: Tomatin to Moy project, contractor and sub-contractor selection has delivered benefits for SMEs. The construction work has led to 35 subcontracts worth over a value of £33m being awarded to SMEs during the reporting period. This contract also provides apprenticeships, training, and employment opportunities, underpinning not only economic growth for SMEs but sustainable workforce development. Targeted support includes outreach to disadvantaged groups, demonstrating the agency’s commitment to inclusive economic participation and social value creation.

Sub-objective 1.6

Transport Scotland uses a range of tools, training, and template documents to support effective and proportional contract management. This ensures that effective reporting and performance reviews are undertaken which influence continuous improvements in contract management regimes.

Commitments made at the tender stage by bidders are incorporated into contracts (e.g. health and safety commitments on construction contracts) and are monitored and discussed at progress meetings throughout the life of the project.

Where appropriate, Transport Scotland uses key performance indicators or service level agreements to support successful management of contracts. Examples of contracts which include these mechanisms are Transport Scotland’s contracts for the ChargePlace Scotland operator, the Scottish Trunk Road Network Management contracts, and the Digital Data Travel Services contract.

In addition, Transport Scotland operates a supplier performance feedback process, providing six-monthly performance reports to suppliers across all active contracts, enabling both parties to benchmark performance and identify improvement opportunities.

Transport Scotland’s approach to contract management for higher value contracts can be seen in the Trunk Road Network Management Contracts. These contracts require monthly progress meetings and the submission of a monthly report by the operating company. Contractual mechanisms allow performance issues to be identified and addressed through the means of remedial notices. Additionally, the Performance Audit Group contract has been procured to support Transport Scotland in monitoring and auditing the performance of Trunk Road Network Management operating companies, to ensure value for money.

Objective 2 - Good for Places and Communities

Sub-objective 2.1

Transport Scotland embeds Fair Work First, Real Living Wage, and community benefit commitments by requiring project teams to use sustainable procurement criteria and regularly updating training. Project managers are directed to Scottish Procurement Policy Notes and Scottish Government guidance on sustainability when completing procurement strategies. Community benefits guidance is provided to project teams on Transport Scotland’s procurement intranet pages to assist them when identifying suitable community benefit requirements, including training, recruitment and sub-contracting opportunities. The guidance includes Transport Scotland’s community benefits metrics, which are used within the procurement and contract management stages of projects. A version of the metrics is available on the Transport Scotland website, which allows suppliers to gain a better understanding of community benefits requirements.

Transport Scotland’s project procurement strategy template requires consideration of Fair Work First, community benefits and environmental sustainability alongside SME and supported business participation. Including these requirements from the outset means that they are embedded within the procurement process.

Fair Work First and the Real Living Wage are considered in all Transport Scotland procurements. A training course on Fair Work First has been developed and is delivered regularly, ensuring that staff are kept up to date with the Scottish Government’s Fair Work First Guidance and the Procurement Reform (Scotland) Act 2014 Statutory Guidance. This training, alongside guidance produced by the Procurement Team, ensures that project teams understand this policy and how this should be incorporated into procurements and contracts. Through embedding social value requirements and fair work practices, Transport Scotland ensures procurement delivers community and economic benefits. The A9 Dualling Programme projects apply these principles with requirements for employment opportunities, apprenticeships, and community engagement incorporated into procurement competitions and contracts. For instance, archaeological project activities have included educational workshops with local schools, and contract clauses promote employment and training outcomes for local residents.

Transport Scotland’s suppliers develop and maintain forward looking plans and appropriate relationships for the development of supply markets through their contracts. During this reporting period, the ChargePlace Scotland operator, SWARCO, was an active member in the local authority Work Experience placement pool. This ongoing commitment helps to create structured pathways for developing the next generation of skilled workers in the transport infrastructure sector. It does so by strengthening links with educational institutions and establishing sustainable talent pipelines that reduce long-term recruitment risks and support market development through consistent skills investment.

Sub-objective 2.2

Procurement processes require consideration of whole life costings, supporting net zero targets and best environmental practice. Collaboration with internal sustainability teams, regular updates to business practices, and integration of tools such as the sustainability test ensure that all major procurements contribute to sustainable outcomes and the built environment’s long-term resilience.

Where required, Transport Scotland undertakes Environmental Impact Assessments (EIA) for construction projects. The EIA is statutory requirement and a systematic process to evaluate the potential environmental, social, and economic effects of a proposed project or development before decisions are made. It is an integral part of Transport Scotland’s project development process and provides a valuable opportunity to minimise potential environmental impacts. Environmental constraints and issues are identified through consultation, extensive environmental surveys and technical assessments. The information gathered forms part of the tender documentation, and mitigation measures identified within the EIA are included in the requirements of the contract. These assessments support Transport Scotland in minimising the environmental impact of the projects which are being procured.

Transport Scotland was developing the Trunk Road Adaptation Plan during this reporting period. This plan identifies adaptations which will be needed on the Trunk Road that are required to ensure that our built environment remains sustainable and resilient in the face of extreme weather events becoming more frequent. The plan provides a clear and focussed roadmap to guide Transport Scotland’s efforts over the next 5 years to ensure that the trunk road network rains safe, reliable and resilient.

The Transport Scotland Vulnerable Locations Operations Group (VLOG) provides a dedicated mechanism for overseeing the delivery of actions set out in the Trunk Road Adaptation Plan. It works in partnership with the Operating Companies to embed climate adaptation across the operational and strategic frameworks of Transport Scotland’s Roads Directorate. Forum members regularly monitor progress, including the prioritisation of actions and the evaluation of their effectiveness, to ensure continuous improvement and value for money. A budget of approximately £7 million, allocated across the four Network Management Contracts, enabled the construction of 31 schemes in the 2024/25 financial year.

Through Transport Scotland’s Cycling by Design – Promotion & Development contract, Jacobs delivered Cycling by Design training to industry professionals through two live sessions. The training focusing on using the current guidance to optimise cycle infrastructure in Scotland, supporting the development and maintenance of a sustainable built environment. It ensured that professionals were equipped with the latest knowledge to create cycling infrastructure that supports Scotland's active travel objectives.

The Scottish Government’s sustainable procurement tools are used to support delivery of Transport Scotland’s sustainable procurement objectives. This includes the sustainability test and flexible framework tool. Use of these tools supports a consistent approach within public contracts across Scotland.

Sub-objective 2.3

Transport Scotland is a key client for the construction industry in Scotland. In addition to maintenance and operation of the existing trunk road network, it is also committed to construction of improvements to the network, including the A9 Dualling Programme and the A83 Rest and Be Thankful. These large construction schemes involve numerous contracts often undertaken in advance of the main works contract including Ground Investigation works, utility diversions, archaeological surveys, site clearance and property demolition. Transport Scotland regularly engages with the Civil Engineering Contractors Association (CECA) to understand current issues which impact on the sector.

In relation to the A9 Dualling: Tay Crossing to Ballinluig project, no suitable existing construction framework was available that met the specific technical, commercial and delivery requirements of the main works. As a result, the main works contract was procured as a stand‑alone procurement, enabling Transport Scotland to tailor the procurement approach to the scale, complexity and risk profile of the project while ensuring continued alignment with Scottish Government procurement policy.

To support decision making prior to construction of Trunk Roads schemes, Transport Scotland carries out a rigorous assessment process to establish the preferred line for a trunk road improvement project. The three-stage assessment process is based on standards and good practice set by the Design Manual for Roads and Bridges and considers environmental, engineering, traffic and economics. 

For the A9 Dualling: Tay Crossing to Ballinluig project, Transport Scotland implemented strategic mitigation measures by procuring advance works such as archaeological surveys, ground investigations, and utility diversions prior to the main construction contract. This work reduced the risk associated with the main works contract, by providing suppliers with additional information about the conditions on site, and by removing some elements of work from the main construction contract.

Transport Scotland’s recent A9 Dualling construction contracts have included a high emphasis on sustainable procurement principles within the quality element of the evaluation process, meaning that this was a significant aspect of the procurement process.

As with all Transport Scotland procurements, a project procurement strategy must be completed ahead of any construction project procurement commencing. This strategy includes questions on sustainable procurement, including Fair Work First and environmental suitability, ensuring that they are considered from the start of procurement activity and taken through the procurement competition stage and incorporated into the contract.

In parallel, Transport Scotland has supported the Scottish Government in the development of the Civil Engineering Construction Framework and sits on the framework steering group. This engagement helps ensure that future public sector frameworks are informed by Transport Scotland’s experience of delivering major infrastructure projects and are capable of supporting sustainable, resilient and inclusive construction delivery across Scotland.

Sub-objective 2.4

Transport Scotland’s Investment Decision Making (IDM) framework sets out the process by which Transport Scotland agrees investment decisions, including a decision to for projects to proceed to procurement. For major projects the IDM approval process incorporates a five-case model: the strategic case, economic case, commercial Case, financial Case, and management Case. This means projects are assessed at key decision points to ensure that whole‑life costs, value for money, environmental impacts and socio‑economic benefits are considered alongside strategic and commercial factors. The Director of Purchasing sits on the Major Investment IDM Board, providing procurement input and advice to support the consideration of sustainable procurement and whole‑life value as part of investment decision making.

Transport Scotland also ensure that its sponsored bodies consider sustainable procurement. For example, CalMac launched their new Environmental Plan 2024-2027 in September 2024, demonstrating sustainable procurement through comprehensive whole life cost considerations. One of their goals is to utilise partnerships with communities, environmental groups, and educational institutions to deliver long-term environmental and social benefits. This approach ensures value for money by considering the full lifecycle environmental impact while maximising socio-economic benefits through community engagement and environmental education programs.

Sub-objective 2.5

Transport Scotland routinely consults communities and stakeholders as part of its work. The procurement strategy template provides for planned stakeholder engagement to be recorded, to ensure that project procurement managers have identified and considered relevant stakeholders and taken account of their views as part of the procurement process.

Transport Scotland actively integrates stakeholder and community input into transport infrastructure development, ensuring projects respect local heritage and societal values. For example, during the planning of the A9 Dualling: Killiecrankie to Glen Garry project, extensive consultation with local communities and Historic Environment Scotland led to design refinements minimising impacts to the historic battlefield site of the Battle of Killiecrankie, demonstrating sensitive and inclusive planning practices.

Additionally, contracts for archaeological investigations along the route, such as those near Kindallachan Cairn, embed community engagement through educational programmes and local outreach. These initiatives both safeguard heritage and create tangible social value, reflecting Transport Scotland’s ambition to leave a lasting legacy in the communities impacted by the dualling programme.

Through procured contracts, Transport Scotland has been undertaking community needs assessment which will feed into the development of the Islands Connectivity Plan. This plan will feed into the future delivery strategy for how ferry services, supported by other transport modes, will be delivered, and strengthened, working towards a long-term vision, and supported by clear priorities and defined outcomes for people and places.

As part of the A985 Kincardine bridge southern piled viaduct replacement, Transport Scotland’s contractor Balfour Beatty attended two Kincardine community council meetings in May and December 2024 to provide project updates. This engagement supported regular stakeholder communication, helped address community concerns, and enabled transparent reporting of progress. Proactive and responsive engagement of this nature supports effective performance monitoring and helps ensure that contract delivery remains aligned with community needs and expected outcomes.

Sub-objective 2.6

Representatives from across Transport Scotland’s directorates work collaboratively to review and strengthen procurement and resilience processes in the context of the climate emergency. This cross‑directorate engagement also supports knowledge‑sharing and consistency in the integration of carbon reduction and climate change considerations within procurement activity. This collaboration has assisted with the practical application in Transport Scotland of question (4C.7) “Environmental management measures” in the Single Procurement Document for procurement competitions. The SPD also asks bidders (4D.2) to confirm they will be able to provide certificates drawn up by independent bodies attesting that the bidder complies with the required environmental management systems or standards.

For major contracts Transport Scotland routinely publishes PINs and engages with suppliers through industry day events ahead of the procurement process commencing. Where a project includes specific requirements relating to the environment, these will be included in information presented to potential bidders, enabling them to consider this information at an early stage.

The A9 Dualling: Tomatin to Moy project was procured through a competitive dialogue process, enabling the suppliers to engage directly with Transport Scotland, discussing and developing possible solutions and supporting innovation. This project requires extensive work in areas of peat, which are very good carbon stores. Traditionally in road construction, the peat would be removed and disposed of as part of the construction process, which releases stored carbon, contributing to climate change. Transport Scotland sought a more sustainable solution through the development of an innovative Peat Management Plan, which outlines a process for re-using and re-purposing excavated peat. The Plan, produced following input from delivery partners including Scottish Environment Protection Agency (SEPA) and Forestry Land Scotland (FLS), aims to minimise the environmental impact of construction by reducing the opportunity for carbon loss and involves forming multiple ‘cell’ like structures within an area identified as suitable for peat reuse that will be in-filled with peat extracted as part of the dualling. Over time, the site will also provide opportunity for natural peatland flora and fauna habitat and woodland to form, further enhancing the local ecosystem.

Sub-objective 2.7

Waste considerations are built into template specifications and tender criteria on relevant procurements, with a view to improving supply chain visibility, process efficiency, and both cost reduction and environmental impact.

Advance works such as ground investigations, archaeological studies, and utility diversions ahead of full construction contracts are undertaken to reduce delivery risks. This precautionary risk management reduces wastage of materials, time, and costs by addressing uncertainties at an early stage, contributing to more sustainable project delivery and reduced environmental impact.

Transport Scotland’s Clyde and Hebrides Ferry Services operator, CalMac Ferries Ltd, partnered with Enva during Scotland’s Climate Week to deliver two informative sessions on waste. These sessions addressed global and national waste issues, as well as CalMac’s own performance in this area. The aim was to raise staff awareness of the volume of waste they produce, the associated disposal costs, and the challenges faced in meeting new Scottish Government waste reduction targets.

The Trunk Roads Network Management Contracts highlight waste and carbon management as being a key investment objective. This objective is reinforced by the application of measurement and performance indicators. In particular, there is a performance indicator which measures “Waste generation and management”. This is linked to a potential payment adjustment if performance falls below a certain threshold. Performance is assessed based on how much waste goes to landfill compared to the volume of waste that is reused or recycled.

For example, for all road schemes with an estimated value of over £350,000, a Site Waste Management Plan must be developed to set out how the waste produced will be minimised, reused, recycled, recovered or otherwise diverted from landfill. For Works contracts the Trunk Road Operating Company must produce a feasibility report on sourcing at least 20% of materials from recycled or re-used resources.

This arrangement provides a direct financial incentive for Operating Companies to minimise landfill waste. The incentive is twofold: poor performance may result in a payment adjustment, while reuse of materials avoids landfill tax and disposal costs. During the annual period April 2024 to March 2025, sufficiently high performance was achieved in waste management on all four Network Management Contracts to avoid any payment adjustments.

Sub-objective 2.8

It is mandatory for all Transport Scotland staff involved in procurement to complete the Scottish Government’s climate literacy training, which includes information on the circular economy within procurement. In addition to this, the Procurement Team run regular training sessions on the climate emergency and procurement. Climate change and the circular economy are included within the project procurement strategy template which must be completed ahead of any procurement activity commencing.

Updates on the development of Transport Scotland’s approach to incorporating climate change considerations within procurement activity are shared with Directors at the quarterly Procurement Group Meetings. This provides a forum for engagement with senior managers and supports organisational oversight and leadership on climate‑related procurement issues.

Transport Scotland uses a carbon calculator tool on construction contracts to provide a baseline of anticipated carbon emissions and track delivery of reductions against that baseline though the life of the contract.

Sustainability is embedded in the Trunk Road Network Management Contracts and is included as one of the seven key investment objectives of the contract. The contracts require that the Operating Companies’ activities support and contribute towards Scotland’s transition to a low carbon economy. This includes carbon reporting in accordance with a contract Carbon Management System. Operating Companies are required to report monthly material and transport carbon outputs based on the actual quantities of material utilised in Operations. There is also a strong emphasis on reuse and recycling of materials.

To support net zero emissions through workforce development in clean technology the ChargePlace Scotland contract operator, SWARCO, provided training for their 39 staff who completed industry courses and qualifications in Electric/Hybrid Vehicle Technology. The supplier is working to promote a Just Transition by ensuring workers have the skills needed for the low-carbon economy. This supports the development of skills required for the low‑carbon economy while building local capability for electric vehicle maintenance and technology, contributing to circular economy principles and Scotland’s transition to sustainable transport systems.

The Procurement Team collaborated with environmental colleagues and supported with the development of the Transport Scotland's Carbon Management Plan 2022-2027. This document contains details of how procurement can contribute to reducing Transport Scotland’s impact on the environment to meet net zero emissions and contribute to the agency’s Public Bodies Climate Change Duty reporting.

Objective 3 – Good for Society

Sub-objective 3.1

Transport Scotland strives to achieve best value through careful consideration of quality/price ratios and scoring methodology within its contracts. The use of the graduated scoring methodology on selected contracts reduces the likelihood of abnormally low tenders being received, while still ensuring that lower prices contracts are appropriately recognised within the scoring criteria.

Recognising the importance of leveraging its influence in the market, it is Transport Scotland’s policy that all regulated procurements incorporate Fair Work First, Real Living Wage, and Prompt Payment requirements in addition to community benefits. The mandatory project procurement strategy requires consideration of all of these areas, as well as lotting structure and supported businesses, meaning that they are embedded within procurement activity. Internal guidance is regularly updated to ensure that project managers have the tools needed to support them with these requirements.

The procurement and delivery of the A9 Dualling Tomatin to Moy contract demonstrates some clear social return on investment. Alongside infrastructure improvements, the project has achieved workforce development outcomes, including employment of seven graduates and 27 other new entrant employees, and conducting 27 community engagement events (including educational and environmental). Targeted engagement with groups facing barriers to employment, including ex-offenders, has supported job creation and social inclusion. This approach reflects Transport Scotland’s commitment to a fairer and more equitable society through infrastructure investment.

Sub-objective 3.2

Where appropriate, Transport Scotland ensures that its contracts include clauses detailing emergency response and business continuity requirements for its suppliers. The Trunk Road Network Management Contracts, for example, include clauses to ensure that the trunk roads remain resilient. This includes the provision of a Severe Weather Manager, and production of a plan detailing how winter service operations will be delivered from 1 October to 15 May each year.

Experience gained during the Covid‑19 pandemic has informed Transport Scotland’s understanding of the role procurement plays in supporting resilience during emergency situations. Scottish Government advice issued through SPPNs during the pandemic, together with practical actions taken by Transport at the time, provide a reference point for responding to future emergency scenarios.

Sub-objective 3.3

Where required, Transport Scotland undertakes Environmental Impact Assessments (EIAs), which include detailed surveys to identify wildlife that may be impacted by a project. Mitigation measures that are identified through this process are incorporated into contract documents, to ensure that required outcomes are delivered. This can include restrictions on the timing of some operations to protect nesting birds, the provision of animal crossings and creation of new habitats to replace those impacted by construction.

Across the four Trunk Roads Network Management Contracts, specific animal welfare requirements include the implementation of ecological measures. These provide for once or twice-yearly inspections of wildlife provisions throughout the area of the contract and cover a wide range of measures such as fencing, underpasses, grilles and bat boxes. In addition, the Operating Company must maintain an inventory of the locations of protected species and consult with NatureScot in respect of any operations which may affect them.

On the A9 Dualling: Tomatin to Moy project, pre-construction surveys identified several hairy wood-ant nests. A number of nests were relocated in early Spring 2025, with others protected for translocation in advance of later construction works.

Objective 4 - Open and Connected

Sub-objective 4.1

Proactive participation in procurement forums, best practice groups, and training platforms keeps Transport Scotland fully connected to best practice in procurement.

The Procurement Team has close links with project teams across Transport Scotland, working closely with project teams and Delegated Purchasing Authority (DPA) holders to ensure that procurements are undertaken in line with best practice. Procurement lessons learned are regularly gathered from project teams, and are reviewed by the Procurement Team to identify good practice ideas and advice which needs to be incorporated into guidance.

The quarterly Transport Scotland Procurement Group Meetings, attended by senior staff from across the organisation, are a key governance reporting tool and provide a platform to report on procurement performance across Transport Scotland’s nine directorates. In addition to governance reporting, the Procurement Team also reports on progress against its objectives, and provides an update on recent procurement news and policy developments. This communication enables senior staff to remain up to date with best practice in procurement and to support their colleagues in their directorate with implementation.

The Procurement Team also facilitates internal stakeholder groups on procurement information and communication technologies, the climate emergency, and also run drop-in sessions for DPA holders to share updates and insights across directorates. The Director of Purchasing meets biannually with the Scottish Government’s Director of Procurement and Property to share information and discuss procurement topics.

Transport Scotland is an active member of the Scottish Government’s Heads of Procurement Group, Procurement Collaboration Group and Procurement Cluster Group. These groups enable Transport Scotland to remain connected to colleagues from across the public sector, receiving updates on procurement policy and facilitating discussion on best practice.

In addition, the Procurement Team regularly supports engagement with a wide range of stakeholders to discuss specific areas of procurement and share knowledge. This includes regular engagement with industry bodies such as the Association of Consultancy and Engineering and the Civil Engineering Contractors Association as well as participation in meetings with other public sector bodies.

Sub-objective 4.2

Transport Scotland actively seeks to make it easy for suppliers to engage with, bid for, and deliver contracts by adopting a transparent, proportionate and well‑communicated approach to procurement and contract management.

Early and ongoing supplier engagement is a key feature of Transport Scotland’s approach. This includes the use of PINs, supplier engagement events, virtual industry days and structured market consultation exercises to inform procurement strategies, contract design and risk allocation, particularly for high value and complex procurements. Feedback from suppliers is actively considered, influencing both procurement approach and contractual terms, for example through changes to risk allocation and contract structure on major works programmes such as A9 Dualling.

All regulated procurements are advertised and managed through the Public Contracts Scotland (PCS) portal, providing a single, accessible route for suppliers to view opportunities, access documentation and submit bids. Transport Scotland also uses PCS to support transparency further down the supply chain by requiring advertising of subcontract opportunities on appropriate contracts.

Transport Scotland supports positive supplier relationships through robust contract and supplier management arrangements and a strong commitment to prompt payment, aspiring to pay suppliers within 10 days in line with Scottish Government policy. Contractual requirements are also in place to ensure suppliers pay their own subcontractors promptly, and compliance is subject to audit where appropriate.

From a contractual perspective, Transport Scotland seeks to minimise unnecessary barriers to entry by using well‑established forms of contract wherever possible. This includes use of NEC contracts, Scottish Government terms and conditions and Crown Commercial Service standard terms. Specialist contract forms are used where required too. The selection of contract form is informed by market analysis and supplier feedback to ensure it is familiar, proportionate and fit for purpose.

The Procurement Team updates procurement and contract templates including procurement strategies, specifications, tender documentation and contract schedules to improve quality and reduce unnecessary variation for suppliers across Transport Scotland procurements.

Sub-objective 4.3

Transport Scotland continues to invest in and enhance its digital systems to improve the quality of procurement data, strengthen management information, and increase automation across procurement and contract management activities.

The Contracts Database (CoDa) is a key enabler in this approach. It supports robust spend reporting and contract management by holding comprehensive information on procurements and live contracts. This enables the Procurement Team to provide assurance that procurement activity is undertaken in line with Transport Scotland’s Corporate Procurement Strategy and remains compliant with legislative and governance requirements. CoDa also supports the monitoring of contract expiry dates, actual and committed spend, and upcoming procurement activity, enabling improved forward planning and more effective pipeline management. Records within the system are monitored by the Procurement Team to ensure they remain accurate, current and reflective of Transport Scotland’s procurement activity.

Oracle has streamlined Transport Scotland’s procurement processes by enabling better monitoring of contract spend and more efficient invoice processing. With the introduction of Oracle, the Procurement Team can now more easily track off-contract spend and process invoices using Contract Purchase Agreements and Smart Forms. During this reporting period, the Procurement Team, alongside finance colleagues, regularly engaged with the Scottish Government Shared Services Programme team responsible for the development and implementation of the Scottish Government Oracle finance and HR system in Transport Scotland. This helped to ensure that system met organisational requirements.

As well as feedback that suppliers receive from their contract managers, Transport Scotland operates a formal supplier feedback process to ensure that suppliers are receiving consistent feedback on their performance in key areas. Supplier performance was provided by Transport Scotland project managers on all of its contracts every six months and reports were issued to suppliers to provide feedback on their performance. The data from the supplier performance feedback process is used as a tool, by both Transport Scotland and the supplier, to enable comparison of performance across the supplier’s current contracts.

Transport Scotland uses a range of different forms of contract, with reporting and contract management requirements which are appropriate for the scale and subject matter of the contract. Within the devolved procurement model, each of the nine directorates is responsible for their own contract and supplier management processes.

Sub-objective 4.4

Transport Scotland promotes consistency in procurement activity through the routine use of standard tools, systems, guidance and templates, supported by clear communication and ongoing review

The procurement intranet pages provide a centralised source of information for all staff and were reviewed and updated during the reporting period. The Procurement Team use the intranet pages to publish procurement guidance, which outline procurement processes and procedures, from inception through to award of a contract or framework agreement to support consistency across Transport Scotland’s directorates.

The procurement intranet pages are the primary source of procurement information for staff and provide access to guidance on:

• how to contact the Procurement Team

• procurement policy and procedures
• procurement advice and support
• delegated purchasing authority
• sustainable procurement
• tender receipt and opening
• the Transport Scotland contracts database
• contract reference numbers
• procurement feedback
• training sessions in relevant areas
• how legal and policy requirements operate in practice

In addition to the procurement intranet pages, Transport Scotland also advertises changes to procurement policy through targeted emails to DPA holders, publication of news stories in its staff notice and through updates given at quarterly Procurement Group Meetings. This helps to ensure that key messages are consistently understood and applied

The Procurement Team uses a structured approach to update and review template procurement documents which project teams can use for their procurement activities. Continuous review of tools, flowcharts and induction packs ensures staff are equipped to implement best practice everywhere.

The procurement pages of the Transport Scotland website are routinely reviewed and updated when required. The pages explain how Transport Scotland does business and how suppliers can become involved in Transport Scotland procurements.

Information about sustainable procurement and community benefits is available on Transport Scotland’s public-facing website, to support suppliers who may be interested in tendering for procurements. This information includes a community benefits metrics template which is used within Transport Scotland procurements and contracts to benchmark and monitor delivery of community benefits, as well as links to information about Fair Work First within the procurement process.