3.21 The largest area of spending within the Department for Transport group is construction. Highways England (which is responsible for 71% of DfT's 2014-15 procurement spending) also recognised the value of supporting SMEs within the construction sector. It told us that most SMEs operate locally, so a government contract with an SME would create jobs locally and improve links with local communities. However, both DfT and Highways England told us that construction is a difficult area for SMEs to win contracts, due to the size and complexity of projects. Most of Highways England's construction contracts are worth over £200 million.
3.22 To address this, Highways England took SMEs into account when launching its Collaborative Delivery Framework in 2014. For one framework lot, the contract value is initially limited to £25 million, ensuring that contracts are accessible to smaller businesses. Highways England told us it intends these smaller contracts to allow SMEs to build up a track record of delivery so that they can secure future business and grow.