A new report by the Federation of Master Builders (FMB) has said the economic downturn has had a significant impact on construction SMEs.

According to their report, Improving Public Procurement for Construction SMEs, more than 40% of small and medium businesses are failing to win nine out of 10 public sector contracts, while more than half have seen their success rate fall when bidding for public sector work over the past five years.

The report also looked at the barriers facing smaller firms as they attempt to engage with the public sector procurement process, and outlines recommendations to try and address the problems.

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Grahame Barn, Director of FMB Scotland, said: "Public sector construction contracts are worth more than £2bn per year, so it is vital that SMEs are able to win their fair share of this work.

"The economic and environmental arguments for using small local businesses where possible are widely accepted, so now it’s a case of finding ways to increase this type of procurement.

"Our report highlights a number of barriers that are preventing construction SMEs from winning public sector contracts, and proposes a range of sensible and achievable recommendations for how these can be overcome. Keeping Scottish construction local is important for creating jobs and supporting communities."

The FMB is currently working with the Scottish Government on its review of procurement in construction in Scotland.

The review publication is expected in the autumn.

(JP/CD)