Supply chain

The majority of our work is delivered in partnership with our supply chain so we align key supply chain members with our culture and develop collaborative relationships that improve social, environmental and economic outcomes for us, them and our clients.

Delivering projects to achieve our customers’ requirements and achieving targets for improving the performance of our business on many social, environmental and economic performance indicators is only possible if we work with organisations that share our commitment and have good relationships.

Collaboration and delivering mutual benefits form the basis of our approach to our supply chain strategy which establishes and maintains long-term trading relationships with key subcontractors, suppliers and manufacturers.

Policies, management and compliance

Delivering projects to achieve our customers’ requirements and our aspirations relies on us having the best possible relationships. Achieving targets for improving the performance of our business on many social, environmental and economic performance indicators is only possible if we work with organisations that share our commitment.

We actively engage with our supply chain to promote our principles and practices.

Our supply chain predominantly consists of subcontractors, who operate on our sites, and suppliers, who provide materials. We select and manage our subcontractors and some materials suppliers at a local level to maximise local economic impact, but in accordance with robust procedures to minimise risk to our projects. This approach is coupled with the central procurement of key commodities to benefit from strategic supplier partnerships and economies of scale.

We engage with our supply chain using a range of methods such as Meet the Buyer events, meetings, workshops and conferences.

Via Advantage through Alignment, we work with leading supply chain members to create a mutually-beneficial understanding that ensures all parties involved recognise the values and underlying aims of all our businesses and reflect that as part of our long-term collaborative relationships. Simon Stone Head of Supply Chain Management, Galliford Try

Performance

Aligned subcontractors
We continue to focus on developing collaborative, long- term relationships with our supply chain partners through our Advantage through Alignment (AtA) programme.

AtA is designed to enable deep collaboration and provide support to Aligned subcontractors through training and education, by sharing our working practices, values and our vision and by giving access to our behavioural safety programme, Challenging Beliefs, Affecting Behaviour, BIM training and Continuing Professional Development.

During the year, our core trades spend with Aligned subcontractors was 59% (2024: 61%).

Supplier payment
Maintaining the financial resilience of our supply chain is a key priority for us and we are therefore committed to paying our suppliers promptly. Our target is to pay 95% of supply chain invoices within 60 days. We continue to outperform this target, with 97% of invoices paid within 60 days in the year to 30 June 2025 (2024: 96%) and the average days to pay remains low at 26 days (2024: 26 days). We were signatories to the Prompt Payment Code, which was replaced during the year by the Fair Payment Code. The Fair Payment Code has Gold, Silver and Bronze Award categories, underpinned by fair payment principles. We have achieved the Bronze Award, which is for companies that can demonstrate that they are paying at least 95% of all invoices within 60 days, and is therefore aligned with our existing target.

Key Performance Indicators

% of business unit core trades spend with Aligned subcontractors

Prompt payment – % of invoices paid within 60 days

Initiatives

Common Assessment Standard
We have implemented a new supplier onboarding system which aligns to the Common Assessment Standard. Developed by Build UK, Civil Engineering Contractors Association (CECA) and other assessment bodies and industry experts, the Common Assessment Standard standardises the prequalification process, helping our subcontractors achieve compliance and mitigate risks across 13 key areas of risk management. To achieve certification, subcontractors only need to evidence their compliance in these areas once a year on the online portal. Adopting this standardised approach

Helps us identify suitably qualified contractors using less time and resources.
Aligns us with the UK Government’s recommended standard for construction procurement in public sector procurement projects exceeding £5.337m.
Simplifies the tendering process for more suppliers and encourages them to apply for more projects.
Gives us more time to focus on the project-specific areas of the pre-qualification process.

Supplier performance monitoring
In conjunction with the enhancements to our AtA programme, we have developed a more structured supplier performance monitoring framework, to drive greater consistency across the Group and provide better insights on supply chain performance. The framework sets out the minimum standards of performance monitoring across the project lifecycle, from the tender stage through to completion and lessons learned. The insights gained will be used to influence which suppliers we work with on future projects and therefore incentivises both parties to work together effectively. The process is supported by an online platform that provides full transparency, automation and control of performance across our supply chain.