But he also said it would be more difficult to use the legislation to enforce minimum wage levels because the EU took the view this should not be done through the procurement procedure.
The Bill was delayed while the EU was drafting new rules but the First Minister said that time had been used to consult with the STUC and others about ways of improving the legislation, including taking the opportunity to outlaw blacklisting.
He was making his first appearance at the Holyrood's "Star Chamber", the Conveners' Group headed by Presiding Officer Trisha Marwick and comprising the conveners of all the Parliament's main committees.
Mr Salmond said the Bill would enhance the chances of small and medium sized companies winning contracts and provide for community benefit clauses in contracts, but he pointedly said that only an independent Scottish Parliament could lay down a minimum wage.
STUC general Secretary Grahame Smith said: "It is particularly encouraging that the First Minister confirmed that the Bill will take a tough line on those companies engaged in blacklisting and flouting employment law."