The Procurement Act 2023 is set to come into force on 24th February 2025, introducing significant changes to public procurement rules in the UK. For businesses involved in public contracts—whether in construction, engineering, or professional services—understanding these changes is essential to ensuring compliance and maintaining competitive advantage.
At Quigg Golden, we specialise in guiding businesses through complex procurement regulations. Here’s an initial breakdown of the key changes and what they mean for you.
A centrally maintained debarment list will be introduced, preventing companies with poor performance records from bidding on public contracts. Businesses that have a history of unethical practices, breaches of procurement law, or failing to meet contractual obligations, may face exclusion from future tenders.
The concept of “Connected Persons” will mean that where a subsidiary is excluded, a parent company or other people with significant control may also be excluded or added to the debarment list, and vice versa.
Maintaining high performance standards, transparency, and compliance is more crucial than ever. Companies should review past performance and strengthen internal governance to avoid potential risks.
Groups of companies and people with significant control over suppliers should be aware that they can be linked to the poor performance of other companies within the group, and potentially added to the debarment list alongside them.
The new Act introduces stricter transparency requirements, meaning that:
There will be more transparency of procurement processes than ever before, and therefore greater scrutiny. Perhaps even more significantly, the publishing of contract performance notices will require KPIs to be very carefully drafted and adhered to, as failures will be public knowledge.
The Act will consolidate the currently available procurement procedures into just three: Open Procedure, Direct Award, and the Competitive Flexible Procedure. The aim is to simplify processes and reduce administrative burdens, making it easier for SMEs to compete for public contracts, and allowing Contracting Authorities to tailor their procurement process to suit their needs.
The Competitive Flexible Procedure will allow Contracting Authorities to design their own procurement processes. As each procedure may be at least slightly different, both Contracting Authorities and suppliers should pay careful attention to the rules of a procedure and compliance with the regulations.
The Act introduces tougher measures to prevent anti-competitive behaviour such as bid rigging and collusion. AI-backed monitoring systems will be used to detect irregularities in the procurement process.
Businesses must ensure strict compliance with competition laws and train employees to identify and avoid anti-competitive practices.
While not yet a legal requirement, the government is increasingly favouring UK-made materials and suppliers in procurement decisions, particularly in industries like construction and manufacturing.
Companies sourcing materials locally may have a competitive edge when bidding for public contracts.
The UK government is placing increased importance on social value in public procurement. Contracting authorities will be required to evaluate how bids contribute to wider societal benefits, such as:
Businesses will need to clearly demonstrate their commitment to social value within their bids, ensuring they align with government objectives.
With the February 2025 deadline fast approaching, now is the time to prepare. Businesses should:
At Quigg Golden, we specialise in procurement law and compliance, offering:
Get in touch with us today to ensure your business is ready for the Procurement Act 2023. Visit www.quigggolden.com for more information or to speak with our team here.
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