The Procurement Act 2023, and Procurement Regulations 2024 came into force on 24 February 2025. These two pieces of legislation, which replace existing procurement legislation in England, Wales and Northern Ireland, seek to modernise and rationalise procurement legislation.
Covered procurement
Most provisions in the Procurement Act relate to “covered procurement” – which includes most procurement for works contracts over ~£5 million.
The Act sets out core principles for covered procurement, including that:
- procurement should deliver value for money and maximise public benefit (the “most advantageous tender”)
- information should be shared to enable a better understanding of decision making
- suppliers should be treated the same unless differential treatment is justified, and where there is differential treatment, unfair advantages or disadvantages should be minimised as far as is reasonable
- procurement should seek to address barriers to SME participation
Other important provisions include:
- Standardising the information which must be published for all stages of contracting and procurement via the Central Digital Platform (Find a Tender)
- Only allowing conditions of participation that are proportionate to ensure that a supplier can fulfil the contract. This can include requiring specific qualifications, as long as equivalent qualifications are also allowed.
- Mandating the acceptance of electronic invoices, and setting standard 30-day payment terms
- Addressing potential conflicts of interest and dispute resolution
- Utilising functional requirements within technical specifications
Below-threshold contracts
The Act also provides a light touch framework to regulate “below contract” tenders (i.e., those below the standard threshold for covered procurement). This includes
- Seeking to address barriers to SME participation
- Publishing tender notices for all contracts of £30,000 or above (£12,000 or above for central government contracts)
- Mandating 30-day payment terms
- Not restricting participation in tenders on the basis of technical ability. [N.B. for works contracts between ~£100,000 and £5m, contracting bodies can set technical requirements for participation, as though the contract were above threshold.]
National Procurement Policy Statements
In addition to these legislative requirements, the Act allows for the publication of National Procurement Policy Statements for both England and Wales, which relevant contracting authorities must have “due regard” to. These statements are focused on broader policy priorities, such as delivering growth, innovation and sustainable development, and fostering collaboration.
Procurement Reform (Scotland) Act 2014
In Scotland, a separate legislative regime is in place, governed by the Procurement Reform (Scotland) Act 2014, alongside the Public Contracts (Scotland) Regulations 2015 and the Procurement (Scotland) Regulations 2016.
Scottish legislation is similar, in providing a framework for competitive procurement, addressing conflicts of interest, delivering value for money, facilitating SME involvement, and specifying that relevant information must be published on the Public Contracts website.
While not all procurement falls within the scope of regulations in either Scotland or the rest of the UK, both legislative regimes are well aligned with CIAT’s principles of public procurement, supporting our position that these principles represent best practice, and should be delivered wherever possible.
Scottish Procurement Policy Notes (SPPNs)
Procurement Policy Notes are published by the Scottish Government and provide guidance on best practices in public procurement. The fulfil a similar role to the National Procurement Policy Statements for England and Wales, but each note will typically address a specific issue in procurement. Current Procurement Policy Notes can be found here.
Further guidance
The Construction Playbook
The Construction Playbook is a government document and sets out policies and guidance for how public procurement projects should be delivered. However, it does not have the same force as legislation or the National Procurement Policy Statement. The Institute continues to engage with the Cabinet Office to ensure that future iterations of the Construction Playbook more actively facilitate the involvement of Chartered Architectural Technologists in public sector projects.
Value Toolkit
Under the Public Services (Social Value) Act 2012, public sector bodies must consider how procurement “might improve the economic, social and environmental well-being” and many contracting authorities choose to place a high weighting on social value. The Value Toolkit, developed by Government and 200 construction industry experts, defines value in construction procurement and how it can be measured. Social Value includes addressing areas such as economic inequality, climate change, equal opportunities, and wellbeing.
CIAT believes that all design professionals should be able to compete for public sector design contracts on a level playing field. If you have concerns regarding a specific procurement process, please contact Joanne Rowlands ([email protected]) or [email protected]. You may also wish to raise concerns about UK public procurement exercises via the Government’s Public Procurement Review Service.