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.

Quigg Golden specialise in guiding businesses through complex procurement regulations. Here’s an initial breakdown of the key changes and what they mean for you.

1. Introduction of a Debarment List and “Connected Persons”

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 peopke with significant control may also be excluded or added to the debarment list, and vice versa.

What this means for you:

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.

2. Increased Transparency and Fairness

The new Act introduces stricter transparency requirements, meaning that:

• Pipeline Notices must be published to detail upcoming procurement plans;
• A Central Digital Platform will allow suppliers to store their details, opportunities to be published in one place; and
• Key Performance Indicators must be published and performance reported on throughout a contract lifecycle.

What this means for you:

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.

3. Simplification and Standardisation of Procurement Procedures

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.

What this means for you:

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.

4. Enhanced Measures Against Bid Rigging and Collusion

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.

What this means for you:

Businesses must ensure strict compliance with competition laws and train employees to identify and avoid anti-competitive practices.

5. Support for Domestic Industries

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.

What this means for you:

Companies sourcing materials locally may have a competitive edge when bidding for public contracts.

6. Greater Emphasis on Social Value

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:

• Job creation and skills development
• Sustainability and environmental impact
• Support for SMEs and social enterprises

What this means for you:

Businesses will need to clearly demonstrate their commitment to social value within their bids, ensuring they align with government objectives.

Preparing for the Transition

With the February 2025 deadline fast approaching, now is the time to prepare. Businesses should:

• Review existing procurement processes and ensure compliance with new rules
• Train staff on the updated legal requirements
• Develop a strong social value strategy to enhance bid competitiveness
• Seek expert guidance to navigate complex changes

How Quigg Golden Can Help

Quigg Golden specialise in procurement law and compliance, offering:

• Training workshops on the new Procurement Act
• Bid preparation support to help you align with the new regulations
• Legal advice on debarment risks, transparency, and procurement disputes

Visit www.quigggolden.com for more information or to speak with our team.