HM Insights

Public Procurement Thresholds set to increase in 2018

The European Commission published Regulation (EU) 2017/2365 on 18 December 2017 to amend the EU Directive on procurement in respect of the thresholds for awarding contracts. The current procurement financial thresholds are set to increase with effect from 1 January 2018 from £164,176 to £181,302 for supplies / services and £4,104,394 to £4,551,413 for works. The new thresholds apply to all EU Member States.

Public Procurement Law Tender Contract Award Lawyer Scotland Solicitor Public Sector

What does this mean?

When a contracting authority seeks to buy supplies / services or works under a contract with an estimated value that exceeds the above thresholds, such supplies / services or works must be publicly procured under the Public Contracts (Scotland) Regulations 2015. Further, any such contract opportunities and awards must be advertised in the Official Journal of the European Union.

In practical terms for Scottish contracting authorities, the thresholds under the Procurement Reform (Scotland) Act 2014 will remain £50,000 for supplies / services and £2 million for works, requiring contracting authorities to publicly advertise contract opportunities and awards through Public Contracts Scotland where these thresholds are exceeded.

Get in touch

If you would like assistance or advice in making sure your procurement processes comply with the amended regulations, please get in touch: