Concerned about Procurement Obligations and State Aid?
Introduction
The UK government has bowed to Brussels and accepted that the European procurement rules apply to housing associations.
Thresholds for supplies and services contracts currently stand at £153,376 and for works contracts is £3,834,411.
Unfortunately the procedures which need to be followed are complex as are the regulations defining services, supplies and works. In addition the entire regime will change in the next two years following the agreement of Member States to a new consolidated Public Procurement Directive replacing the current three.
In addition a number of contracts are expressly excluded from the three sets of regulations which means the prescribed procedures do not have followed.
The most relevant for housing associations are contracts for land and rights related to land and the design and construction of a public housing scheme. Both these exclusions only apply in certain circumstances and specialist advice might be required if RSLs consider they may be relevant.
Key points to remember whenever a contract is being let, irrespective of the thresholds or whether the object a RSL is seeking to secures is a work, supply or service is that all tendering processes must be transparent and non-discriminatory under general European law.
Ashfords has a specialist housing team, who would be happy to provide any assistance :
T: 01392 33 4114
E: housing@ashfords.co.uk
Ashfords is regulated by the Solicitors Regulation Authority. The information in this article is intended to be general information about English law only and not comprehensive. It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.
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