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Public Procurement Thresholds: Changes for 2022

On 1 November 2021 The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021 (the “2021 Regulations”) were laid before Parliament.

The 2021 Regulations set out the upcoming changes to the financial thresholds under the UK public procurement regulations.

The 2021 Regulations come into force on 1 January 2022, and do not apply to procurements commenced before 1 January 2022.

These financial threshold changes are summarised below:

Public Contracts Regulations 2015

Contract Type

Current Threshold

From 1 January 2022

Public Works Contract

£4,733,252.00

£5,336,937.00

Public Supply and Services

(Central Government)

£122,976.00

£138,760.00

Public Supply and Services

(Sub-Central Contracting Authorities)

£189,330.00

£213,477

Concession Contracts Regulations 2016

Contract Type

Current Threshold

From 1 January 2022

Concession Contract

(Works or Services)

£4,733,252.00

£5,336,937.00

Utilities Contracts Regulations 2016

Contract Type

Current Threshold

From 1 January 2022

Supply and Services Contracts and Design Contests

£378,660.00

£426,955.00

Works Contracts

£4,733,252.00

£5,336,937.00

Calculation of Estimated Procurement Value

The 2021 Regulations also make an important change to the calculation of the estimated procurement value. Under the 2021 Regulations, estimated procurement value should now be calculated inclusive of VAT, rather than net of VAT. This is an important change for contracting authorities, as higher contract values could result in contracting authorities being caught by additional procurement obligations.

This change applies to procurements under the above UK public procurement regulations, as well as the Defence and Security Public Contracts Regulations 2011.

Ashfords’ Public Sector team regularly advise on public procurement processes and compliance with public procurement regulations. For further details on the UK’s procurement regulations or any assistance with public procurements, or any other public sector queries, please contact our Public Sector team who will be more than happy to assist you.

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