CONTRACT MANAGEMENT
HOW HAS IT CHANGED?
Capital Law published an article in September which outlined how the Act changed from the moment it was a green paper, to the six months since it came into effect.
1. Cap of damages – rejected The proposed cap on damages in procurement claims was not adopted. Courts retain discretion, benefiting SMEs, which can still pursue legitimate challenges without risk of inadequate compensation.
2. Automatic suspension
– minimal change The Act introduces a statutory test for automatic suspensions, but changes from the American Cyanamid test are largely cosmetic. Courts will likely continue lifting suspensions to protect public service delivery.
3. Light touch regime – maintained Rather than eliminating it, the Act preserves a streamlined light touch
regime with higher thresholds, recognising the unique needs of health, social care and similar person-centred services.
4. Procurement tribunal – dropped The proposed specialist tribunal for faster, cheaper dispute resolution was abandoned. The court-based system remains, raising questions about accessibility for smaller suppliers.
5. Limited tendering – removed Limited tendering no longer exists as a defined procedure. Instead, authorities may award contracts directly under specific statutory conditions, maintaining familiar terminology from previous regulations.
6. Disclosure of tenders – not adopted The Act significantly expands notice and reporting requirements but stops short of mandating full tender disclosure, balancing transparency with administrative practicality and commercial confidentiality concerns.
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