Procurement Act 2023 implementation date delayed: Here’s what you need to do now
The implementation date of the Procurement Act 2023 has been delayed by four months, the government has announced.
Initially planned for 28 October 2024, the Act will now come into force on 24 February 2025.
In a ministerial statement published online, the Cabinet Office said the delay will allow time for a new National Procurement Policy Statement to be produced.
Marking a significant departure from EU-derived laws, the Act, which received royal assent on 26 October 2023, marks a transformational shift in regulating how the public sector purchases goods and services.
It unifies various regimes under a single framework that oversees public contracts, utilities, concessions, and defence and security procurement.
Louise Bennett, senior associate specialising in public procurement at UK and Ireland law firm Browne Jacobson, said: “A four-month delay to the implementation of the Procurement Act gives much-needed breathing space to public authorities, a large number of which understandably weren’t ready for the significant changes it brings due to the late arrival of statutory guidance.
“This legislation will fundamentally transform how the public sector purchases goods and services, with an overarching principle of ensuring it delivers value for money, maximises public benefit and acts with integrity throughout a procurement exercise that should also continue to focus on equal treatment to bidders.
“It places a greater emphasis on transparency, supplier performance and non-financial criteria such as quality, local job creation and environmental impact.
“This requires public authorities to review procedures and skillsets within their organisation before the Act comes into force, while contract management should be top of the ongoing strategic considerations in order to run smooth procurement exercises.
“They would be wise to use the extra time afforded by the government to ensure they are up to speed on the new regulations and have everything in place so they are now ready from 24 February next year.”
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