It may now be coming a few months later than originally expected, but there is a new public procurement regime on the horizon – and all Northern Ireland stakeholders must ensure they are ready.
On September 12 2024, the UK Government announced that the commencement of the Procurement Act 2023 (the ‘act’) would be delayed from October 28 2024 to February 24 2025.
The act is set to bring significant changes to public procurement rules when it comes into effect. Contracting authorities and suppliers will need to be fully aware of these new requirements and their practical implications.
The act applies across the United Kingdom, although not all provisions apply in Northern Ireland. Procurements by many contracting authorities in Scotland are also excluded.
The reason given for the delay was that the new Labour Government had concerns with the previously published National Procurement Policy Statement and it has decided to produce a new one.
The National Procurement Policy Statement sets out the Government’s strategic priorities in relation to procurement, and is a flexible document that is envisaged to be kept under review and updated from time to time.
Contracting authorities in England must have regard to the statement, but it is worth noting that there is usually no obligation for contracting authorities based in Northern Ireland, nor private utilities, to do so. The Welsh Government may produce its own statement, to which Welsh contracting authorities must have regard.
Therefore, for the majority of procurements and contracting authorities in Northern Ireland, the content of the Statement (and any revised Statement), has limited practical impact, although there may well be some local guidance issued by Construction & Procurement Delivery and/or the Executive that reflects some of principles and objectives set out in the Statement.
What the delay does mean for contracting authorities and suppliers in Northern Ireland, is that they have an additional four months of operating under the current regime and additional time to ensure that they understand the full scope of the new rules, have their documents and procedures updated and are ready to go once the new regime comes into force.
To help contracting authorities and suppliers build knowledge and understanding of the significant changes that will be introduced by the act, the procurement group at Arthur Cox is hosting a morning seminar designed to explain the key changes from the previous legislation and what they mean for your procurement processes moving forward.
Taking place on the morning of Thursday, October 3 at Windsor Park, the event will see a panel of legal experts from Arthur Cox providing insight on the new rules and practical issues both contracting authorities and suppliers are likely to face following commencement. To attend the event, please email eventsni@arthurcox.com
William Curry is partner at Arthur Cox. Please note that this article sets out a high-level summary of the position and should not be relied upon as legal advice. Entities should seek their own legal advice on the consequences and implications for them.
