Council contract regulations

European law

Contracts for the supply of goods and services must comply with the Public Supply Contracts Regulations 2006 (No. 5). The Regulations apply to all contracts for the supply of goods to a value in excess of £172,514*.

Contracts for construction and engineering works must also comply with the Public Works Contracts Regulations 2006 (No. 5). The regulations apply to all contracts for the supply of construction and engineering contracts to a value of £4,322,012*

The value of the contract is either:

  • the aggregate value of the contract over its length or
  • where a contract is of indeterminate length, the value is calculated on the basis of the aggregate value over 48 months.

Contracts for goods of the same nature should be aggregated and, in particular, should not be artificially divided to avoid the need to comply with the regulations.

*Subject to change (normally 2 years, the last review having been undertaken in January 2014). Please check the Official Journal of the European Union for latest figure.