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new public procurement thresholds published - 2012

3 January 2012

The updated public procurement thresholds came into force on 1 January 2012. As the first working day of the New Year for many, today is likely to be the first day of their practical application. Whilst the Regulation sets out the thresholds in Euros the equivalent in Sterling has also been published.

The limit for supply and services and design contracts has increased to £173,934 and the limit for works contracts is now £4,348,350.

Whilst any rise in the thresholds will be welcomed by most public bodies, the increase of approximately 3% is unlikely to have a significant impact on the nature of works or services which trigger the requirement to conduct a public procurement exercise. Current UK inflation stands at 4.8% meaning that even a 3% increase may equate to a reduction in ‘real terms’ here in the UK, but public bodies can at least take comfort in the fact that the thresholds have not been decreased as was the case in January 2008.

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