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Procurement meaning

What does Procurement mean?
Procurement describes how organisations plan, source, tender for and contract for works, goods and services, including appointing contractors, consultants and suppliers on construction projects. In practice it spans private purchasing and public procurement subject to statutory rules. In England, Wales and Northern Ireland, public procurement is governed by the Procurement Act 2023 (which replaces the Public Contracts Regulations 2015), alongside sector-specific regimes (including utilities, concessions and defence/security) and guidance. Scotland applies the Public Contracts (Scotland) Regulations 2015 and the Procurement Reform (Scotland) Act 2014. In Ireland, EU-derived regulations apply (for example S.I. No. 284/2016, S.I. No. 286/2016 and S.I. No. 203/2017). Across these jurisdictions, core obligations of transparency, equal treatment, non‑discrimination and proportionality are consistent. Key legal features include market engagement, selection and award criteria, tender evaluation, standstill (Alcatel) periods, debriefing and remedies for unlawful awards (automatic suspension, set‑aside and damages). Common tools are framework agreements, dynamic purchasing systems and call‑offs. In construction, “procurement” also refers to the procurement route—such as traditional, design and build, management contracting, construction management, frameworks, PPP/PFI and alliancing—which determines risk allocation, responsibility for design, price certainty and programme. Effective procurement strategy is central to contract award defensibility, supply‑chain management and project delivery.
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View the related Checklists about Procurement

CHECKLISTS
Administrative Court judicial review: CPR Part 54 checklist on time limits, promptness and applications to extend claim forms and acknowledgements of service (England and Wales)

This Checklist sets out the principal procedural steps and considerations for parties preparing or answering a request to extend time in judicial review claims before the Administrative Court. It should be read alongside Practice Note: Judicial review time limits—extensions and urgent cases. Time limits for bringing claims and the requirement to act 'promptly' Where proceedings are started in the High Court, the claim form must be lodged promptly and, in any case, no later than three months from the date the grounds first arose, subject to the shorter periods below: challenges to planning decisions must be issued within six weeks of the date the grounds to bring the claim first arose challenges to procurement decisions under the Public Contracts Regulations 2015 must be brought within 30 days of the date the grounds to bring the claim first arose...

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CHECKLISTS
PSR 2023 Competitive Process: Transparency Checklist for Notices of Intention to Award Contracts or Conclude Framework Agreements (UK Central Digital Platform; SI 2023/1348 reg 11(10) Sch 10)

Checklist This Checklist outlines the details that must appear in a notice of intention of intention to make an award, or to finalise a framework agreement, with the Chosen Provider through the Competitive Process, intended for submission to the UK central digital platform, to satisfy the transparency requirements set and mandated by the Health Care Services (Provider Selection Regime) Regulations 2023 (PSR Regs 2023), SI 2023/1348, reg 11(10), Sch 10...

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CHECKLISTS
Provider Selection Regime 2023: Checklist for Notice of Intention to Award to an Existing Provider using Direct Award Process C (health care services), for UK central digital platform submission

This Checklist This Checklist explains the particulars that must appear in a notice to be submitted to the UK central digital platform to satisfy the applicable transparency duties imposed by the Health Care Services (Provider Selection Regime) Regulations 2023 (PSR Regs 2023), SI 2023/1348, reg 9(4), Sch 3, following the direct award made of a health care contract under Direct Award Process C...

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View the related Flowcharts about Procurement

FLOWCHARTS
Internal procurement process: worked example flowchart with documentation, evaluation, audit trail, supplier due diligence, approval limits, precedents, quotation types and value thresholds

Under the UK merger control rules the Competition and Markets Authority (CMA) may assess or review mergers already completed as well as those still anticipated, provided a ‘relevant merger situation’ arises. See Practice Note: A ‘relevant merger situation’ under UK merger rules. Several distinct conditions must be fulfilled for such a ‘relevant merger situation’ to exist, and these requirements are set out in the flowchart provided below here...

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FLOWCHARTS
Wrongful trading in liquidation and administration under the Insolvency Act 1986 (ss 214, 246ZB): conditions flowchart

Procurement process flowchart This Procurement process flowchart outlines the sequence a procurement might follow and highlights the factors to weigh and the considerations involved to maintain a transparent and appropriate procedure. It further points to the Precedents on hand to support you through the procurement steps. This Flowchart serves as a worked illustration and is not meant to be exhaustive. While organisations may adopt quite varied approaches, it offers a useful baseline or point of reference. Any contract value amounts shown here are for demonstration purposes only...

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FLOWCHARTS
Comparative tax treatment of UK residential property ownership structures - flowchart for UK-resident, UK-domiciled individuals

ARCHIVED: This flowchart is archived and no longer maintained. Procurement Act 2023 From 24 February 2025, the key provisions of the Procurement Act 2023 (PA 2023) took effect and now apply...

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View the related News about Procurement

NEWS
English Commercial Court grants anti-suit injunctions to uphold Paris-seated ICC arbitration and restrain Russian proceedings—Bayerische Landesbank v Ruschemalliance

Bayerische Landesbank and another v Ruschemalliance LLC [2024] EWHC 1822 (Comm) What are the practical implications of this case? In keeping with comparable determinations, this judgment succinctly sets out the jurisdictional thresholds and principal considerations the court applies when evaluating applications for anti‑suit injunctions. It underscores the judiciary’s practical bent and operates as a constructive illustration of inter‑court co‑ordination, projecting a clear signal where numerous contests flow from identical underlying events, even though such matters are dealt with at varying moments and tiers of the court structure. In sum, the outcome reasserts the English courts’ steadfast commitment to upholding arbitration, including in circumstances where the arbitral seat is situated in a foreign state. What was the background? In 2021, the defendant, Ruschemalliance LLC (“RCA”), a Russian entity, entered into two Engineering, Procurement and Construction agreements for the development of liquefied natural gas and gas processing plant facilities in Russia. The obligations owed by RCA’s counterparties, the German companies Linde GmbH and Renaissance Heavy Industries LLC (together,...

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NEWS
Commercial law weekly highlights—9 May 2024 (UK): ASA gambling ad ruling, UKSC damages decision, ICO fining guidance, procurement challenge dismissed, recommerce, building regs single-sex toilets, HMRC customs updates

In this issue: Advertising, marketing and sponsorship Contracts Data protection Public procurement Sale and supply of goods Supply of services International Daily and weekly news alerts New and updated content Dates for your diary Trackers Advertising, marketing and sponsorship ASA rulings— 8 May 2024. The Advertising Standards Authority (ASA) considered a complaint about a website promoting a gambling offer that did not set out key entry conditions. The complainant queried whether the advertisement misled consumers. The ASA agreed and upheld the complaint. See: LNB News 08/05/2024 29. Contracts Supreme Court clarifies law on damages and assessment of goods (Sharp Corp Ltd (Respondent) v Viterra BV (previously known as Glencore Agriculture BV) (Appellant)). In Sharp Corp Ltd v Viterra BV (previously known as Glencore Agriculture BV) [2024] UKSC 14, the Supreme Court unanimously allowed the appeal and also allowed the cross-appeal, sending the Awards back to the Appeal Board for reconsideration. Lord...

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NEWS
UK commercial law weekly update: ASA rulings, CAP/BCAP consultation, CMA super-complainant guidance, Procurement Act 2023 go-live and model contracts, HMRC customs updates, Russian sanctions CHPL

In this issue Advertising, marketing and sponsorship Consumer protection International Public Procurement Supplier management Daily and weekly news alerts New and updated content Dates for your diary Trackers Latest Q&A Advertising, marketing and sponsorship ASA rulings—26 February 2025 The Advertising Standards Authority upheld two challenges concerning an email from Maki Online Services Ltd t/a Nino Apply, which exaggerated the consequences of not renewing a Biometric Residence Permit and failed to disclose the availability of a free eVisa. See: LNB News 26/02/2025 21. CAP and BCAP launch further consultation on 'less healthy' ads rules Acting for the ASA, the Committees of Advertising Practice (CAP and BCAP) have begun a further consultation on introducing new restrictions on promoting ‘less healthy’ food and drink to children. From October 2025, these rules will bar such advertising on TV and online during set periods. Input is requested on refreshed guidance for applying the rules, following responses to...

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View the related Practice Notes about Procurement

PRACTICE NOTES
Public sector equality duty in Wales: specific duties, equality impact assessments, objectives, gender pay action plans, procurement and enforcement (Equality Act 2010 (Statutory Duties) (Wales) Regulations 2011)

The public sector equality duty (PSED) Set out in Part 11 of the Equality Act 2010 (ss 149–159), the public sector equality duty (PSED) comprises a general equality duty applying UK-wide to public bodies listed in Schedule 19 of the EqA 2010, alongside specific duties intended to support delivery of the general duty and enhance transparency. Although the general duty is identical across England, Wales and Scotland, the specific duties made under EqA 2010, s 153 vary. In Wales, listed public bodies must meet particular specific duties that sit alongside the UK-wide general duty. These specific duties bind listed Welsh bodies only. They do not extend to non-devolved public authorities operating in Wales. Under EqA 2010, s 149, the general duty requires public authorities and those exercising public functions to have 'due regard' to the need to: eliminate discrimination, harassment, victimisation, and any other behaviour prohibited by or under the EqA 2010 advance equality of opportunity between people who share a relevant protected characteristic and...

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PRACTICE NOTES
Light touch contracts under the Procurement Act 2023: scope, thresholds, notices, tendering and award, user choice, public service mutuals reservations, frameworks, modifications and remedies

STOP PRESS From 24 February 2025, the core provisions of the Procurement Act 2023 (PA 2023) take effect and apply. Competitions commencing on or after that date must proceed under PA 2023, while procurements started under the earlier regimes — the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011 — must continue to be run and overseen in line with those rules and procedures accordingly. See Practice Note: Introduction to the Procurement Act 2023—PA 2023. This material concerns the Procurement Act 2023 regime. It provides practical guidance on public procurement under the Procurement Act 2023 (PA 2023). For practical guidance on light touch contracts under the former legislation, see Practice Note: Considerations when authorities procure contracts that are not subject to the full procurement regime. Overview of the light touch public procurement regime Under PA 2023, light touch contracts (LTCs) mean contracts wholly or predominantly for the delivery of identified...

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PRACTICE NOTES
UK Transport Infrastructure Projects: Key Legal, Risk, Procurement and Planning Resources

Transport projects This Practice Note provides a concise overview of transport projects and signposts useful materials on the topic available from LexisNexis® and other external sources. Transport plays a vital role in economic and social development at regional, national and international levels... Initiatives in this field generally demand significant investment and sophisticated infrastructure, and are frequently lengthy, demanding and of notably high value. Transport projects commonly need to align local and/or national infrastructure policies and funding approaches with the commercial aims and expectations of private sector organisations involved in their delivery... Activities in the transport sector span a wide range of modes and related infrastructure, including: roads—road widening, toll roads, smart motorways, safety improvements, congestion relief rail (light and heavy)—station upgrades/enhancements, renewing and enhancing rail infrastructure, viaducts, lineside infrastructure airports and aviation (airside and landside)—terminal construction/enhancement, baggage handling Together, these areas reflect the breadth and complexity of transport projects and the need to balance public policy and funding priorities...

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View the related Precedents about Procurement

PRECEDENTS
Precedent JCT Standard Building Sub-Contract 2024: Agreement, Particulars and Amendments (Procurement Act 2023, Building Safety/HRB, BIM, Bonds, Warranties) — England and Wales

Agreement concerning [ insert brief details of the works/project ] at [ insert address of works ] (incorporating, among other things, the JCT Standard Building Sub-Contract Agreement 2024 (SBCSub/A 2024) and the JCT Standard Building Sub-Contract Conditions 2024 (SBCSub/C 2024), each as amended and supplemented as set out in this Agreement and in the Schedules to it). This Agreement is dated the [ insert number ] day of [ insert month ] 20[ insert year ] Parties [ insert name of the Contractor ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Contractor ] (“the Contractor”) [ insert name of the Sub-Contractor ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Sub-Contractor ] (“the Sub-Contractor”) Now it is agreed that: 1 Interpretation In this Agreement, words and expressions carry the meanings respectively attributed to them in the JCT SBCSub/A 2024 and...

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PRECEDENTS
Contracting authority partner access clause—direct contracting with supplier, buyer authorisation, incorporation of terms, procurement compliance, reporting and rebate

Definitions Partner(s) • refers to EITHER: [ the following: [ insert names of partners ] OR those [ insert type of group, eg councils or academies in a geographical area or a type of public body ], as described in the Find a Tender service (FTS) Notice. ] The expression Partner(s) shall be understood accordingly. Partner Contract • denotes any arrangement, whatever its form, between the Supplier and the Partner(s) that stems from this Agreement. 1 Use of Agreement by Partner(s) The Supplier accepts and agrees that the Buyer has entered into this Agreement for its own benefit and for the benefit of the Partner(s). Beyond supplying the [ Goods OR Services OR Works ] to the Buyer under this Agreement, the Supplier shall also supply such [ Goods OR Services OR Works ] to any Partner that makes a request, PROVIDED THAT doing so shall not disrupt, compromise, or diminish the level of service the Supplier provides to...

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PRECEDENTS
Standstill notification of contract award to successful tenderer: template under Regulation 87 PCR 2015 (pre-PA 2023) — England, Wales and Northern Ireland [Archived]

ARCHIVED: This Precedent has been archived and is no longer maintained. STOP PRESS: With effect from 24 February 2025, the principal provisions of the Procurement Act 2023 (PA 2023) are in force. Any procurements launched on or after that date must proceed under PA 2023, while those started under the earlier legislation (the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011) must continue to be run and administered under that legislation. See Practice Note: Introduction to the Procurement Act 2023—PA 2023...

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View the related Q&As about Procurement

Q&As
PCR 2015: Best practice for contracting authorities on making procurement documents available electronically

A well-known problem amongst procurement professionals A widely recognised headache for procurement practitioners arises from the duty in regulation 53 of the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102 (PCR 2015, SI 2015/102, reg 53). It requires the ‘procurement documents’ to be accessible at the time a public contract is advertised in the Official Journal of the European Union (the Official Journal, or OJEU). In essence, contracting authorities must use the internet to provide unrestricted, complete and immediate access, at no cost, to those documents from the day a notice, issued under regulation 51, appears in the Official Journal, or from the day an invitation to confirm interest is dispatched. The issue most often raised, particularly for public procurements run under the restricted procedure (and comparable routes that involve a pre-qualification phase ahead of the award stage), is whether the invitation to tender and the specification must already be available when the contract notice is published in the OJEU. Timing this disclosure often proves challenging for contracting authorities...

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Q&As
Limits on contracting authority framework management charges

Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, reg 33(2) defines a framework agreement as: Regulation 33(2) of the Public Contracts Regulations 2015 (SI 2015/102) describes a framework agreement as an arrangement between one or more contracting authorities and one or more economic operators, intended to set the terms that will govern contracts awarded over a specified period, notably concerning price and, where appropriate, the quantities anticipated. The Crown Commercial Service (CCS) guidance interprets a framework agreement as a broad term for arrangements with providers that lay down the terms and conditions under which agreements for specific purchases—referred to as call-off contracts—can be put in place throughout the life of the agreement...

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Q&As
Public contract: supplier ceases trading - award to another original bidder without re-tendering?

Assumptions have been made that this is an above-threshold procurement, conducted via a fully compliant public purchasing process in line with the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, and that standstill notices were issued under PCR 2015, SI 2015/102, reg 86, to the winning tenderer and all unsuccessful tenderers, across the procurement process. We further assume the original contractor stopped trading (without entering insolvency) at any stage. Consequently, we have not examined the safe harbours that allow for modifying or substituting a contractor under PCR 2015, SI 2015/102, reg 72(1)(d) for this analysis. Where a public contract has collapsed because the supplier has stopped trading (with no sign of insolvency), and the contracting authority is contemplating appointing a replacement, several points require attention by decision-makers herein. A few illustrations are outlined below...

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