What the Procurement Act 2023 changed for small suppliers
Last reviewed 25 October 2026
The Procurement Act 2023 replaced the old public procurement regulations on 24 February 2025. Procurements that started before then still follow the old rules until they finish. For a small building or maintenance firm, these are the changes that matter.
One central platform
Find a Tender is now the government's central digital platform. New procurements are published there, above and below the high-value thresholds, and suppliers register their core company details there once instead of repeating them in every bid. Registration is free. Buyers increasingly need your registration, and the unique identifier it gives you, before they award a contract, so register before you bid.
Simpler procedures
Most competitive tenders now use one of two procedures:
- the open procedure: a single stage where any supplier can submit a tender. It's common for straightforward works and maintenance contracts;
- the competitive flexible procedure: the buyer designs the stages, for example a shortlisting stage followed by tenders, negotiation or a site visit. The notice and documents explain the steps.
30-day payment terms
Public contracts are treated as including a term that undisputed invoices are paid within 30 days. The same 30-day term applies down the supply chain to subcontracts that help deliver a public contract, which matters if you work for a main contractor.
More attention to small firms
Buyers must consider the barriers small and medium-sized businesses face and whether they can remove them, for example by splitting work into lots or keeping requirements proportionate. Notices say whether the buyer thinks a contract is suitable for SMEs.
Clear thresholds for advertising smaller contracts
A tender notice must be published for contracts of £12,000 or more (including VAT) from central government, or £30,000 or more from other public bodies such as councils, if the buyer advertises the contract at all.
Official detail: GOV.UK's short guide for suppliers.
General information for small businesses, not legal advice. Always check the official notice and the buyer's documents for the rules that apply to a particular contract.
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