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Contract Thresholds

EU Thresholds

The public procurement rules vary depending on the type and value of the contract advertised. When contracts are above the EU contract threshold values (known as ”EU-regulated procurements”) the relevant Regulations apply. EU-regulated procurements must be advertised in the Official Journal of the European Union (OJEU) - although they are also advertised on Public Contracts Scotland.

The threshold is different, depending on which public body is advertising the contract and what they are buying - see the EU threshold values which are updated every two years.

Procurement Reform (Scotland) Act 2014 Thresholds

For the purposes of the Procurement Reform (Scotland) Act 2014 the contract threshold is £50,000 for goods and services contracts and £2 million for works contracts (known as “regulated procurements”).

All regulated procurements must advertised on the Public Contracts Scotland.

Non-regulated procurements

Contracts which are worth less than these amounts (known as “non-regulated procurements”) are subject to fewer rules.

In practice, public bodies set up their own internal procedures which will determine how the procurement process is handled. These procedures specify how that public body will advertise and award contracts of different value and complexity. Typically these procedures will depend on the size of the public body and its overall level of spend (for example, a purchase of £40,000 is much more significant to a small public body with an annual spend of £1 million, than to one with an annual spend of over £300 million).

Organisations may post their own advertising thresholds on their Public Contracts Scotland profile page.

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