The (current and) new thresholds (other than for central government, utilities and concession contracts) are:

 

 

 

 

 

Current threshold

 

 

New threshold from 1 January 2018

 

 

 

 

Works

 

£4,104,394

 

 

£4,551,413

 

 

 

Services / supplies

 

£164,176

 

 

£181,302

 

 

 

“Light touch regime” services*

 

£589,148

 

 

£615,278

 

 

 

Small lots** for works

 

£785,530

 

 

£820,370

 

 

 

Small lots** for services and supplies

 

£62,842

 

 

£65,630

 

 

 

 

These will apply to all contracts let and procurements that begin after 1 January 2018.

* The Light Touch Regime applies to “social and other specific services” including health, education, catering, postal services and legal services.

** Where a contracting authority has a ‘single requirement’ for works, services or supplies, up to 20% of that requirement may be let as a separate contract, or as a number of contracts as long as each contract has a value less than the applicable small lots threshold.

Further Information

If you would like advice or have any questions about the points raised in this article, please get in touch with  Andrew Millross.

Contract management pitfalls – payment
Contract management pitfalls – payment

In the second part of our series on contract management pitfalls, we look at the risks and opportunities presented by payment mechanisms in construction contracts.