The Procurement Act 2023: Revolutionising Dispute Resolution in Commercial Contracts

24 February 2025

Key changes in the Procurement Act 2023 for Commercial Contracts

Procurement Act 2023 - Commercial Dispute Resolution Contract. Tregaskis Commercial Mediator

The Procurement Act 2023 has brought radical changes in public procurement laws after over three decades. It seeks to enhance transparency in contract awards and contractor performance and simplifies accessibility to public sector supply chains for SMEs.


Key revisions involve mandatory 30-day payment terms and a shift to awards based on most advantageous tender (MAT), allowing factors like social value and environmental performance to influence tender decisions.


Commercial disagreements often arise from the complications derived from alterations during procurement. The new Procurement Act 2023 provides a framework that can alleviate these disputes. The ability to modify procurement processes midstream, coupled with a clear obligation to communicate these changes to all suppliers, shines a light on the process, reducing the scope for disputes. The emphasis on providing suppliers with sufficient time to prepare responses to modifications also aids in maintaining a level playing field, thereby further minimising potential disagreements.


Read more: https://www.constructionenquirer.com/2025/02/24/sweeping-changes-to-public-procurement-come-into-force/


See the official guidance: Procurement Act 2023 guidance documents - Procure phase - GOV.UK