Works Threshold

The financial threshold above which public works contracts must follow full EU/UK procurement procedures, currently £4,733,252 for most contracting authorities.

Current Threshold Values

The Works Threshold sets the financial limit above which public sector bodies must follow full statutory procurement procedures for construction and engineering contracts. As of 1 January 2024, the threshold stands at £4,733,252 (excluding VAT) for most contracting authorities, including central government, local authorities, and NHS bodies.

For utilities and certain specialised sectors, different threshold values may apply under the specific regulations governing those areas.

Legal Requirements Above Threshold

Once a works contract's estimated value exceeds this threshold, contracting authorities must:

• Publish contract notices in Find a Tender (the UK's official procurement portal)
• Follow prescribed timescales for tender submissions and standstill periods
• Apply specific selection and award criteria
• Provide detailed feedback to unsuccessful bidders
• Allow for statutory challenge periods

Below-Threshold Flexibility

Works contracts below the threshold still require competitive procurement under the Public Contracts Regulations 2015, but authorities have greater flexibility in their approach. They must still achieve value for money and treat suppliers fairly, but can use simplified procedures without the full regulatory burden.

Contract Aggregation Rules

The threshold applies to the total estimated contract value over its entire duration, including any options or extensions. Where multiple related works contracts could be considered a single procurement, authorities must aggregate their values to determine if the threshold is exceeded.

Regular Review

The UK government reviews and updates procurement thresholds every two years, typically in January, to reflect economic conditions and maintain alignment with trade agreement obligations.