Reg. 72 (PCR 2015)

Modification of contracts during their term

In: Manage > Contract modifications

Overview

This regulation sets out the grounds (or ‘safe harbours’) that enable contracting authorities to modify PCR 2015-regulated contracts and framework agreements without conducting a new procurement procedure.

The permitted modification grounds set out various conditions that must be satisfied in order to rely on the relevant ‘safe harbour’. Permitted modification grounds include certain circumstances where:

a) modifications are set out in the initial procurement documents in clear, precise and unequivocal review clauses

b) additional goods, works and services up to 50% of the original contract value have become necessary and a change of supplier cannot be made for economic or technical reasons

c) changes have been brought about by circumstances which the contracting authority could not have foreseen, and any increase in price does not exceed 50% of the original contract value

d) a new contractor replaces the one to which the contracting authority initially awarded the contract

e) the modification, irrespective of value, is non-substantial

f) the value of the modification is below certain ‘de minimis’ thresholds (applied cumulatively to successive changes.

The conditions relating to modification grounds (b) and (c), above, also include a requirement for the contracting authority to publish a modification notice on Find a Tender to advertise the contract change.

Objective at this commercial stage

The modification of a PCR-regulated contract or framework agreement triggers a requirement to conduct a new procurement process, other than in circumstances where one or more of the permitted modification grounds apply.

Key considerations at this commercial stage

Contracting authorities should:

  • ensure that contract modifications satisfy all relevant conditions of the permitted modification ground relied upon, including value thresholds where applicable
  • where required by the permitted modification ground, ensure that a modification notice is published on Find a Tender to advertise the contract change.

See also in the Procurement Act 2023:

  • Section 74: Modifying a public contract
  • Section 75: Contract change notices
  • Section 76: Voluntary standstill period on the modification of contracts
  • Section 77: Publication of modifications
  • Schedule 8: Permitted contract modifications

Additional support and guidance

Make sure you:

  • read the regulation
  • seek legal and commercial advice in the context of specific procurements