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Procurement Act 2023
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This version of this provision is prospective.
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Changes to legislation:
Procurement Act 2023, Section 74 is up to date with all changes known to be in force on or before 23 February 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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Changes and effects yet to be applied to Section 74:
- Act excluded by S.I. 2024/692 reg. 43
- Act excluded by S.I. 2025/99 reg. 34
- s. 74 coming into force by S.I. 2024/716 Sch.
- s. 115A inserted by S.I. 2024/692 reg. 47(3)
- Sch. 9A inserted by S.I. 2024/692 reg. 47(4)
Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
- Act excluded by S.I. 2024/692 reg. 43
- Act excluded by S.I. 2025/99 reg. 34
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
- s. 115A inserted by S.I. 2024/692 reg. 47(3)
- Sch. 9A inserted by S.I. 2024/692 reg. 47(4)
Prospective
74Modifying a public contractU.K.
This section has no associated Explanatory Notes
(1)A contracting authority may modify a public contract or a contract that, as a result of the modification, will become a public contract (a “convertible contract”) if the modification—
(a)is a permitted modification under Schedule 8 (permitted modifications),
(b)is not a substantial modification, or
(c)is a below-threshold modification.
(2)A contracting authority may also modify a public contract or a convertible contract if the contract is a light touch contract.
(3)A “substantial modification” is a modification which would—
(a)increase or decrease the term of the contract by more than 10 per cent of the maximum term provided for on award,
(b)materially change the scope of the contract, or
(c)materially change the economic balance of the contract in favour of the supplier.
(4)A modification is a “below-threshold modification” if—
(a)the modification would not itself increase or decrease the estimated value of the contract by more than—
(i)in the case of a contract for goods or services, 10 per cent;
(ii)in the case of a contract for works, 15 per cent,
(b)the aggregated value of below-threshold modifications would be less than the threshold amount for the type of contract,
(c)the modification would not materially change the scope of the contract, and
(d)the modification is not within subsection (1)(a) or (b).
(5)In this section, a reference to a modification changing the scope of a contract is a reference to a modification providing for the supply of goods, services or works of a kind not already provided for in the contract.
(6)For the purposes of subsection (4), the “aggregated value of below-threshold modifications” is the amount of the estimated value of the contract after modification that is attributable to below-threshold modifications.
(7)Subsection (8) applies if, on modifying a public contract under this section, a contracting authority considers that—
(a)the modification could reasonably have been made together with another modification made to the contract under this section, and
(b)that single modification would not have been permitted under subsection (1).
(8)The modification is to be treated as not within subsection (1).
(9)Except as provided for in paragraph 9 of Schedule 8 (modification permitted on corporate restructuring), a contracting authority may not modify a public contract so as to change the supplier.
(10)Part 3 does not apply in relation to a contract to modify a contract where the modification is made in accordance with this section.
Commencement Information
I1S. 74 not in force at Royal Assent, see s. 127(2)
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