Agenda item

To introduce a new updated version of the Contract Procedure Rules (report of the Assistant Director – Governance (Monitoring Officer) enclosed).

The Leader introduced the proposed amendments to the Contract Procedure Rules (CPRs), which were brought forward for approval, including the delegation to officers as highlighted in Appendix 2.

Members had previously reviewed the revised set of CPRs, and any comments were considered prior to the final version being circulated to all Council for full approval.

By way of background, the Leader advised that the purpose of these amendments was twofold. Firstly, public procurement legislation had changed following the implementation of the Procurement Act 2023, which had been in place since February 2025. Whilst the current CPRs were compliant with this legislation, the proposed amendments included additions and revisions to further align the CPRs with the Procurement Act 2023.

Secondly, the CPRs had last been updated three years ago, and therefore were due for review. Appendix 3 highlighted the key changes.

The Leader noted that significant work had been undertaken to review and update the rules, and expressed appreciation to officers for their diligence in managing the extensive changes required. The amendments included provisions relating to frameworks and dynamic markets, in line with the Procurement Act 2023, to ensure officers complied with the new legislation.

In relation to thresholds, the Leader noted that the main change was the increase from the current range of £40,000–£85,000 to £50,000–£100,000. He added that importantly, the requirement for at least five written quotations was proposed to be amended, as sourcing five quotations could be challenging in certain industries. Feedback from suppliers indicated that the current requirement could discourage participation, as they perceived a low chance of success.

The Leader advised that further additions were made regarding contract management and monitoring, ensuring that operational contract managers regularly reviewed contract performance and met with suppliers as required under the terms of the contract. He also confirmed that a named contract manager would be recorded on the contracts register.

Concern was expressed regarding the inclusion of VAT in the figures presented, noting that this was not standard practice and could lead to inaccuracies if VAT rates changed in the future. The Member queried why VAT needed to be included and suggested that it should be removed.

Officers explained that the inclusion of VAT was a statutory requirement under the relevant legislation. They confirmed that thresholds would continue to be calculated exclusive of VAT, as outlined in the accompanying table, but acknowledged that minor adjustments might be necessary to ensure consistency throughout the document.

The Member highlighted that some figures within the text appeared to be exclusive of VAT, while others were inclusive, which caused confusion.

Officers advised that Section 1.5 of the Contract Procedure Rules explained that all figures were inclusive of VAT, except for the table at 13.3.

Members stated that they were extremely satisfied with the work undertaken by the Procurement Team, particularly in relation to improved contract management. They noted that the team had delivered strong outcomes for the Council and expressed full support for the proposed increase in procurement thresholds, citing the challenges of obtaining multiple quotes for specialist areas.

Another Member emphasised the importance of providing opportunities for local businesses to participate in procurement processes, noting that this had been a longstanding priority.

Further comments highlighted the need for declarations of interest to cover all parties involved, including councillors, officers, and the Procurement Team.

Members acknowledged the difficulties in securing quotes for specialist works within tight deadlines, particularly when external funding imposed strict spending requirements.

Overall, Members agreed that the report was positive and commended the Procurement Team for managing significant pressures effectively.

DECISION:

1.     That Cabinet recommends the draft revised Contract Procedure Rules at Appendix 1a to this report to be approved at Council.

2.     That Cabinet approves the delegations to Officers that sets out the authorisation for decision making in relation to Contract Procedure Rules at Appendix 2 to this report. This approval will be subject to a Council decision to amend the Contract Procedure Rules.

(Other Options Considered)

·           To do nothing – which would result in the retention of the existing Contract Procedure Rules. This would not be deemed best practice as the Contract Procedure Rules have not been reviewed or updated for 3 years.

Reasons for Decisions:

·         To ensure that the Council has robust, up-to-date Contract Procedure Rules that provide clarity to officers, members, and potential suppliers.

·         To ensure a clear and consistent approach in the award of contracts and safeguard the public’s trust and confidence and promote public accountability and procurement practice.

·         To help avoid governance failures in the Council’s procurement activity.