The estimated value of a contract will determine the quotation/tender procedure the council follows, including:
This is set out in the table below.
For low value contracts the council does not need to seek tenders and can award a contract on the basis of value for money.
For larger value contracts, the council must be satisfied with the competence of the selected contractor, and will carry out an evaluation of their financial standing.
| Threshold
Contract Value |
Requirement
Minimum number of quotations/tenderers |
Do we advertise the contract? |
|---|---|---|
| Low-value contracts (Band 1)
Below £5000 |
Obtain a minimum single written quotation, or use a suitable framework agreement | No |
| Medium-value contracts (Band 2)
£5000 to £29,999 |
Three written quotations, or use suitable framework agreement | No |
| Medium-value contracts (Band 3)
£30,000 to £99,999 |
Three written quotations, or use suitable framework agreement | No |
| High-value contracts for the supply of goods and services (Band 4)
£100,000 or above but below relevant UK Procurement Threshold |
Use suitable framework agreement or 'open tender' | Required |
| High-value contracts for the supply of works (Band 5)
£100,000 or above but below relevant UK Procurement Threshold |
Use suitable framework agreement or 'open tender' | Required |
| Thresholds effective from 1st January 2024:
Three written quotations, or use suitable framework agreement Works Contracts - £5,372,609 (inc VAT) Supplies Contracts - £214,904 (inc VAT) Services Contracts - £214,904 (inc VAT) Light Touch Contracts - £663,540 (inc VAT) |
As per UK procedures | As per UK procedures |
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