Tender thresholds

The estimated value of a contract will determine the quotation/tender procedure the council follows, including:

  • how many quotations/tenders we need to invite
  • how we advertise
  • what checks we make.

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?
Below £5000 Single verbal or written quotation, or use suitable framework agreement No
£5000 to £24,999 Three written quotations, or use suitable framework agreement No
£25,000 to £74,999 Three written quotations, or use suitable framework agreement No
Works Contracts
£75,000 to £5,372,609 (inc VAT)

Supplies and Services Contracts
£75,000 to £214,904 (inc VAT)
Use suitable framework agreement or 'open tender' Required
Thresholds effective from 1st January 2024:

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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