Below-threshold procurement

Below-threshold procurement covers every public contract worth less than the amounts that trigger the full regime. The buyer designs its own process, proportionate to the value and the risk, and this is where most SMEs win their first public work.

How it works

In England, Wales and Northern Ireland the Procurement Act 2023 applies its full rules above £135,018 including VAT for central government goods and services, £207,720 for local authorities and other sub-central bodies, and £5,193,000 for works (verified 2026-09-05). Below those figures, Part 6 of the Act imposes a lighter regime on what it calls notifiable below-threshold contracts: from £12,000 including VAT for central government, including NHS trusts, and £30,000 for everyone else, a buyer that advertises the opportunity must first publish a below-threshold tender notice on the central digital platform, which appears on Find a Tender, followed by a contract details notice after the contract is entered into. A contract details notice is also required for a notifiable contract awarded without prior advertisement. Below those figures it can simply seek quotes, subject to its own standing orders and to the duty to have regard to the barriers SMEs face.

Scotland works differently: a regulated procurement under the Procurement Reform (Scotland) Act 2014 starts at £50,000 for goods and services and £2,000,000 for works, and must be advertised on Public Contracts Scotland; below that, buyers commonly use the Quick Quote tool. In Ireland, contracts are advertised on eTenders once they reach €50,000 excluding VAT for goods and services or €200,000 for works, the national thresholds set by the Office of Government Procurement's Circular 05/2023, and smaller purchases are made on a small number of quotations.

Within these limits the buyer sets the timetable, the documents and the criteria, and may negotiate if it says so up front. Part 6 does not impose a mandatory standstill period. Its notice duties still apply to notifiable contracts.

What it means for a bidder

Below-threshold work is plentiful, quick and often won by whoever responds well rather than by the biggest firm. Deadlines can be two or three weeks, sometimes less. Buyers use short questionnaires and accept a brief quality submission, and a good local track record counts.

For an SME the strategy is to answer fast and completely, price realistically from the outset and prepare arguments in case there is negotiation. Because these notices are scattered across Find a Tender, Public Contracts Scotland, Sell2Wales, eTendersNI, eTenders and dozens of council portals, monitoring has to cover the portals, not just the national site.

Example

A town council wants a new website with two years of hosting, budgeted at £45,000 including VAT. That is above the £30,000 notification level and far below the threshold, so the council publishes a below-threshold tender notice on the central digital platform, sends the brief to firms that respond, allows three weeks and interviews the top two. A four-person agency in the county wins.

Frequently asked questions

Can a below-threshold contract be negotiated?

Yes, if the buyer said so in its documents. Many simply take best and final offers from a shortlist.

How long do I get to respond?

There is no statutory minimum below the threshold. In practice expect two to four weeks, and less for small quotations.

Is a below-threshold contract published on Find a Tender?

Yes. Find a Tender publishes notifiable below-threshold notices under the Procurement Act as well as above-threshold notices. Check the relevant devolved portal too; Irish opportunities are published on eTenders.

Related terms

• Procurement thresholds
• Above-threshold procedures
• Negotiation
• Find a Tender
• Public contract

Part 6 has exceptions, including schools, utilities and concessions, and generally does not apply to transferred Northern Ireland authorities. Check the Cabinet Office guidance on below-threshold contracts for the applicable scope and notice duties (checked 9 September 2026).