Procurement Act 2023 (Commencement No. 4) Regulations 2025 – Key requirements and practical guidance

The Procurement Act 2023 (Commencement No. 4) Regulations 2025 (SI 2025/1316) bring into force critical provisions of the Act in a phased manner, ensuring contracting authorities have time to adapt to new compliance obligations.

Commencement timeline

• From 1 January 2026:
  
  • Section 69 – Payment Compliance Notices
  • Section 71 – Contract Performance Assessment

• From 1 April 2026:
  • Section 69 – for Welsh-regulated procurements
  • Section 70 – Information about Payments

Core obligations

1. Payment compliance notices (s.69) 
   Publish notices confirming compliance with prompt payment requirements, including subcontractor payments
2. Information about payments (s.70) 
   For contracts over £30,000, report payment data to enhance transparency
3. Contract performance notices (s.71) 
   Publish performance assessments for contracts exceeding £5 million, including KPIs and poor performance indicators

Practical tips for contracting authorities

• Update templates and processes
  • Incorporate new notice requirements into standard procurement documentation
  • Add termination clauses referencing exclusion grounds and the debarment list under section 78

• Prepare for transparency obligations
  • Ensure systems can publish notices on the Central Digital Platform
  • Establish internal workflows for timely reporting of payment and performance data

• Train procurement teams
  • Provide training on new statutory duties, including how to assess supplier performance and manage KPIs

• Review existing contracts
  • Identify contracts that will require performance notices and payment reporting
  • Consider renegotiating terms to align with new compliance requirements

• Monitor transitional provisions
  • Procurements commenced before 24 February 2025 remain under PCR 2015 until completion. Maintain dual compliance where necessary

• Engage with suppliers early
  • Communicate upcoming obligations to suppliers to avoid disputes and ensure readiness for reporting requirements

Why this matters

The phased implementation under Commencement No. 4 ensures a smooth transition to the new procurement regime, but authorities must act now to avoid non-compliance risks and reputational damage.