New Contract Performance Transparency requirements from 1 January 2026
From 1 January 2026, contracting authorities will be required to publish Contract Performance Notices under section 71 of the Procurement Act 2023. This forms part of the wider transparency regime introduced through the Act and implemented via the Procurement Act 2023 (Commencement No. 4) Regulations 2025.
These new requirements mean that supplier performance against contractual Key Performance Indicators (KPIs) will become publicly accessible, significantly increasing the visibility of underperformance and breaches in public contracts.
Key requirements
1. Annual and Termination‑Stage Assessments
Where KPIs have been set under section 52(1), contracting authorities must:
- Carry out a performance assessment at least annually; and
- Conduct a further assessment whenever a contract is terminated.
2. Publication Duty
Following each assessment, authorities must publish a Contract Performance Notice on the Government’s Central Digital Platform. The notice will make visible:
- Performance against KPIs;
- Material failures or underperformance;
- Any identified breach of contract (now also required to be published).
Why this matters
The publication of performance results marks a step‑change in public sector transparency. Poor performance will shortly be a matter of public record, meaning that:
- Suppliers may face reputational risk, which could affect future competitive opportunities.
- Authorities may gain greater leverage in negotiations, using transparency as a tool to drive improved performance or renegotiate contractual terms.
- Performance information could influence decisions around exclusion grounds or risk‑based assessments in future procurements.
This heightened visibility makes robust contract management essential.
Recommended steps
Both contracting authorities and suppliers should now prepare for these obligations by:
For Authorities
- Reviewing existing KPIs to ensure they are clear, measurable and aligned with contract objectives.
- Strengthening internal processes for monitoring and recording performance.
- Establishing workflows for director‑level approval and publication of notices on the Central Digital Platform.
- Identifying contracts that exceed relevant thresholds and will require formal assessments.
For Suppliers
- Reviewing contract KPIs and ensuring performance‑evidence systems are in place.
- Understanding the reputational implications of published performance data.
- Engaging early with authorities to mitigate any performance concerns ahead of publication.
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The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.
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We are proud to have been named Law Firm of the Year at the prestigious Legal Business Awards 2024!
Legal Business is the market-leading monthly magazine for the UK and global legal market. Its readership spans the UK, Europe, Asia and the US, and the awards celebrate the very best in the legal profession.
This win is absolute recognition for all the hard work across the firm over the past year.
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