Public Contracts Regulations 2015 - Regulation 73
On 26 February 2015, the Public Contracts Regulations 2015 came into force, transposing into UK national legislation European Union Directive 2014/24/EU. Amongst a raft of changes, one aspect that will be of particular importance to the public and private sectors alike is Regulation 73. This places an obligation on contracting authorities to provide arrangements to govern the sometimes uncomfortable relationship between procurement and contract law.
Regulation 73 sets out three scenarios in which the contracting authority must be able to terminate the contract of an economic operator:
- The contract has been subject to a substantial modification which would have required a new procurement procedure.
- Grounds for exclusion of the economic operator (as defined by the Directive) become applicable.
- The contract is declared ineffective by a Court.
This is not a change in the law per se as various jurisprudence has created this duty for contracting authorities to terminate when the circumstances outlined above occurred. What Regulation 73 provides for is an obligation for contracting authorities to codify the right to terminate in their contracts. However, the mechanics of how this is to be achieved – notices, payment for loss and expense etc. – is at the discretion of contracting authorities.
Further, and in a ‘belt-and-braces’ approach, Regulation 73 states that where a contracting authority has not included provisions for termination on one or more of the three grounds, such a right may be implied.
Whilst an understanding of Regulation 73 is of crucial importance to public sector bodies, it is also key to contractors and subcontractors alike as they may be on the 'receiving end'.
--Quigg Golden Associate Simon McCormick has written an article on this aspect of the new legislation which you can view by clicking on this link.
Featured articles and news
Net zero electricity grids BSRIA guide NZG 5/2024
Outlining the changes needed to transition to net zero.
CIOB Global Student Challenge 2024
Universitas Indonesia wins for second year running.
New project and cultural district described in detail.
The nature of EPCs, crticism and inaccuracies.
History, issues and redesign.
From waste recycling to energy performance the hierchy.
An introduction to WERCS and WEEE responsibilities
Dealing with 2 million tonnes of waste equipment a year.
Global BACS Market: analytics and optimisation
A BSRIA glance at building automation and control systems.
What it is and how to use it.
Types of insulating plaster by binder and insulant.
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.