Public Contract Code Template for England and Wales

A Public Contract Code sets out the rules and standards for how government bodies and public organizations must handle their purchasing and procurement activities. In England and Wales, it combines key legislation like the Public Contracts Regulations 2015 with specific requirements for fair competition, transparency, and value for money.

These rules cover everything from how contracts must be advertised and awarded to ensuring equal treatment of suppliers. Local councils, NHS trusts, and other public bodies use this framework daily to manage their spending and maintain public trust. It helps prevent favoritism and ensures taxpayer money is spent properly through competitive bidding processes.

Use the Public Contract Code when your organization needs to purchase goods or services using public funds. This applies to all UK public sector bodies, from local councils planning construction projects to NHS trusts buying medical equipment. The code becomes essential as soon as your procurement value exceeds £138,760 for central government or £213,477 for other public bodies.

The code guides you through critical moments: advertising tenders, evaluating bids, awarding contracts, and managing supplier relationships. It's particularly important when running complex procurement processes, dealing with multiple bidders, or handling high-value contracts that require strict compliance with transparency and competition rules.

• Basic Code: Covers standard procurement procedures for routine purchases and contracts under the threshold values. Used by smaller public bodies and local authorities.
• Complex Framework Code: Details advanced procurement rules for major projects, framework agreements, and multi-supplier arrangements. Essential for central government departments.
• Social Value Code: Incorporates additional requirements for environmental and social benefits in public contracts, as required by the Public Services Act.
• Emergency Procurement Code: Outlines modified procedures for urgent public contracts during crises or emergencies, with streamlined but compliant processes.

• Public Sector Bodies: Must follow the Public Contract Code when spending taxpayer money, including local councils, NHS trusts, and government departments.
• Procurement Officers: Lead the implementation of the code's requirements, managing tender processes and supplier relationships.
• Legal Teams: Ensure compliance with the code's regulations and help resolve contract disputes.
• Private Suppliers: Follow bidding procedures and requirements when competing for public contracts.
• Auditors: Monitor and verify compliance with the code's procurement rules and spending guidelines.

• Value Assessment: Calculate the total contract value to determine which procurement thresholds and rules apply.
• Procurement Type: Identify if it's goods, services, or works to apply correct procedures and timelines.
• Market Research: Gather data on potential suppliers and market prices to set realistic requirements.
• Social Value Goals: Define environmental and community benefits you want suppliers to deliver.
• Internal Approvals: Map out your organization's approval chain and decision-making process.
• Documentation System: Set up a robust system to record all procurement decisions and communications.

• Scope Definition: Clear statement of procurement objectives and covered activities under the code.
• Threshold Values: Specific financial limits that trigger different procurement procedures.
• Selection Criteria: Transparent requirements for evaluating and selecting suppliers.
• Tendering Procedures: Detailed processes for open, restricted, and negotiated procurement routes.
• Contract Award Rules: Standards for fair competition and impartial decision-making.
• Compliance Framework: Requirements for record-keeping, transparency, and audit trails.
• Dispute Resolution: Procedures for handling procurement challenges and appeals.

While a Public Contract Code and a Code of Conduct might seem similar, they serve distinctly different purposes in public sector governance. The Public Contract Code specifically regulates procurement and spending of public funds, while a Code of Conduct sets behavioral and ethical standards for an organization's members.

• Scope and Application: Public Contract Code focuses on purchasing procedures and supplier relationships; Code of Conduct covers professional behavior and ethical guidelines.
• Legal Framework: Public Contract Code directly implements EU-derived procurement law and regulations; Code of Conduct typically reflects internal organizational policies.
• Enforcement Mechanism: Public Contract Code violations can lead to procurement challenges and legal proceedings; Code of Conduct breaches usually result in internal disciplinary measures.
• Target Audience: Public Contract Code governs external relationships with suppliers; Code of Conduct primarily addresses internal stakeholder behavior.