16 February 2025

Supplying to the utilities sector? Here’s what the Procurement Act means for your business. The Procurement Act 2023 streamlines utilities contracts, creating a fairer and more efficient marketplace for suppliers in energy, water, and transportation.

•    Expanded Flexibility: Direct awards allowed in specific circumstances, such as emergencies or monopoly situations.

•    Extended Framework Agreements: Accommodates the long-term nature of utilities projects.

•    Exemptions for Affiliated Contracts: Simplifies procurement for in-house agreements or resale scenarios.

The utilities sector often involves complex, large-scale projects that require tailored procurement rules. The Procurement Act 2023 introduces reforms to address these challenges, ensuring that suppliers can operate within a framework that balances efficiency and accountability. 

Key updates include provisions for direct awards in critical situations, such as supply continuity emergencies, and extended framework terms to support long-term projects. Additionally, exemptions for contracts intended for resale or involving affiliated entities reduce administrative overhead. 

For suppliers, these changes mean a streamlined process that rewards expertise and reliability, while still maintaining competitive standards. By understanding these reforms, businesses in the utilities sector can better position themselves to secure public contracts and contribute to essential infrastructure projects.

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