Valuation of a contract


last updated: 30th June 2020

A proposed tender will fall under the legislation if its estimated value (before the addition of VAT) is greater than the prescribed thresholds.

Thresholds for 1 January 2020 to 31 December 2021 applicable to sub central contracting authorities such as FE colleges, schools and academies:







Social & Other Specific Services*




Concession contract
(works or services)


* The services that fall into this category are listed in Schedule 3 of The Public Contracts Regulations 2015.

The legislation provides guidance on how to estimate the value of the proposed tender.  If after calculation, the value of the contract exceeds the appropriate threshold, it will fall within the scope of the legislation.  The method of calculation used depends upon the type of procurement to be undertaken:

When determining the best procurement strategy aggregation should be considered with a view to maximising the institution's procurement power even where to do so would bring a proposed procurement within the remit of this legislation.

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