Below-threshold contracts are contracts with public buyers worth less than the threshold for their type, and the Procurement Act 2023 gives them a lighter set of rules in Part 6 (sections 84 to 88).
The rules cover England, Wales and Northern Ireland, with differences set out below. Devolved Scottish authorities are excluded from the Act, with limited exceptions (section 2(5)).
This guide explains what the rules mean when you are the supplier: when a notice appears, why there is no shortlisting stage, and what the 30-day payment term gives you. It is part of our guide on how to win public sector contracts.
Where the threshold sits in 2026
Whether a contract is below the threshold depends on its type and on who is buying. The figures come from Schedule 1 and the thresholds guidance (paras 9, 12).
| Contract type | Threshold |
|---|---|
| Goods and services, central government authority | £135,018 |
| Goods and services, other authorities | £207,720 |
| Works | £5,193,000 |
| Light touch (other light touch contracts) | £663,540 |
The goods, services and works figures apply from 1 January 2026. The light-touch figure isn’t part of the two-yearly revision (thresholds guidance paras 11–12).
NHS trusts and NHS foundation trusts count as central government authorities (Schedule 2 of the Procurement Regulations 2024; below-threshold guidance para 10), so the central government figures apply to them. Below these figures a contract is a below-threshold contract (guidance paras 1–3). See how the thresholds affect where notices go.
Which below-threshold contracts the lighter rules cover
Part 6 applies to a regulated below-threshold contract: one that isn’t an exempted contract, a concession contract or a utilities contract (section 84(1); guidance para 4). Who is outside it:
- Schools, and transferred Northern Ireland authorities. Part 6 doesn’t apply to procurement by a school, or by a transferred Northern Ireland authority other than under a reserved procurement arrangement or a devolved Welsh procurement arrangement, or under a transferred Northern Ireland procurement arrangement (section 84(2)(a)–(c); guidance para 6).
- Wales. Devolved Welsh authorities must publish below-threshold notices like everyone else (guidance para 9). The suitability rule in section 85 doesn’t apply to them, unless the contract is under a reserved procurement arrangement (section 85(5)(a)–(b)).
- Scotland. Devolved Scottish authorities follow Scottish law instead: the Procurement Reform (Scotland) Act 2014 applies from £50,000 (£2,000,000 for works) (section 3), and the Public Contracts (Scotland) Regulations 2015 above the higher thresholds. See tenders in Scotland.
One more case: if a change would take a contract’s value over the threshold, it becomes a public contract, and the guidance says only a section 74 modification is allowed (paras 31–32).
When a buyer has to publish a notice
If a buyer advertises a below-threshold contract worth £30,000 or more including VAT (£12,000 for central government buyers, including NHS trusts), it must first publish a below-threshold tender notice on the Central Digital Platform (section 87(1), (4); guidance paras 10–12, 35). Devolved Welsh authorities use £30,000 (section 87(4)(a)(ii)).
What that means in practice:
- No notice for a closed invitation. The duty doesn’t apply when the buyer advertises only to particular or pre-selected suppliers, such as framework suppliers or targeted individual suppliers, and doesn’t advertise any other way (section 87(2); para 23).
- Platform first. The notice must appear on the platform before anywhere else (para 12). The tender documents can then be shared any way the buyer likes, such as a portal or email (para 37).
- Fair time limits. Any time limits in the notice must be reasonable and the same for every supplier (section 87(6); para 24).
- A notice after the award. The buyer must publish a contract details notice as soon as reasonably practicable (section 87(3)). The guidance reads that as usually within 30 days for central government and 90 days for others (paras 39, 41). It is published even where only one supplier was asked to quote (para 25), so it shows you who buys what.
No separate suitability stage, with three exceptions
For regulated below-threshold contracts, the Act bars a separate suitability stage before tenders are submitted, but the buyer can still assess suitability at the award stage (section 85(1); guidance para 16). Suitability means legal and financial capacity or technical ability (section 85(2)). In practice, you submit a tender without first passing a shortlisting round.
The bar has three exceptions:
- Larger works contracts. Works contracts with an estimated value of £135,018 or more (central government) or £207,720 or more (other authorities), from 1 January 2026 (section 85(3); guidance paras 18–19). A £150,000 works contract from a council is under £207,720, so the bar applies. From a central government department the same contract is over £135,018, so the bar doesn’t apply.
- Devolved Welsh authorities, unless the contract is under a reserved procurement arrangement, and devolved Welsh procurement arrangements (section 85(5)(a)–(b)).
- Call-offs under a framework (section 85(5)(c)).
The bar applies only when tenders are invited. A buyer can award to a pre-selected supplier without competition (guidance para 21).
Expect checks on insurance and accreditations at the award stage, and read the pack for them now. Our guide to public liability insurance for tenders covers the insurance side.
Two more duties that help smaller suppliers
SME barriers. Before inviting tenders, the buyer must have regard to the particular barriers small and medium-sized enterprises may face and consider whether they can be removed or reduced. This doesn’t apply to framework call-offs (section 86; guidance para 22).
30-day payment. Every regulated below-threshold contract carries an implied term that sums due are paid within 30 days of the later of receiving the invoice or the day payment falls due under it. The term doesn’t run on an invoice the buyer considers invalid or disputes. It flows down to sub-contracts that are wholly or substantially for performing the contract, and any term that tries to override it has no effect (section 88; guidance para 26).
Why some small contracts are never advertised
The guidance says buyers have more freedom with below-threshold work. They can award without competition, ask only targeted known suppliers for quotes, or limit awards to SMEs or voluntary, community and social enterprises, though other policies may still apply (para 14).
Competitions can also be reserved to UK or local suppliers (para 15). The guidance names PPN 005 for central government. For councils, see council contracts for small businesses.
Below the notice figures above, the duty to publish doesn’t apply at all (section 87(4)). So get known to the buyers’ procurement teams, and to the frameworks and dynamic markets they use.
Frameworks and dynamic markets below the threshold
Below-threshold frameworks are unusual but possible. Setting one up is still subject to the suitability bar, but call-offs are not (guidance paras 27–28; section 85(5)(c)).
Dynamic market membership conditions that assess ability to perform conflict with section 85(1), except for works above the section 85(3) figures (paras 29–30). See frameworks and dynamic markets and dynamic market.
Where to find below-threshold tenders
Notifiable below-threshold tender notices go on Find a Tender, the Central Digital Platform (guidance para 11). Our guide on how to use Find a Tender walks through the search.
Contracts Finder still carries notices for procurements started under the old rules, per PPN 019.
In the week to 10 Oct 2026, 85 of the 366 live notices that stated a value were under £100,000 (as of 10 Oct 2026; how we count). That is a value band, not the legal threshold, which is higher.
For current notices, browse live UK tenders by sector and region, or try research contracts under £100k and grounds maintenance tenders.
Your next step
Tell us your trade and postcode to join the free weekly list of live tenders, starting soon. On Pro (£49/month), notices that fit your trade and area are checked against what each states about insurance, certifications and location, and you get an email each morning on days with new matches.
Questions
What is a below-threshold contract?
A contract worth less than the Schedule 1 threshold for its type. Regulated below-threshold contracts follow the lighter rules in Part 6 of the Procurement Act 2023 (section 84). Schools and transferred Northern Ireland authorities are outside those rules.
Does a buyer have to advertise a contract under the threshold?
No. But if it advertises one worth £30,000 or more including VAT (£12,000 for central government buyers, including NHS trusts; £30,000 for devolved Welsh authorities). It must then publish a below-threshold tender notice first. A buyer that invites only particular or pre-selected suppliers needn't publish one (section 87; guidance paras 10, 23). Schools and transferred Northern Ireland authorities are outside these rules (section 84(2)).
Can a buyer shortlist suppliers before tenders on a small contract?
For regulated below-threshold contracts, the Act bars a separate suitability stage before tenders are submitted, but the buyer can still assess suitability at the award stage (section 85(1); guidance para 16). The bar doesn't cover works contracts worth £135,018 or more (central government) or £207,720 or more (others) from 1 January 2026, Welsh devolved buyers, or framework call-offs (section 85(3), (5)).
Do the below-threshold rules apply to schools or in Northern Ireland?
Not to procurement by a school, or by a transferred Northern Ireland authority other than under a reserved procurement arrangement or a devolved Welsh procurement arrangement (section 84(2); guidance para 6). Devolved Scottish authorities are excluded from the Act, with limited exceptions (section 2(5)(a)).
Does the 30-day payment rule apply to small contracts?
Yes. Section 88 implies a 30-day payment term into every regulated below-threshold contract, and into sub-contracts that are wholly or substantially for performing one. Terms that try to override it have no effect (section 88(1), (2), (8), (10)).