PART 4

Management of public contracts

Modifying public contracts

Modifying a public contract
74
1
A contracting authority may modify a public contract or a contract that, as a result of the modification, will become a public contract (a “convertible contract”) if the modification—
a
is a permitted modification under Schedule 8 (permitted modifications),
b
is not a substantial modification, or
c
is a below-threshold modification.
2
A contracting authority may also modify a public contract or a convertible contract if the contract is a light touch contract.
3
A “substantial modification” is a modification which would—
a
increase or decrease the term of the contract by more than 10 per cent of the maximum term provided for on award,
b
materially change the scope of the contract, or
c
materially change the economic balance of the contract in favour of the supplier.
4
A modification is a “below-threshold modification” if—
a
the modification would not itself increase or decrease the estimated value of the contract by more than—
i
in the case of a contract for goods or services, 10 per cent;
ii
in the case of a contract for works, 15 per cent,
b
the aggregated value of below-threshold modifications would be less than the threshold amount for the type of contract,
c
the modification would not materially change the scope of the contract, and
d
the modification is not within subsection (1)(a) or (b).
5
In this section, a reference to a modification changing the scope of a contract is a reference to a modification providing for the supply of goods, services or works of a kind not already provided for in the contract.
6
For the purposes of subsection (4), the “aggregated value of below-threshold modifications” is the amount of the estimated value of the contract after modification that is attributable to below-threshold modifications.
7
Subsection (8) applies if, on modifying a public contract under this section, a contracting authority considers that—
a
the modification could reasonably have been made together with another modification made to the contract under this section, and
b
that single modification would not have been permitted under subsection (1).
8
The modification is to be treated as not within subsection (1).
9
Except as provided for in paragraph 9 of Schedule 8 (modification permitted on corporate restructuring), a contracting authority may not modify a public contract so as to change the supplier.
10
Part 3 does not apply in relation to a contract to modify a contract where the modification is made in accordance with this section.
S. 74 in force at 24.2.2025 by S.I. 2024/716, Sch. (as amended by S.I. 2024/959, regs. 1(2), 2(7)(a))
S. 74 not in force at Royal Assent, see s. 127(2)
S. 74 applied in part (with modifications) (24.2.2025) by S.I. 2013/1582, reg. 6(2), Sch. 2 Pt. 1 (as amended by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 17 (with reg. 33))