The Procurement Act 2023 goes live in just two weeks - on Monday 24 February 2025. We're counting down with a series of top tips to help get you ready for the transition. This week we consider practical steps for contract management. 

For Contracting Authorities:

1. Implied terms: Terms will be implied into public contracts in relation to prompt payment and termination. Consider what enhanced (express) drafting is required (e.g. to set out the termination process, clarify how assets/data will be transferred or returned, deal with payment/compensation issues). 
2. Contract Change Notices: Must be published before making modifications unless an exemption applies. Ensure you have processes in place to have notice of changes and consider whether to make use of the voluntary standstill period to minimise risk. Given the likely increased scrutiny over changes, try to expressly provide for likely changes (or categories of changes) when preparing procurement documents, to have the best ability to justify future changes under this new regime.
3. Contract Termination Notices: Must be published within 30 days of a contract ending, even for contracts that have merely expired or been fulfilled. Going forward terminations for breach of contract, and related settlements/awards, will be more visible to the public/market. 
4. KPIs: Ensure your contract managers are aware of the rules regarding monitoring and reporting on performance against KPIs, as well as the potential consequences of poor performance for suppliers.  
5. Review conditions of participation prior to award: Make sure you renew any necessary checks (e.g. in relation to financial standing) to ensure that your successful bidder still meets all necessary conditions prior to contracting. 

For Bidders:

1. Implied terms: New and strengthened terms in relation to prompt payment and termination will be implied into public contracts which cannot be negotiated away. Prompt payment terms extend to public sub-contracts - suppliers must pay valid, non-disputed invoices from members of their contract supply chain within 30 days of receipt. Ensure you have systems in place to comply with this requirement.  
2. Co-operation is key: Be prepared to cooperate with your authority counterparty in any contract change process and be aware that they may scrutinise proposed contract changes more closely. 
3. Notices: Ask the authority for visibility of the content of any Contract Change Notices and Contract Performance Notices before they are issued publicly. 
4. KPIs: Ensure that you keep on top of KPIs and raise concerns regarding management/ monitoring of those KPIs at an early stage, including at the sub-contract level.  
5. Exclusion: Be aware that you can become “excludable” in a broader range of circumstances than ever before, including where you have not performed a relevant contract to the authority’s satisfaction and/or where you have entered into a settlement agreement. Don't assume that you will be unaffected if your performance has been affected by circumstances beyond your control. 

You can visit our PATH page for more articles, guides and videos on the PA23. Alternatively contact Laura Wisdom or another member of our procurement team if you are interested in a tailored workshop or discussion on issues specific to your organisation.