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Public procurement: Is knowledge power?

Overview

On 1 October 2011, the Public Procurement (Miscellaneous Amendments) Regulations 2011 came into force, updating existing procurement regulations.

The amending Regulations ‘tidy up’ a few points, but their main aim is to clarify the position on time limits for starting legal proceedings where a bidder thinks a contracting authority has breached the procurement rules.

The Cabinet Office has decided that from 1 October 2011, claims must be brought within 30 days from the date of knowledge, although there is court discretion to extend this to a maximum of three months where there is good reason. (Where the date of knowledge occurs prior to 1 October, the old rules will still apply.)

The Cabinet Office believes that 30 days is a realistic timeframe for bidders to assess the strengths of their case and explore alternatives to legal action, without the need to issue protective proceedings.

At the same time, it is not so long that the empty threat of legal action could be repeatedly dangled before contracting authorities, while bidders hold out for a ‘better offer’. The Cabinet Office also thinks that the ability for the period to be extended in certain circumstances, strikes the difficult balance between certainty and avoiding potential injustice.

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