The following Public Law Q&A produced in partnership with Jack Eustice and Rebecca Rees of Trowers & Hamlins LLP provides comprehensive and up to date legal information covering:
In answering this Q&A, we have limited our research to cover public procurement under the Public Contracts Regulations 2015, SI 2015/102 (PCR 2015).
A merger situation may result in the identity of a contractor being amended, requiring agreements with that contractor to be novated to a new vehicle. In the case of a public contract, replacement of the contractor will be treated as a modification of the contract for the purpose of the PCR 2015, SI 2015/102. Under these rules, substantial modification to a public contract may, in effect, result in the award of a new contract which requires a new public procurement process to be undertaken.
A ‘substantial’ modification in this context is defined in PCR 2015, SI 2015/102, reg 72(8) as one which:
renders the contract materially different in character
would have affected the candidates selected or tender awarded or attracted additional participants in the procurement
changes the economic balance in favour of the contractor in a way which was not provided
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