Complaints about Public Procurement: How Are They Handled, and What Consequences Can They Have?
Complaints about Public Procurement: How Are They Handled, and What Consequences Can They Have?
When a public authority in the UK procures goods, services, or works, the process must follow strict rules designed to ensure transparency, equal treatment, and fair competition. But what happens if a supplier believes that these rules have not been followed? Complaints about public procurement are an important part of the UK’s procurement system, and they can have significant consequences for both contracting authorities and suppliers.
What Is a Procurement Complaint?
A procurement complaint is a formal challenge to the way a public procurement process has been conducted. It can be raised by a supplier who believes that a contracting authority has breached procurement law — for example, by setting discriminatory requirements, evaluating bids unfairly, or awarding a contract in a way that distorts competition.
In the UK, such complaints can be handled in several ways. Initially, suppliers are encouraged to raise concerns directly with the contracting authority through an informal complaint or clarification. If the issue cannot be resolved, the supplier may bring a formal legal challenge under the Public Contracts Regulations 2015 (PCR 2015), which implement the EU-derived procurement rules still in force in the UK. These challenges are heard by the High Court in England, Wales, and Northern Ireland, or by the Court of Session in Scotland.
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How Are Complaints Handled?
When a supplier decides to challenge a procurement decision, time is of the essence. Under the PCR 2015, a claim must generally be brought within 30 days of the supplier knowing (or when it ought to have known) of the alleged breach. The court has discretion to extend this period to a maximum of three months, but only if there is a good reason.
Once a claim is issued, the contracting authority is notified, and the automatic suspension of contract award may apply. This means that the authority cannot enter into the contract until the court decides whether the suspension should remain in place. The court will then consider written evidence and, if necessary, hold a hearing to determine whether the procurement rules were breached and what remedies should follow.
In addition to court proceedings, suppliers can also raise concerns with oversight bodies such as the Cabinet Office’s Public Procurement Review Service (PPRS), which investigates complaints about poor procurement practice. While the PPRS cannot overturn decisions or award damages, it can help resolve issues informally and promote better compliance.
Possible Consequences for Contracting Authorities
If the court finds that a contracting authority has breached procurement law, the consequences can be serious. The court has several powers, including:
- Setting aside the award decision, preventing the contract from being concluded with the chosen supplier.
- Declaring a contract “ineffective”, meaning it is cancelled if it was entered into unlawfully.
- Awarding damages to the aggrieved supplier for losses suffered as a result of the breach.
- Shortening the duration of the contract or imposing civil financial penalties in certain cases.
Beyond legal sanctions, a procurement challenge can damage an authority’s reputation, delay projects, and increase costs. For public bodies under pressure to deliver services efficiently, such delays can be particularly disruptive.
What Does It Mean for Suppliers?
For suppliers, the ability to challenge a procurement process is an important safeguard. It ensures that public contracts are awarded fairly and that all bidders are treated equally. However, bringing a challenge is not a decision to be taken lightly. Legal proceedings can be costly and time-consuming, and relationships with contracting authorities may be affected.
Before taking formal action, suppliers should seek specialist legal advice to assess whether there are solid grounds for a claim and whether alternative routes, such as informal resolution or mediation, might be more effective.
Preventing Complaints: Good Practice for Both Sides
The best way to handle procurement complaints is to prevent them from arising in the first place. For contracting authorities, this means ensuring a transparent, well-documented process:
- Use clear and objective selection and award criteria.
- Provide consistent information to all bidders.
- Keep thorough records of decisions and evaluations.
- Observe all statutory time limits and procedural requirements.
For suppliers, prevention means reading tender documents carefully, asking clarification questions early, and ensuring that bids fully comply with the stated requirements. Many disputes can be avoided if misunderstandings are addressed before the submission deadline.
Complaints as Part of a Healthy System
Although procurement complaints can seem burdensome, they play a vital role in maintaining trust in the public procurement system. They ensure that rules are enforced, that authorities remain accountable, and that suppliers have confidence in the fairness of the process.
A robust and transparent complaints system ultimately benefits everyone: it promotes fair competition, improves value for money, and strengthens public confidence in how taxpayer funds are spent.
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