When applying to provide goods, works or services, you will see the terms above and below 'thresholds' when describing the value of a contract. Use this page to understand what the thresholds are and how they affect the procurement process.
| Type of contract | Threshold including VAT | Threshold before VAT |
|---|---|---|
| Works contracts and concession contracts | £5,336,937 | £4,269,550 |
| Supplies and/or Services for Local Government | £213,477 | £170,782 |
| Social and other specific services | £663,540 | £530,832 |
How financial thresholds affect the procurement process
As a local authority, we have to follow different processes when procuring contracts depending on their financial value.
If the value of the contract is £5,000 or less, we apply the following principles:
- We consider the use of a purchasing card below £500
- We apply 'Think Local'. This means that preference will be given to local suppliers where they exist, providing they offer Value for Money
- We test the market by getting at least three written quotes to demonstrate Value for Money
If the value of the contract is between £5,001 and £50,000, we apply the following principles:
- We apply 'Think Local'. This means that preference will be given to local suppliers where they exist, providing they offer Value for Money
- We consider the Social Value policy
- We test the market by getting at least three written quotes to demonstrate Value for Money
If the value of the contract is between £50,001 and £100,000, we apply the following principles:
- We apply 'Think Local'. This means that preference will be given to local suppliers where they exist, providing they offer Value for Money
- We must apply the Social Value policy
- We test the market by getting at least three written tenders to demonstrate Value for Money
If the value of the contract is between £100,001 and the financial threshold, we apply the following principles:
- We must advertise the contract
- We obtain at least three written tenders
- We must apply the Social Value Policy
If the value of the contract is above the financial threshold, we apply the following principles:
- We advertise the contract in line with the Public Procurement Regulations
- We enforce timelines that work alongside procurement regulations
- We obtain at least three written tenders
- We must apply the Social Value Policy