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ARTICLE · 14 JULY 2009

Procurement Problems In The Credit Crunch

Tender procedures for public contracts in this country are regulated by the Public Contracts Regulations 2006, which implements the European Directive 2004/18.

United KingdomReal Estate and Construction

Tender procedures for public contracts in this country are regulated by the Public Contracts Regulations 2006, which implements the European Directive 2004/18. Until recently, unlike in the rest of Europe, there have been few challenges to tender procedures in the UK courts. However, over the last few years disappointed tenderers have become less reluctant to take their complaints to the courts. But has or will the credit crunch affect this trend? And what sort of issues is the credit crunch throwing up for procurements?

The indications so far are that the credit crunch is unlikely to reduce the number of procurement challenges. With work thin on the ground, the importance of winning new contracts increases. If a tenderer is unsuccessful, contrary to its expectations, it may need to review the reasons for failing to win the contract more carefully than in a more buoyant market.

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