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How is Brexit Going to Impact Public Procurement?

Nov 19, 2018

Since the referendum, considerable discussion on the probable effects of Brexit for utilities and public procurement has been going on. Will Brexit result in wholesale changes to UK public procurement or will Brexit impact businesses minimally? The Brexit impact in this area, as in many others, are, in fact, too tough to predict. They essentially depend on political decisions, particularly on the relationship of the UK with the EU. The experts at SpendEdge, have analyzed in detail how Brexit will impact public procuremContact USent and what is the present synopsis. Also, our experts have come up with a few important things in public procurement that are important to consider in the current scenario.

How Will Brexit Impact Public Procurement Functions?

Brexit Impact 1. Brexit will make it impossible for UK authorities to publish notices in the Official Journal (OJEU) and existing UK government-based publication notifications like Contracts Finder will have to perform this duty. This will make procedures for contract award notices and contract notices in public procurement a lot harder to comply with.

Brexit Impact 2. It is believed that there could be greater freedom over procurement. Modifications to contracts and the requirements related to transparency of evaluation in public procurement will become easier.

Brexit Impact 3. Post-Brexit the application of European case laws within the UK will change. Presently, EU case law on important issues like disclosure to unsuccessful bidders and level of transparency is binding; but, in future, it will be dictated by the UK courts.

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Brexit Impact 4. Post-Brexit reference to various European Standards and Codes will ultimately cease. Clearly, Brexit will force the UK construction industry to revert back to British Standards and Codes of Practices.

Brexit Impact 5. It is not clear what will happen to EU bidders – will they be treated in the same manner as the current non-EU members.

Brexit Impact 6. It is mostly believed that the UK will remain involved with the Agreement on Government Procurement (GPA) as per the direction by the World Trade Organization.request proposal

Things Need to be Considered Now

#1. Presently, contracts that are being procured in compliance with the EU public procurement will continue. But, organizations will need to be well informed about where projects largely go post-Brexit and the long-term frameworks, potential consequences, and impact.

#2. All contracting parties in the public procurement process will have to be considered carefully, especially added constraints like charges on labor goods and materials and tariffs.

#3. It is widely accepted that the UK construction industry relies mostly on labor from mainland Europe. So, if this labor force decides to leave the UK or the situation becomes legally difficult for them to remain, it is going to impose too much pressure on the UK construction market, leaving a notable gap in the availability of skilled resources, resulting in an increase in the cost of construction.

#4. The scarcity of labor resources presents challenges pertaining to both affordability and project viability. It also raises a question of how to address this issue, i.e., who should take ownership of this risk and should there be an equal sharing of this risk between the contracting parties.

#5. The contracts which are dependent on the continuation and provision of European Commission grants or State aid are also considered. It is unavoidable that such funding and grants will cease without any certainty as to whether the UK government will step in and continue to honor any such promises or agreements on future funding agreements. This could have a profound impact on such projects.


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