Real Estate

Will the Procurement Act make it easier to deliver property deals involving the public sector? Many property deals involve complex contractual structures. These often include the creation of partnerships between the private and public sector and forms of public funding. They also often involve multiple parties (e.g., local authorities, government agencies, funders, investors, developers, contractors and consultants).

Compliance with procurement law (and subsidy control rules) is key to successfully structuring these projects. The procurement basis for these schemes varies, but usually involves having to navigate the complex and sometimes inconsistent case-law derived from the previous set of procurement regulations.  

While most of main concepts remain unchanged, some of the more detailed provisions in the new Act may make it easier to navigate public procurement rules. Specific features of the Act that are particularly relevant to the Real Estate sector include the definitions of a “public contract” and “works”; the exemptions for the acquisition of land and buildings; direct award justifications and requirements to compete sub-contracts; and the rules applying to the modification of public contracts.