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Newsletter 24 Oct 2025 · Portugal

CHANGE IN PUBLIC PROCUREMENT RULES FOR HOUSING

Meet The Law - Public Law

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Decree-Law No. 112/2025 of 23 October was published, introducing the fifteenth amendment to the Public Procurement Code (PPC) and the third amendment to Law No. 30/2021 of 21 May, which approves special public procurement measures, seeks to counteract the trend of rising housing prices.

Although surgical, the amendment to Article 43 of the PPC is significant because it brings about a real paradigm shift. In effect, it is now possible, under equal circumstances, to resort to construction contracts based on an execution project, as well as design-build contracts, "at the discretion of the authorities and in light of the public interests at stake".

On the other hand, regarding the regime of special public procurement measures (Law No. 30/2021 of 21 May), the thresholds for the adoption of prior consultation and the direct award in the context of the conclusion of contracts intended to promote public housing or controlled costs have been increased.

In this context, contracting authorities may now adopt:

  • Simplified prior consultation, with an invitation to at least five entities, when the contract value is simultaneously:

(i) lower than the European public procurement thresholds (nos.  2, 3 or 4 of Article 474 of the CCP); and

(ii) less than €1,000,000 (whereas previously it was €750,000 compared to the previous threshold).

 

  • Direct award in the case of contracts for:

(i) public works contracts or concessions with a value equal to or less than €60,000;

(ii) lease contracts, acquisition of movable property or services with a value equal to or less than €30,000;

(iii) other contracts with a value equal to or less than €65,000.

 

Decree-Law No. 112/2025 applies to public procurement procedures initiated after its entry into force, which occurs on the fifth day after its publication.

For further information on Decree-Law No. 112/2025, please see here: Decree-Law No. 112/2025 | DR

 

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