Source: https://tendernation.io/glossary/below-threshold-contract Glossary # Below-threshold contract A public contract worth less than the relevant procurement threshold, covered by lighter rules in Part 6 of the Procurement Act 2023. Updated 14 Oct 2026 A below-threshold contract is a public contract with an estimated value under the relevant [procurement threshold](/glossary/procurement-thresholds). These contracts do not go through the full competitive rules, but Part 6 of the Procurement Act 2023 still applies a lighter set of duties to most of them. ## What it means [Sections 84 to 88 of the Procurement Act 2023](https://www.legislation.gov.uk/ukpga/2023/54/part/6) cover "regulated below-threshold contracts". The key rules for suppliers are: - **No pre-qualification for most contracts.** Section 85(1) says that if a buyer invites tenders, it may not restrict who can bid by assessing suppliers' suitability first. Section 85(3) makes an exception for higher-value works contracts. - **A duty to think about SMEs.** Under section 86, the buyer must consider the barriers small businesses face and whether they can be removed or reduced. - **Notices.** Under section 87, if a buyer advertises a "notifiable" below-threshold contract it must publish a below-threshold tender notice first, and a contract details notice after award. Notifiable means at least £12,000 including VAT for most central government buyers and £30,000 for other buyers. - **Payment terms.** Section 88 implies 30-day payment terms into these contracts. Buyers can also reserve some below-threshold competitions for local suppliers or SMEs: see [reserved contracts](/glossary/reserved-contracts). ## Why it matters for SMEs Most first public sector wins are below threshold. Contracts are smaller, documents are shorter and, because a buyer cannot run a suitability gate on most of them, a young company without three years of accounts can still bid. ## Practical tip Many below-threshold opportunities are never advertised, because buyers can invite quotes directly from suppliers they know. Get known: register on local authority supplier portals, answer preliminary market engagement requests, and check the [procurement threshold checker](/tools/procurement-threshold-checker) to see whether a contract you have spotted should have been advertised. Find tenders that fit your business Search UK, EU and World Bank tenders in one place, get AI summaries and a fit score for each one, and track bids in a pipeline. Professional comes with a 14-day free trial, no card needed. [Browse live tenders](/opportunities)[Start free trial ](/register) 14-day free trial, no card required Browse by sector - [Construction work](https://tendernation.io/sectors/construction-work)324 - [Architecture, engineering & surveying](https://tendernation.io/sectors/architecture-engineering-surveying)115 - [IT services](https://tendernation.io/sectors/it-services)48 - [Business services](https://tendernation.io/sectors/business-services)161 - [Health and social work](https://tendernation.io/sectors/health-social-work)249 - [Sewage, refuse, cleaning & environmental](https://tendernation.io/sectors/sewage-refuse-cleaning-environmental)73 [All sectors ](/sectors) ## Nearby terms [Assessment summaryThe written feedback a buyer must give every assessed bidder before announcing the winner, showing your scores and the winning tender's scores.](https://tendernation.io/glossary/assessment-summary)[Award criteriaThe published factors, such as quality, price and social value, that a buyer uses to score tenders and pick the most advantageous one.](https://tendernation.io/glossary/award-criteria)[Call-off contractA contract awarded to a supplier under an existing framework, either directly or after a further competition between framework suppliers.](https://tendernation.io/glossary/call-off-contract)[Carbon Reduction Plan (PPN 006)A published plan confirming a supplier's commitment to net zero by 2050 and reporting its emissions, required for major central government contracts.](https://tendernation.io/glossary/carbon-reduction-plan)[Central Digital PlatformThe government's online system, run through Find a Tender, where buyers publish Procurement Act notices and suppliers register their details once.](https://tendernation.io/glossary/central-digital-platform)[Clarification questionsQuestions a bidder sends the buyer during a tender to resolve ambiguity, with answers usually shared with every bidder.](https://tendernation.io/glossary/clarification-questions) [Read our procurement guides ](/guides)