The Procurement Bill introduces new grounds for exclusion from all public sector tenders where a supplier has committed a sufficiently serious breach of any relevant contract. This exclusion for poor performance could apply when a breach has resulted in contract termination, the award of damages or a settlement agreement between the supplier and any relevant authority. In the past these difficult situations have often been dealt with by contracting authorities behind closed doors, however the new Bill will change this.
In an unusual move the Government has published a memorandum addressing the European Convention on Human Rights (ECHR) in relation to the Procurement Bill. It is clear the proposed regime allowing for bidders’ debarment and exclusion from all public sector contracts will be a hugely contested area once the new Procurement Act is enacted. This is because being excluded from all future public sector tenders will be catastrophic for most suppliers. In the memorandum the government puts forward its case as to why the debarment provisions are not inconsistent with the ECHR. Looks like the government is getting their argument in first knowing that trouble is on the way.
In2 the bargain 