2. Legislation and Policy

2.1 Legal Context

Procurement in local authorities in NI is subject to a number of pieces of legislation.

The principal ones are highlighted below.

2.1.1 Local Government Act NI (1972)

To enter contracts for the supply of goods, works and services, local authorities in Northern Ireland are subject to and must adhere to procurement related legislation / rules.

The Local Government Act (Northern Ireland) 1972 states a Council may enter contracts necessary for the discharge of any of its functions.

It states that all contracts made by the Council shall be made in accordance with its standing orders and, in the case of contracts for the supply of goods or materials or for the execution of works, the standing orders shall:

a) require that, except as otherwise provided by or under the standing orders, notice of the intention of the council to enter into a contract shall be published and tenders invited; and

b) regulate the manner in which such notice is to be published, and tenders are to be invited.

​2.1.2 The UK Procurement Act 2023 (the 2023 Act) – Regulated Procurement

The 2023 Act reformed existing procurement rules in the UK and came into effect on 24 February 2025.

The Act was put in place following the UK withdrawal from the EU.

The Act, introduced on February 24, 2025, aims to simplify and modernise the UK's public procurement system. It consolidates existing procurement rules into a single framework, with the goal of creating a more transparent and flexible system that better supports public sector needs and encourages innovation.

The Act also seeks to open up procurement to new entrants, particularly small businesses, and social enterprises.

A central digital platform, integrated with the Find a Tender service requires councils to register and share specific supplier information.

A useful summary of the main provisions of the Act can be found here The Procurement Act 2023: A short guide for senior leaders (HTML) - GOV.UK.

The legislation itself can be found here Procurement Act 2023.

2.1.3 UK Public Procurement Regulations – Prior to the Procurement Act 2023

For procurements prior to 24 February 2025 (the ‘go live; date of the 2023 Act), the Public Contracts Regulations (PCR), 2015 rules for procurement and the Concession Contracts Regulations, 2016 apply.

In addition to the Procurement Act 2023, PPN 04/21 was approved by the Northern Ireland Executive on 6 March 2025 amending the procurement control limits applicable to public bodies in Northern Ireland, including a new tender threshold of £50,000 (up from the previous £30,000).

Councils are not legally bound by the Procurement Policy Note (PPN) and may set their own thresholds.

However, we look to the PPN as a source of best practice and have taken its recommended levels into consideration.

Accordingly, the revised tender limit has been adopted within this policy.

2.1.5 EU Directive 2014/24

In addition to the above, EU funded procurement (for example, Peace Plus funded procurement) must comply with EU Directive 2014/24 (subject to any legal advice that may be issued to clarify how the Directive / UK procurement legislation is to be applied).

2.1.6 Other Relevant Legislation

When conducting procurement exercises it is also useful to assess whether the bidders comply with relevant legislation.

The types of legislation that are commonly relevant in a procurement exercise are:

• Bribery Act;
• Health and safety regulations;
• Modern Slavery Act;
• Environmental regulations; and
• Employment regulations.

2.2 Procurement Policy Landscape

Construction & Procurement Delivery (CPD) is a business area within the Department of Finance (DoF) in the Northern Ireland Civil Service.

It is responsible for disseminating advice and guidance on the direction and policies on public procurement.

It does this through the production of Procurement Guidance Notes, which are developed in consultation with its public sector stakeholders.

Procurement Guidance Notes are available on the CPD Website.

Although the Council is not directly subject to Northern Ireland Public Procurement Policy, Council officers are encouraged to use Construction & Procurement Delivery (CPD) best practice procurement guidance to assist them if they are looking for any further guidance when performing procurement exercises, especially if the project is funded through central government.

The Council’s Procurement Unit can support officers in accessing / applying advice that is relevant to specific procurements / contracts.

The Council is committed to responsible and ethical procurement.

This encompasses both Social Value and Sustainability and recognises the Council’s responsibility to procure value for money goods, services, works and utilities, whilst maximising social value, minimising environmental impacts and ensuring the ethical treatment of people throughout its supply chains.

2.3.1 Legislative Context

The Council conducts procurement activity in line with the best practice principles of transparency, non-discrimination, fair treatment, value for money and the public good when conducting procurements of any value.

The Procurement Regulations set out the specific types of qualification, selection and award criteria that may be used to assess bidders to ensure suppliers are treated in a fair and transparent manner.

Assessing suppliers on criteria considered as non-commercial is not permitted.

Non-commercial considerations could include, for example, a supplier’s political affiliation.

2.3.2 Social Value

In the context of procurement, social value is about leveraging service and works contracts to protect and enhance the health and wellbeing of local people and the local environment, providing skills and employment opportunities and promoting the local economy.

Social Value includes environmental, economic and societal objectives.

Council will maximise social, economic and environmental outcomes through procurement spend and grant funding.

In Northern Ireland, the Northern Ireland Procurement Board agreed a standard approach (the ‘Buy Social’ Model) to be used in the procurement of construction projects from April 2016.

The Buy Social model seeks to maximise the benefits from public procurement in terms of personal well-being, social cohesion and inclusion, equal opportunities and sustainable development.

PPNO1/21 - Social Value in procurement outlines the requirements to incorporate Social Value in procurements under the four themes listed below and requires contractor staff to be paid the Real Living Wage for relevant contracts:

• Increasing secure employment and skills;
• Building ethical and resilient supply chains;
• Delivering Climate Action; and
• Promoting Wellbeing.

More information can be found here PPN 01/21 - Social Value in Procurement |​ Department of Finance.

While not mandated to local government, the Buy Social model is considered good practice and will be considered in the Council’s procurement to formally embed social value in procurement processes, policies, corporate strategies and corporate objectives.

The Council is committed to ensuring that projects provide the maximum benefit to the borough through adding social value clauses to above threshold Government contracts, allocating a minimum of 10% of the total evaluation award criteria to social value.

2.3.3 Environmental Sustainability

Environmental sustainability means responsibly managing Earth's natural resources and ecosystems to meet current human needs without harming the ability of future generations to meet their own, focusing on balancing ecological health with social well-being and economic viability through practices like conserving resources, reducing pollution, using renewable energy, and protecting biodiversity for long-term planetary health.

Minimising environmental impacts, responsibly managing resources and ecosystems and bringing efficiency throughout the supply chains of all goods, services and works procured:

• Sourcing lower impact (e.g. from extraction, processing/manufacturing, transportation, carbon emissions) materials and methods;
• Maximising resource efficiency by considering whole life costs and seeking to reduce waste;
• Encouraging reuse and use of recycle and sustainable materials;
• Protecting and preserving natural habitats and species, preserving air quality and land degradation avoidance;
• Promoting sustainable food, farming, and animal welfare;
• Promoting Climate Action – Mitigation (reducing greenhouse gas emissions):
  • Supporting energy efficiency and the use of renewable energy and renewable energy technologies:
  • Supporting active and sustainable travel and the use of low-carbon fuels in transport;
• Promoting Climate Action - Adaptation:
  • adjusting to current and future impacts of climate change to reduce harm and build resilience, focusing on actions like improving infrastructure for floods and heat, managing water resources, and enhancing natural systems, complementing mitigation efforts (reducing emissions) by managing unavoidable effects; and
• Promoting peace, justice, equity, health and wellbeing.

2.3.4 Ethical Sourcing

Ensuring that human rights and employment rights are protected throughout the Council’s supply chains and encouraging responsible business practices within the procurement process: