Procurement Act 2023 — further duties in 2026 that contracting authorities must observe

Four remaining sections of the Procurement Act 2023 (the Act) that didn’t come into force with the rest of the legislation last year are scheduled to take effect in early 2026. The Procurement Act 2023 (Commencement No.4) Regulations 2025 (the Regulations), which came into force in early December 2025, both triggers these remaining sections to come into effect and sets out the timetable for their commencement.

The sections introduced by the Regulations are designed to enhance transparency across procurement activity. Contracting authorities will need to understand these new requirements and update their processes accordingly.

Here, Michael Winder and Samantha Thompson explore what’s changing, when the changes take effect and the practical implications for contracting authorities.

Sections now in effect as of 1 January 2026

Section 69 — payment compliance notices (England)

This section of the Act came into effect on 1 January 2026 for English contracting authorities only. It provides details of the payment compliance notices (PCNs) that contracting authorities must publish. 

What’s a PCN? 

A PCN sets out specific information about a contracting authority’s compliance with the prompt payment requirements in section 68(2) of the Act. Under section 68, contracting authorities must make payment within 30 days of receiving an invoice (or the due date for payment, if later). The PCN primarily records what percentage of the invoices due were paid within that 30-day window. 

When must a PCN be published?

A PCN is required for any reporting period in which a contracting authority has made a payment under a public contract or a sum owed under a public contract has become due. The PCN must be published within 30 days of the end of the reporting period. 

The first reporting period runs from 1 January 2026 (the date that section 69 came into force) to 31 March 2026. Each subsequent reporting period covers a further six‑month span. This means that two PCNs a year will be required — one around April and one around October.

It's worth noting that section 69 doesn’t apply to public utilities or concession contracts or those awarded by a school or Northern Ireland authority. 

Section 71 — assessment of contract performance 

This section sets out the two circumstances in which contracting authorities must assess the performance of a supplier under a public contract.

The first circumstance applies to contracts valued over £5m. The Act requires contracting authorities to set and publish KPIs when awarding such contracts. The section then requires contracting authorities to assess the supplier’s performance against those KPIs at least once every 12 months and again when the contract ends. The contracting authority must also publish information about each assessment. 

The second circumstance applies where either: 

1. a supplier has breached a public contract and the breach results in termination (full or partial), damages or a settlement agreement, or
2. the contracting authority considers that a supplier isn’t performing to an acceptable standard, the supplier has been given proper opportunity to improve and has failed to do so. 

In these cases, the contracting authority has 30 days from the point that the issue arises to publish information about the breach or failure.

What’s the purpose of section 71? 

The assessment of contract performance — and the publication of a contract performance notice — is intended to record how the suppliers perform against KPIs for larger contracts and to record information relating to poor performance. Crucially, evidence of poor performance can be used to exclude suppliers from future public sector procurement processes under the Act.

Section 71 doesn’t apply to light touch contracts or private utilities.

Sections coming into effect on 1 April 2026

Section 69 — payment compliance notices (Wales)

From 1 April 2026, the provisions of section 69 (as detailed above) will come into effect for procurements carried out by devolved Welsh authorities. 

Section 70 — information about payments under public contracts (England)

Under section 70 of the Act, a contracting authority must publish information about any single payment of more than £30,000 made under a public contract. This information must be published within 30 days of the end of the quarter in which the payment was made. The Act defines a ‘quarter’ as a three‑month period ending on 31 March, 30 June, 30 September or 31 December.

Section 70 doesn’t apply to utilities contracts, concession contracts or those awarded by schools. There’s currently no commencement date for Welsh authorities and the obligation doesn’t apply to Northern Ireland. As a result, this requirement applies only to English contracting authorities for the time being.

What does this mean for contracting authorities?

Once each section comes into force, the reporting and transparency burden on contracting authorities will increase. This includes two notices a year under section 69, quarterly notices under section 70 where large payments are made and yearly performance reporting under section 71 for high-value contracts. 

Disputes around performance will also carry greater significance for both contracting authorities and suppliers as they’ll now be subject to reporting. In particular, the usual confidentiality of settlement agreements will no longer provide protection. 

Although this creates additional reporting obligations, contracting authorities will benefit from improved access to supplier information through Find a Tender. Conversely, suppliers concerned about reputational impact may be more inclined to challenge performance monitoring and rectification measures.

We recommend that contracting authorities and procurement teams receive appropriate training on the reporting duties outlined above, as well as on the importance of accurately assessing supplier performance and managing KPIs. 

All contracting authorities should also ensure that relevant officers are familiar with and have access to the systems required to publish notices on Find a Tender.

Talk to us

If you’re preparing for these changes or want guidance on how to manage the increased reporting and transparency obligations, our specialist public procurement team is here to help. We can support you in reviewing your processes, training your teams and ensuring that your organisation is ready for full compliance.

Talk to us by giving us a call on 0333 004 4488, sending us an email at hello@brabners.com or completing our contact form below.