The Procurement Act 2023 introduces greater flexibility in how councils can engage with suppliers during a procurement. One of the most significant areas is the ability to negotiate in certain procedures.
For local authorities, this presents an opportunity to improve outcomes, but also a risk if negotiation is not handled carefully.
Why this matters now
Many councils are used to tightly structured procedures with limited scope for dialogue.
The new regime allows more flexibility, but that does not mean negotiation can be used freely in every case. Authorities must still ensure fairness, transparency and equal treatment.
What negotiation means in practice
Negotiation may involve refining proposals, clarifying solutions or improving value for money.
However, it must be conducted in a controlled way. All bidders should be treated consistently, and the authority must avoid giving one supplier an unfair advantage.
The risks to manage
Poorly managed negotiation can lead to inconsistent treatment, unclear audit trails and increased challenge risk.
Authorities also need to ensure that any changes resulting from negotiation are properly reflected in final submissions and evaluation.
What councils should do now
Review internal guidance on when negotiation is permitted and how it should be conducted.
Ensure procurement teams are clear on documentation requirements and governance checkpoints.
Provide support to evaluators and commissioners who may be less familiar with negotiated procedures.
Where councils want to strengthen capability in this area, the Prestige Commercial Consulting Learning Portal offers structured training support.
The takeaway
Negotiation can improve procurement outcomes, but only if it is used carefully.
Councils that build clear processes and maintain strong records will be able to use this flexibility effectively while managing risk.