Regulation 22 Termination of contractsI1

England and Wales

(1)

A relevant authority must ensure that every contract it awards contains provisions enabling the relevant authority to terminate the contract where—

(a)

the contract has been subject to a modification which cannot be made under regulation 13 without following a new procurement process;

(b)

the provider, at the time of the contract award, should have been excluded from the procurement process in accordance with regulation 20(1) F1or 20A(3)F2;

(c)

a provider has, since the award of the contract, become an excluded provider or excludable provider;

(d)

a provider to which the provider is sub-contracting the performance of all or part of the public contract is an excluded or excludable provider

(2)

The provisions referred to in paragraph (1) may address the basis on which the power is to be exercisable in those circumstances, for example by providing for notice of termination to be given and by addressing consequential matters that may arise from the termination.

(3)

To the extent that a contract awarded under these Regulations does not contain provisions enabling the relevant authority to terminate the contract on any of the grounds mentioned in paragraph (1), a power for the relevant authority to do so on giving reasonable notice to the provider is an implied term of that contract.

F3(4)

A relevant authority must not terminate a contract, whether by reference to provisions in the contract or the implied term in paragraph (3), on the basis of the mandatory exclusion ground in paragraph 35 of Schedule 6 to the Procurement Act 2023 (threat to national security) unless the authority has notified a Minister of the Crown of its intention.

(5)

A relevant authority must not terminate a contract, whether by reference to provisions in the contract or the implied term in paragraph (3), on the basis of the discretionary exclusion ground in paragraph 14 of Schedule 7 to the Procurement Act 2023 (threat to national security) unless—

(a)

the authority has notified a Minister of the Crown of its intention, and

(b)

the Minister considers that—

(i)

the provider or a sub-contractor is an excludable supplier by reference to paragraph 14 of Schedule 7 to the Procurement Act 2023, and

(ii)

the contract should be terminated.

Annotations

Textual amendments

F1: Words in reg. 22(1)(b) inserted (24.2.2025) by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 28(6)(a) (with reg. 34)
F2: Reg. 22(1)(c)(d) inserted (24.2.2025) by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 28(6)(b) (with reg. 34)
F3: Reg. 22(4)(5) inserted (24.3.2026) by The Procurement (Amendment) Regulations 2026 (S.I. 2026/360), regs. 1(2), 4

Commencement

I1: Reg. 22 in force at 1.1.2024, see reg. 1(1)