# Procurement Act 2023, Paragraph 12: Breach of contract and poor performance

Extent: E+W+S+N.I.

(1) A discretionary exclusion ground applies to a supplier if—
(a) the supplier has breached a relevant contract, and
(b) the breach was sufficiently serious.
(2) A discretionary exclusion ground applies to a supplier if—
(a) a court has ruled that the supplier breached a relevant contract, and
(b) the breach was sufficiently serious.
(3) A discretionary exclusion ground applies to a supplier if the supplier—
(a) has not performed a relevant contract to the regulated authority’s satisfaction,
(b) was given proper opportunity to improve performance, and
(c) failed to do so.
(4) A discretionary exclusion ground applies to a supplier if a contracting authority has published information under section 71(5) in respect of the supplier (information concerning either breach or poor performance).
(5) For the purposes of this paragraph, a breach of a contract is “sufficiently serious” if it results in—
(a) termination (or partial termination) of the contract,
(b) the award of damages,
(c) a settlement agreement between the supplier and the regulated authority.
(6) In this paragraph—
“regulated authority” means—
(a)a contracting authority,
(b)another public authority, or
(c)an authority outside the United Kingdom that the decision-maker considers to be equivalent;
“relevant contract” means a contract to which a regulated authority is party.

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Source: https://www.legislation.gov.uk/ukpga/2023/54/schedule/7/paragraph/12 (the official version)
Page: https://openlegislation.uk/procurement-act-2023/schedule-7/paragraph-12
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.