Guide
Below-threshold tenders explained
What below-threshold public contracts are, what changed in February 2025, and why small suppliers should watch them carefully.
What below-threshold means
GOV.UK guidance updated in 2026 describes a below-threshold contract as a lower-value contract than a public contract, defined by reference to the thresholds in Schedule 1 of the Procurement Act 2023. That guidance also says below-threshold contracts are not 'covered procurement' under section 1 of the Act. In plain supplier language: they are still public contracts, but they sit below the main statutory value thresholds.
Thresholds and notice duties can depend on buyer type, contract type, country, and the procurement regime in force. Treat any number you see in a guide as a prompt to check the live official notice and guidance. TenderReader avoids hard-coding a legal threshold claim into the page copy because the product is decision support, not legal advice.
The visibility change
Find a Tender says that from 24 February 2025, both above-threshold and below-threshold notices about new UK procurements are published on Find a Tender, except below-threshold in Scotland. This is the practical change that matters for search behaviour. Small suppliers who learned to associate Find a Tender only with high-value procurements need to update that habit.
The Find a Tender notice-types page adds nuance: Procurement Act 2023 notice sequences apply to processes starting on or after 24 February 2025, with exceptions for Scottish rules, Northern Irish below-threshold contracts, and earlier frameworks, dynamic purchasing systems, or qualification systems. That is why a real search process still needs more than one source and a careful read of the notice.
Why SMEs should care
Open Contracting Partnership, in an article published 3 March 2026, reported that contracts awarded to at least one SME reached 73% in below-threshold open competitions, compared with 61% across open tenders. That is an attribution and date-specific data point, not a TenderReader performance claim. It says the open below-threshold market is structurally relevant to SMEs.
The same OCP article also warned that SMEs lose out on direct awards: it reported 36% of direct awards and 46% of below-threshold without-competition awards going to at least one SME. The lesson is not 'bid everything below threshold'. The lesson is that open competition is where small suppliers need visibility, fit filtering, and disciplined pack reading.
What to watch in a below-threshold pack
- Short deadlines and light documentation that still hide mandatory insurance or certificates.
- Pricing schedules that transfer uncertain volumes to the supplier.
- Buyer portals that hold attachments away from the public notice.
- Local or reserved-competition wording that changes who can bid.
- Contract terms that feel standard but still affect cash flow, liability, or mobilisation.
FAQ
Are below-threshold tenders only on Contracts Finder?
No. Find a Tender says new UK above- and below-threshold notices are published on Find a Tender from 24 February 2025, except below-threshold in Scotland.
Does 73% mean SMEs will win most below-threshold tenders?
No. It is an OCP-reported share of contracts awarded to at least one SME in below-threshold open competitions, published 3 March 2026, not a win prediction for any supplier.
Should I bid every below-threshold opportunity?
No. Use fit, eligibility, evidence, margin, risk, and deadline checks before writing a response.