European Commission proposes new Public Procurement Act

The European Commission has proposed a new Public Procurement Act to replace the three existing EU directives for public procurement, utilities, and concessions with a single, directly applicable regulation. The proposal aims to reduce administrative complexity, harmonize fragmented digital systems across member states, and increase flexibility for small and medium-sized enterprises.

A major shift in the proposal is the move away from selecting contracts based solely on the lowest price. Instead, the new rules mandate that quality-related indicators must carry a minimum weight of 30% in selection methodologies, rising to 50% for labor-intensive contracts. This change is intended to prioritize long-term societal benefits, including sustainability, social value, innovation, and security.

The European Construction Industry Federation (FIEC) has expressed support for simplification and digitalization, such as a single European digital portal, but has called for careful evaluation regarding how the regulation interacts with national laws. The proposal now moves to the European Parliament and the Council of the European Union for legislative review. If approved, the new rules are expected to be implemented two years after the regulation is finalized.