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Changes in public tender laws

1 Feb 06

New rules said to improve prospects for smaller companies

New regulations came into effect yesterday which should help smaller companies compete for public sector work.

It is now a legal requirement that all contracts, other than those of a very low value, should normally be publicly advertised.

Previously, only contracts worth over £100,000 had to be advertised.

A new version of the Public Procurement Regulations, introduced under EU directive, has made amendments to the procedure and also made it easier for tendering exercises to be conducted online.

Andy Willox, Scottish policy convener for the Federation of Small Business, said: "Scotland's public sector has been allowed to be too complacent in terms of making small businesses aware of the opportunities that exist."

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