PPN 013: Using standard contracts · first published 17 February 2025
PPN 013 tells central government departments, executive agencies, and non-departmental public bodies ("in-scope organisations") that they must use one of three Government Commercial Function standard contracts — the Model Services Contract, the Mid-Tier Contract, or the Short Form Contract — rather than writing bespoke terms. This replaces the earlier PPN 08/23 and aligns with the Procurement Act 2023, which applies to procurements started on or after 24 February 2025. The April 2025 update expanded the Short Form Contract so buyers can now use it for non-complex goods and services above the standard procurement thresholds, not just below them, where proportionate. For SMEs, this means the terms and conditions you encounter on central government contracts should become more predictable and consistent, reducing the legal review burden each time you bid. Other public sector bodies (e.g. NHS, local councils) are encouraged — but not required — to follow the same approach.
WHO THIS APPLIES TO
THE ENKII VIEW
Standardised contracts are a genuine SME win: instead of facing a different bespoke contract on every bid, small businesses should increasingly see familiar, predictable terms, which cuts legal costs and speeds up contract review. The explicit mention of "SME access" as a risk factor that buyers must consider when choosing a contract template creates a useful lever — if a buyer is using a lighter Short Form Contract above threshold, they must have weighed whether that choice is fair to SMEs. The flip side is that the Short Form Contract is missing several clauses compared to the Mid-Tier Contract, so SMEs should check what protections (e.g. data, IP, payment terms) may be absent if a buyer opts for it on a larger deal.
1. Download and familiarise yourself with all three standard contracts (Model Services Contract, Mid-Tier Contract, Short Form Contract) from GOV.UK so you recognise the terms when they appear in a tender and can review contracts faster and cheaper.
All SMEs bidding for central government contracts — In-scope organisations must now use one of these templates as the basis for all relevant procurements rather than bespoke contracts, making these the default terms you will encounter.
2. When you receive a contract, check whether the buyer has used the Mid-Tier Contract or the Short Form Contract — if it is the Short Form, review the Short Form Contract Guidance note to identify which clauses are missing (e.g. data protection, IP, payment terms) and decide whether to request additions before signing.
SMEs bidding on central government contracts above procurement thresholds but below ~£20m — Buyers can now use the Short Form Contract above threshold; that contract 'will be missing several clauses as compared to the Mid-Tier Contract' and gaps could affect your rights on data, IP and payment.
3. If a buyer proposes the Short Form Contract on a deal above the procurement threshold, you can raise SME access as a named risk factor the buyer is required to consider — reference paragraph 9 of PPN 013, which explicitly lists 'SME access' as a risk to assess.
SMEs bidding on central government contracts above procurement thresholds — The PPN requires in-scope organisations to consider 'SME access' risks when deciding to use the Short Form Contract above threshold, giving SMEs a documented policy hook to challenge disproportionate contract choices.
4. Prepare your legal and commercial team to engage with the Model Services Contract structure, including its Business Process Outsourcing (BPO) and ICT delivery clauses, so you are ready for the formal dialogue or negotiation stage these contracts typically require.
SMEs targeting complex/high-value central government work (≥£20m or Gold-rated contracts) — The MSC 'is particularly suitable for Business Process Outsourcing and/or ICT delivery services' and will 'typically require some form of formal dialogue or negotiation' — being unprepared for this stage can cost you marks or time.
5. Confirm in pre-market engagement or clarification questions whether the buyer intends to use a government standard contract or an industry-specific contract, since the PPN explicitly permits the latter.
SMEs in construction or other industries with established standard contracts — Standard Contracts 'need not be used where a more suitable form of contract is available... such as those available for construction' — knowing which applies early lets you prepare the right commercial and legal response.
6. Send any practical feedback on the Standard Contracts to modelservicescontract@cabinetoffice.gov.uk — this is the government's stated channel for continuous improvement and is an opportunity to flag SME-specific issues.
SMEs with feedback on using the standard contracts in practice — The PPN states 'The Standard Contracts will be subject to ongoing continuous improvement and we value feedback on their use in practice', making this a real route to influence future versions.
Every rule below quotes the official document verbatim.
PPN 013 applies to all central government departments, their executive agencies, and non-departmental public bodies (in-scope organisations); other public sector bodies may apply it voluntarily. (All in-scope organisations (central government departments, executive agencies, NDPBs))
“This Procurement Policy Note (PPN) applies to all central government departments, their executive agencies and non-departmental public bodies. Such bodies are referred to as 'in-scope organisations'.”
In-scope organisations must apply the provisions of PPN 013 with immediate effect from publication. (All in-scope organisations)
“In-scope organisations must apply the provisions of this PPN with immediate effect.”
The Procurement Act 2023 and the Procurement Regulations 2024 apply to procurements commenced on or after 24 February 2025. (All in-scope organisations, procurements from 24 February 2025)
“The Procurement Act 2023 and the Procurement Regulations 2024 apply to procurements commenced on or after 24 February 2025.”
The Model Services Contract (MSC) is designed for complex services procurements and is encouraged where the likely whole-contract value is £20m or more, or where the contract is rated 'Gold' using the Cabinet Office Contract Tiering Tool. (In-scope organisations; complex/high-value services contracts ≥£20m or Gold-rated)
“Use of the MSC is encouraged where the likely contract value (over the whole of the intended contract term) is £20m or more, or where a contract is rated 'Gold' using the Cabinet Office Contract Tiering Tool.”
The Mid-Tier Contract is designed for non-complex goods and/or services procurements above the relevant procurement thresholds but below approximately £20m. (In-scope organisations; contracts above procurement thresholds and below ~£20m)
“The Mid-Tier Contract may be used where the likely contract value (over the whole of the intended contract term) is above the relevant procurement thresholds, but falls below approximately £20m.”
The Short Form Contract is designed for low-value, non-complex goods and/or services procurements below the relevant procurement thresholds. (In-scope organisations; contracts below relevant procurement thresholds)
“The Short Form Contract should be used when the likely contract value (over the whole of the intended contract term) is below the relevant procurement thresholds, unless the contract is more complex or critical, in which case, another contract, such as the Mid-Tier Contract may be used.”
From April 2025, in-scope organisations may also use the Short Form Contract for non-complex above-threshold procurements where proportionate and appropriate, within internal limits set by that organisation. (In-scope organisations; non-complex above-threshold contracts from April 2025)
“in-scope organisations may use the Short Form Contract for non-complex above-threshold procurements where it is proportionate and appropriate to do so, within limits (e.g., Cabinet Office Contract Tiering Tool tiering level (Gold/Silver/Bronze) limits; value (£) limits; use by exception only limits) put in place by that in-scope organisation.”
When deciding whether to use the Short Form Contract above threshold, buyers must consider risks including data protection, security, intellectual property rights, and SME access. (In-scope organisations using Short Form Contract above threshold)
“In-scope organisations should also consider the risks of the particular procurement (e.g., data protection, security, intellectual property rights, SME access) as well as proportionality and value.”
If the Short Form Contract is used above threshold, it will be missing several clauses compared to the Mid-Tier Contract and will likely need to be amended by introducing additional clauses. (In-scope organisations and their suppliers; above-threshold Short Form Contract use)
“If used for an above-threshold procurement, the Short Form Contract will be missing several clauses as compared to the Mid-Tier Contract, and is likely to need to be amended to work for the procurement (e.g., by introducing additional clauses from the Mid-Tier Contract to cover missing but required clauses).”
Standard Contracts need not be used where a more suitable form exists, such as a government framework, purchase-order terms for very low value procurements, or an industry-specific contract (e.g. construction). (All in-scope organisations)
“The Standard Contracts need not be used where a more suitable form of contract is available - for example, Departmental terms and conditions attached to purchase orders for very low value procurements, a government framework, or an industry-specific contract, such as those available for construction.”
The suite of Standard Contracts is explicitly designed to create a level playing field for small and medium-sized enterprises (SMEs) by reducing administration, legal costs, and negotiation time. (All suppliers, including SMEs bidding for central government contracts)
“The suite of Standard Contracts is designed to simplify the procurement process, support businesses, and create a level playing field for small and medium-sized enterprises.”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.