Procurement procedure

Contract Performance Notice

A PA 2023 notice published when significant performance issues arise during contract delivery; feeds the public supplier conduct record.

Michael Kitt, Founder of KimonBidsMichael Kitt··Procurement procedure

Definition

A Contract Performance Notice is a Procurement Act 2023 notice published when significant performance issues arise during contract delivery. It records what went wrong, when, and what action was taken. Contract Performance Notices form part of the broader PA 2023 transparency regime and feed the public supplier conduct record: sustained or material failures contribute to a public history of supplier performance that contracting authorities can consider in future procurement decisions.

How it works in practice

A Contract Performance Notice is triggered by specific events: material breach of contract, significant under-delivery against KPIs, termination, or formal performance improvement measures. Routine KPI variation does not trigger a notice; only material or recurring issues do. The notice records the nature of the issue, the actions taken (performance improvement plan, contract management escalation, service credits), and the eventual resolution. Once published, the notice is visible alongside the supplier's other transparency notices, contributing to the public conduct record. PA 2023 also empowers contracting authorities to take past supplier conduct into account in subsequent procurements: a supplier with a string of Contract Performance Notices may face additional scrutiny or exclusion from future opportunities. The regime is intended to strengthen accountability without creating a punitive environment for routine performance variation; the threshold for publication is material or recurring issues, not isolated minor variations. For suppliers the practical implication is that bid-stage KPI commitments are now visibly enforced: under-promising and over-delivering builds a positive conduct record; over-promising and under-delivering builds a negative one. The KimonBids contract management module tracks KPI performance against bid commitments and surfaces emerging issues before they reach Contract Performance Notice threshold.

Common questions

When is a Contract Performance Notice published?

When significant performance issues arise: material breach of contract, significant under-delivery against KPIs, termination, or formal performance improvement measures. Routine KPI variation does not trigger a notice; only material or recurring issues do. The publication threshold is judgemental and contracting authorities are still developing consistent practice.

How does a Contract Performance Notice affect future bids?

It contributes to the public supplier conduct record. PA 2023 empowers contracting authorities to take past supplier conduct into account in subsequent procurements. A single isolated notice is unlikely to be decisive; a pattern of notices across multiple contracts can lead to enhanced scrutiny or exclusion grounds.

Can I challenge a Contract Performance Notice?

The notice content can be challenged on factual grounds through the contract dispute mechanism. If the notice misrepresents events or omits supplier evidence, the supplier should formally request a correction or addendum. Sustained disputes can be raised through the relevant ombudsman or regulatory body depending on sector.

Related terms

Related terms

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