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Lifecycle Management Group Ltd
Unipart House,
Garsington Road,
Cowley, Oxford,
OX4 2PG

Tel: 01865 340 800
Fax: 01865 340 829
E-mail: info@lifecycle.co.uk


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Can we modify contracts during their term?

Once a contract has been let, circumstances often lead Trusts to want to modify the contract in some way. This note outlines when, and how, contracts may be modified without the need for a new procurement procedure.

Modification of contracts, including changes in value of up to 10%
Unless the modification changes substantially the nature of a contract, changes of up to 10% in total contract value are permissible. The total value of all changes must total no more than 10%. It is not permissible to increase the contract value by 8% and then later increase it by 5%.

A modification of a contract shall be considered substantial where:

  1. The modification renders the contract agreement different to the originally concluded contract substantially.
  2. The modification introduces conditions which, had they been included in the initial procedure, may have allowed for the admission of other candidates or attracted additional participants.
  3. Where the modification changes the economic balance in favour of the contractor, not provided for in the initial contract or framework.
  4. Where the modification extends the scope of the contract considerably.

Modification of contracts, including changes in value of up to 50%
Contracts may be modified up to a maximum 50% increase in value if:

  1. Additional services have become necessary. These were not included in the initial procurement and a change in contractor would cause significant inconvenience or substantial duplication of costs for the contracting authority.
  2. The modification could not have been foreseen by the contracting authority and it doesn’t alter the overall nature of the contract.

Substantial modification of contracts, not limited to a 50% increase in value
The limitations on modifying a contract are removed if the potential modifications, irrespective of their monetary value, have been detailed in the procurement documents in a clear, precise and unequivocal way. This may include price revision clauses or options provided they:

  1. State the scope and nature of the possible modifications or options as well as the conditions under which they may be used.
  2. Do not alter the overall nature of the contract.

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We offer a free opportunity assessment for NHS Trusts. We’ll work with you to quickly identify any opportunities and outline how we can exploit them. Just let us have your contact details and we’ll be in touch as soon as possible to arrange a brief introductory meeting.

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We produce a series of easily digestible 60-second briefings on a range of topics – from procurement regulations to changes in accounting treatment for finance arrangements. Subscribe now and we’ll send you the latest briefings.


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Online Regulation 84 portal.

We have partnered with Mills and Reeve, the leading procurement lawyers, to create a guided wizard that makes certain you’re compliant with Regulation 84. It also includes a wizard to help you select the correct procedure for any procurement.

The portal is in the final stages of production and will be launched soon. If you’d like free access, just let us have your details and we’ll send you a link as son as it’s done.


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Tell me more

If you’d like to find out how we can help your Trust, or your department, develop robust and effective replacement planning for medical devices, just complete the form and we’ll be in touch to explain how we can help.