Portugal’s Public Procurement Code changes in October 2026: key changes for companies and public entities
One of the most significant revisions of recent years to the Public Procurement Code (CCP) has been published.
Decree-Law No. 177/2026 of 4 September carries out a broad revision of the regime, seeking to simplify procedures, reduce red tape, introduce new digital tools and make public procurement faster and more efficient.
The new rules generally enter into force on 1 October 2026 and apply to procedures launched from that date and to contracts concluded following those procedures.
The reform is relevant not only to public entities but also to all companies that contract, or intend to contract, with the State, municipalities and other contracting authorities.
1. Significant increase in the thresholds for direct award and prior consultation
One of the changes with the greatest immediate impact is the increase in the amounts up to which simplified procedures may be used.
For public works contracts, direct award may now be used for contracts with an estimated value below €150,000, whereas the previous limit was €30,000.
Prior consultation, in turn, becomes admissible for works contracts with an estimated value below €1,000,000, compared with the previous limit of €150,000.
For contracts for the lease or purchase of movable goods and the purchase of services:
- the direct award limit increases from €20,000 to €75,000;
- the prior consultation limit increases from €75,000 to €130,000.
The change is particularly significant for public works contracts.
In practice, a much wider range of contracts may now be awarded through simpler and faster procedures.
2. From “contract value” to “estimated contract value”
The new regime replaces the concept of “contract value” with that of “estimated contract value”.
The calculation is now based on the estimated price to be paid by the contracting authority and by third parties, including other consideration or economic benefits directly related to the performance of the contract.
The change brings the Portuguese regime closer to the terminology and logic used in European Union law.
More importantly, the increase in the thresholds for simplified procedures makes the correct calculation of this value even more relevant.
The use of direct award or prior consultation depends precisely on that calculation, and the rules designed to prevent the artificial splitting of contracts remain in place.
3. A special prior consultation is created
The revision introduces a new procedure: the special prior consultation.
This procedure may be used in certain situations for contracts whose estimated value is below the European thresholds and, at the same time, below €2,000,000.
The contracting authority must invite at least five economic operators.
The solution seeks to create an intermediate model between the most simplified procedures and traditional tenders, while maintaining a meaningful level of competition.
4. Greater flexibility in public tenders
The new CCP also allows certain public tenders to be made more flexible when the estimated contract value is below the European thresholds.
The idea is to allow contracting authorities to adapt certain procedural aspects where this contributes to simplification, efficiency or speed.
Flexibility does not, however, mean an absence of rules.
The fundamental principles of public procurement must still be respected, namely competition, equal treatment, impartiality, transparency and proportionality.
5. Artificial intelligence expressly enters public procurement
One of the most topical new features of the reform is the establishment of a genuine principle of digital public procurement.
The new regime allows and promotes the use of digital systems, including artificial intelligence tools, at the various stages of the award and performance of public contracts.
The use of these tools must, however, respect specific safeguards, namely:
- transparency;
- explainability;
- security;
- personal data protection;
- protection of trade secrets;
- human oversight;
- interoperability with public systems.
Technology can support the Administration in analysing and managing procedures, but it does not replace the responsibility of the competent bodies for the administrative decision.
6. Companies may submit unsolicited proposals
Another relevant new feature is the possibility for any economic operator to submit an unsolicited proposal to carry out a particular service or project that may be of interest to a public entity.
Such an initiative may lead the contracting authority to subsequently launch a procurement procedure.
However, the company that put forward the idea does not automatically obtain the contract.
Nor does it acquire any right of preference.
Private initiative can therefore serve as a starting point for a public project, but the award remains subject to the applicable competition rules.
7. Procedures reserved for startups
The reform also allows certain procedures to be reserved for startups recognised under the law.
This possibility applies to certain contracts for the purchase or lease of movable goods and the purchase of services with a value below the European thresholds, provided there is no certain cross-border interest.
The measure aims to make it easier for young and innovative companies to access public procurement.
For tech startups in particular, it may open up opportunities that were previously hard to reach when competing with larger economic operators with an established public procurement track record.
8. Faster procedures in emergency situations
The new regime also strengthens public entities’ ability to respond in emergency situations.
Simplified direct award may now be used for certain works needed to rebuild or rehabilitate affected areas and for measures to support individuals and legal entities in emergency situations.
The use of direct award in cases of extreme urgency is also clarified.
9. Changes to contract performance
The reform is not limited to the award stage.
The rules applicable during the performance of public contracts are also revised.
One of the changes seeks to draw a clearer distinction between:
- a modification of the contract;
- restoring the contractual balance following an abnormal and unforeseeable change in circumstances.
The distinction is of considerable practical importance, especially in long-term contracts and in works contracts subject to extraordinary cost variations.
The new regime also allows, in certain situations, compensation arising from extraordinary circumstances to be set by agreement between the parties.
10. Arbitration becomes truly voluntary
The reform also changes the dispute resolution regime.
Arbitration can no longer be imposed as a condition for taking part in a public procurement procedure.
The use of arbitration thus becomes truly voluntary.
Conciliation committees are also reinstated as a mechanism to prevent and resolve disputes more quickly.
What should companies do?
Companies that regularly contract with public entities should use the period before the new rules come into force to review their internal procedures.
In particular, they should keep track of:
- the new direct award and prior consultation thresholds;
- the calculation of the estimated contract value;
- the special prior consultation;
- the new opportunities for startups;
- the rules on unsolicited proposals;
- the use of digital systems and artificial intelligence;
- the changes concerning contract performance and modification.
The reform aims to make public procurement simpler.
But greater administrative flexibility also requires greater rigour in applying the rules on competition, transparency and equal treatment.
Frequently asked questions
1) When do the new CCP rules come into force?
Generally, on 1 October 2026.
2) Does the direct award limit for works contracts increase?
Yes. The limit rises from €30,000 to €150,000.
3) And prior consultation for works contracts?
The limit rises from €150,000 to €1,000,000.
4) Can the Public Administration use artificial intelligence in procedures?
Yes. The new regime expressly provides for the use of digital systems and artificial intelligence, subject to safeguards of transparency, human oversight, security and data protection.
5) Can a company spontaneously submit a project to a public entity?
Yes. Such an initiative may subsequently give rise to a procurement procedure, but it does not give the company any automatic right to the award.
How can we help?
URB Law Services advises companies on public procurement and administrative law, including the analysis of procedures, public contracts, works contracts, contract performance and litigation.
The entry into force of a new regime is also an opportunity to review internal procedures and identify new opportunities to contract with public entities.
Contact us to find out more
