The Procurement Act 2023 (the Act), which came into force in February 2025, has reshaped how public sector organisations, including housing associations, use frameworks to procure goods and services. The latest Cabinet Office guidance (October 2025) clarifies key changes and introduces new flexibilities designed to streamline procurement and improve supplier access.
Contracting authorities have a number of options for procuring goods and services under the Act, including:
- Standard frameworks – fixed term (usually up to 4 years), closed to new suppliers once awarded. Contracts will either be awarded usually through the competitive selection process. Contracting authorities are permitted to directly award a framework under sections 41 or 43, provided the framework is not an open framework (section 49(10)).
- Open frameworks – allow successive frameworks to be awarded on substantially the same terms; reopened at least twice during the scheme’s lifetime (max of 8 years); new suppliers can apply to join at each reopening.
- Light touch frameworks – designed for ‘light touch’ services as outlined in Schedule 1 of the Procurement Regulations 2024, such as health and social care. These frameworks offer greater flexibility, with no compulsory competitive selection process, no fixed maximum duration, and fewer procedural obligations.
Housing associations are permitted to award call-off contracts through frameworks that have been formally established by another contracting authority. For instance, if a housing association intends to utilise a framework created by an external organisation, that framework must originate from a recognised contracting authority such as a centralised procurement body or local authority. It is the responsibility of the housing association to verify that the framework it relies on for a call-off contract has been properly set up by a legitimate contracting authority.
What’s New?
1. Terminology Update
Frameworks are no longer called “framework agreements.” The term has been simplified to just “frameworks”.
2. Open Frameworks Introduced
A significant innovation is the open framework model. These allow new suppliers to join at set intervals – ideal for dynamic markets like housing repairs, retrofit, and care services.
- Must reopen at least once in the first 3 years and every 5 years after.
- Maximum duration: 8 years.
- Successive frameworks must be on substantially the same terms.
3. Implied Supplier Exclusion
Contracting authorities can now automatically exclude suppliers who become ineligible even if no further competition is held.
4. Flexible Conditions of Participation
Authorities can apply conditions of participation at the call-off stage, not just during framework setup. This allows more tailored contract awards.
5. Mandatory Contract Award Notices
Transparency has been strengthened as a contract award notice must be published before awarding any public contract under a framework. This was optional under previous rules.
6. Charging Fees
Authorities may charge suppliers a fixed percentage fee for call-off contracts – but this must be disclosed upfront and be built into the framework terms.
7. Call-Off Rules
Call-off contracts must follow the selection process set out in the framework. Excluded suppliers cannot be awarded contracts.
What do these changes mean for housing associations?
These changes offer more flexibility and control for housing associations. Open frameworks, in particular, support long-term procurement strategies while keeping supplier pools fresh and competitive.
If you’re reviewing your procurement policy or considering how best to align your framework strategy with the Act, we’re here to help. Whether you’re exploring open frameworks, updating internal procedures, or planning future procurements, our specialist team can provide you with support and guidance. Reach out to our Social Housing team.