Search

How can we help?

Icon

Challenging a procurement award: what are the possible outcomes?

Losing a tender is never a welcome experience, especially when significant time and money has been expended on preparing your bid. In some cases, there may be good reasons to challenge the outcome legally. But what are the possible outcomes of challenging the award of a public contract?

The legal remedies available under the Public Contracts Regulations 2015 (the “Regulations”) depend on whether the public body has yet entered into the contract with the winning bidder or not:

If the contract has not yet been entered into, the court can order …

  1. That a document be amended or corrected eg. that criteria in the Invitation to Tender documents which breach procurement law must be amended, or mathematical errors in the evaluation documents must be corrected.
  2. That a decision made by a public body be set aside eg. a decision to award the contract to a particular bidder, or a decision to disqualify a particular bidder.
  3. That the public body should pay the unsuccessful bidder damages. Damages are usually based on the loss of profits the unsuccessful bidder would have made on the contract. In light of recent case law, damages may only be available to bidders if the breach of the Regulations the public body has committed is sufficiently serious.

If the public body has already entered into the contract with the winning bidder, the court can order …

  1. Damages, on the same basis as above.
  2. Where there has been a very serious procedural breach of the Regulations, that a contract is declared ineffective. brought to an end and treated as if it never existed. Declarations of ineffectiveness are very rarely available.

The legal remedies available under the Public Contracts Regulations 2015 (the “Regulations”) depend on whether the public body has yet entered into the contract with the winning bidder or not

There are also some possible outcomes not catered for in the Regulations …

  1. The public body may decide to abandon the tender. In almost all cases the Invitation to Tender documents will reserve the right for the public body to abandon a tender and will not oblige the public body to enter into a contract with the winning bidder.
  2. The public body may be ordered to enter into a contract with you, the unsuccessful bidder who ought to have won, had there not been a breach of the Regulations. This is not a remedy provided for in the Regulations, but the court does have a general equitable power outside of the Regulations to grant injunctions forcing a party to do something. However, in a procurement case this power will only be exercised in exceptional circumstances.

It is important for bidders embarking upon a procurement challenge to consider the available remedies and decide whether winning the contract is vital to them, or whether they would be content with a financial remedy. This will inform the action to be taken and the deadlines to be met.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

Pub
  • 15 July 2026
  • Litigation and dispute resolution

ICC Arbitration Rules 2026 overhaul: The end of Terms of Reference and future trends – Episode 3

In this final episode, Jack Hobbs (Clarkslegal) and Christopher Howitt (Three Stone) discuss the impact of the ICC Arbitration Rules 2026 overhaul, focusing on the end of Terms of Reference. Hear expert insights and practical tips for adapting to the new rules.

art
  • 15 July 2026
  • Employment

New guidance on interim relief: More applications, same high threshold

In certain limited unfair dismissal claims (such as those for automatic unfair dismissal relating to a protected disclosure) claimants can apply for interim relief. This is an emergency measure which essentially prevents a dismissal from taking effect until the claim has been heard.

Pub
  • 09 July 2026
  • Litigation and dispute resolution

The Arbitration Act 2025 – Factsheet

This factsheet outlines the major reforms and key developments introduced by the Arbitration Act 2025, including updates on summary disposal, jurisdictional challenges, emergency arbitrators, arbitrator disclosure duties, and governing law in arbitration proceedings.

art
  • 09 July 2026
  • Immigration

Right to Work Checks are changing from 1 October 2026: Is your business ready?

The Home Office’s new rules, effective 1 October 2026, will overhaul right to work checks and raise the risk of civil penalties for UK businesses.

art
  • 08 July 2026
  • Privacy and Data Protection

ICO prosecutes employee under the Data Protection Act for forwarding client data to his personal email address

The issue of employees taking confidential business information or personal data when moving to a new employer remains a significant concern for businesses.

Pub
  • 07 July 2026
  • Litigation and dispute resolution

Accelerating arbitration: Expedited procedures and key changes in the new ICC Rules – Episode 2

In episode 2, Jack Hobbs (Clarkslegal) and Christopher Howitt (Three Stone) explore how the latest expedited and highly expedited procedures under the ICC Arbitration Rules 2026 are transforming the landscape of dispute resolution.