The Government approved the 17th amendment to the Public Contracts Code, through Decree-Law No. 177/2026, of September 4, with application from October 1, 2026. This is the most profound revision in recent years, which aims to reduce formalities, eliminate bureaucratic obstacles and accelerate the execution of public investment and EU funds. Adolfo Mesquita Nunes, partner at Pérez-Llorca, analyzed the main changes in five questions and answers.
The revision was considered necessary because public procurement has become too slow and complex. The European Commission is also working on a profound reform of the European framework, through a regulation that should replace the three public procurement directives of 2014. In Portugal, a defensive public procurement culture has consolidated, which favors very objective criteria even when they poorly capture the value of proposals, and makes little use of more flexible instruments.
The changes in the values of direct awards and prior consultations are those that produce the most immediate effect. In public works contracts, direct awards rise from 30 thousand to 150 thousand euros and prior consultations from 150 thousand to one million. In goods and services, direct awards go from 20 thousand to 75 thousand and prior consultations from 75 thousand to 130 thousand. These changes allow for accelerating the procurement process without dispensing with rigor in the selection and the duty to provide justification.
For public works and large projects, spontaneous initiatives and the new prior consultation for certain projects financed by EU funds, public housing or digital transformation stand out. Spontaneous initiatives allow a company to present studies and solutions for a public need. Adolfo Mesquita Nunes warns that the challenge is operational: it is necessary to create clear guidelines, procedural document templates, training and technical support for contracting authorities so that these instruments are not left unused, as has happened with others that already existed in the Code.
