European Contract Directives (and the Regulations through which they are implemented) are rules that govern all public sector contracts. There are different requirements depending on the value, type and nature of the contract.
EC (European Commission) financial thresholds apply to all contracts with an aggregate value at or above a specified amount. These amounts are subject to change every two years. The EC (European Commission) financial thresholds specified as at 1 January 2012 are as follows:
Services: £173,934 goods, materials, vehicles, plant, equipment, building maintenance, consultancy.
Works: £4,348,350 construction contracts, building, engineering.
The European Procurement rules are intended to support fair and non-discriminatory competition throughout the European Union and compliance with international agreements. Procurement activity under the rules must be conducted in a manner that is transparent and consistent with these objectives.