The Special Prior Consultation in the New Public Contracts Code

Portuguese Official Gazette on 4 September 2026 and effective from 1 October 2026. The reform introduces the digitalisation of procedures, raises procurement thresholds, and seeks to address a long-standing issue: the excessive bureaucracy and delays that hinder public investment.

Among the various changes introduced, particular attention should be given to the new Article 127-B, which defines the scope of the “special prior consultation” procedure. At first glance, it may appear to be just another procurement mechanism within the CCP framework. In practice, however, it has the potential to become a decisive tool in accelerating municipalities’ response to one of the most pressing challenges facing Portuguese society: access to adequate and affordable housing.

The special prior consultation is designed as a simplified procurement procedure requiring the invitation of at least five entities, rather than three as in the standard prior consultation procedure. It does not constitute a general relaxation of procurement rules. Its use is subject to two cumulative conditions: the estimated contract value must remain below the applicable European thresholds and, in any event, below €2,000,000, and the contract must fall within a closed list of specific purposes. Housing occupies a prominent place among these purposes, as the provision expressly covers public or cost-controlled housing projects, as well as properties whose management was transferred to municipalities under the decentralisation process established by Law No. 50/2018 of 16 August and subsequent legislation.

The practical impact is significant. Until 1 October 2026, municipalities were limited to €130,000 under the prior consultation procedure and €75,000 under direct award procedures. Since the European threshold for public works contracts substantially exceeds €2,000,000, that amount now becomes the effective ceiling. Municipalities may therefore procure the construction or rehabilitation of affordable housing through consultation with five entities, without launching a public tender, for amounts up to almost fifteen times higher than the previous limit. For the acquisition of goods and services, the threshold is increased to the European limit applicable to non-central contracting authorities (€216,000), which also represents a substantial increase compared with previous limits.

This solution is not entirely new. It permanently incorporates a mechanism that was previously temporary and more restrictive, having originally been introduced by Law No. 30/2021 of 21 May as part of the special public procurement measures adopted in the post-pandemic context and now repealed. It is noteworthy that, in the transition from an exceptional to a permanent framework, housing has emerged as one of the areas expressly prioritised.

Article 127-B contains several provisions, at least three of which are directly linked to housing, demonstrating what may be described as a clear housing-oriented purpose.

Greater procedural flexibility does not eliminate oversight obligations. The general principles of public procurement, including competition, transparency and equal treatment, remain fully applicable, as does the requirement to justify the selection of the entities invited to participate. The provision’s reference to the special public tender regime also introduces certain simplifications, such as the exemption from providing reasons for not dividing contracts into lots, the reduction of both prior hearing and challenge periods to three days, and the possibility of waiving performance guarantees where a lack of liquidity is duly demonstrated.

Nevertheless, a note of caution is appropriate. €2,000,000 is not an insignificant amount for most municipalities and parish councils. The benefits of increased speed and flexibility must therefore be accompanied by stronger internal control mechanisms, otherwise public confidence in the procurement system may ultimately be undermined.

Article 127-B is consequently one of the most noteworthy developments introduced by this revision of the CCP. By permanently establishing a procedure tailored to public housing projects and the rehabilitation of municipal properties, it acknowledges that procedural bureaucracy should not constitute an additional obstacle to addressing the housing challenges currently faced by local authorities.