Amendment to the Public Contracts Code

On 4 September, Decree-Law no. 177/2026 was published, introducing a broad new revision of the Public Contracts Code (“PCC”), with the stated aim of simplifying, clarifying and updating the public procurement regime.

The reform covers several dimensions of the regime, ranging from the principles and planning of procurement to the estimated contract value and the choice of procedures, as well as the revision of the thresholds for recourse to direct award and prior consultation, the reorganization of the grounds for exclusion, and the integration into the PCC of simplified procurement solutions previously set out in special legislation.

The instrument enters into force on 1 October 2026 and applies to contract formation procedures initiated after that date, as well as to the performance of contracts concluded following such procedures. The rules on the objective modification of contracts and on the alternative resolution of pre-contractual and contractual disputes apply to procedures under way and to contracts being performed on 1 October 2026.