PPR 2025: what changed for contractors
Last updated: · 4 min read
- PPR 2025 took effect on 28 September 2025. It has 154 rules and 21 schedules and replaces PPR 2008.
- BPPA says the 10% plus-or-minus price cap on national works was removed, and e-GP is now mandatory for all public procurement. But the LTM works band of 5% around the estimate and the rule that bids more than 10% above the estimate are non-responsive in the low-bid screening still apply.
- There is a formula for weeding out abnormally low bids, and the real owner of a winning firm must be disclosed.
- Money limits and deadlines sit in the schedules. What your tender document says is what counts.
If you have been bidding for a few years, PPR 2008 is second nature. The Public Procurement Rules 2025 now take its place. Here is what differs and what to watch when you bid.
This is not legal advice. Sources are listed at the end. Before you bid, check your own tender document and TDS.
The basics
According to BPPA's own news item, the rules took effect on 28 September 2025. They have 154 rules and 21 schedules and replace PPR 2008. The Act was amended too, by an Ordinance in 2025, and BPPA's site also lists a further Amendment Act gazetted in 2026. Check BPPA for the latest text of the Act.
Changes BPPA lists
BPPA's summary names these as the major changes:
- The 10% plus-or-minus price cap on national works procurement is removed. Caution: the 5% band around the estimate in LTM works (rule 80(2)) and the rule that bids more than 10% above the estimate are non-responsive (Schedule-18, paragraph 7) are still there.
- e-GP is mandatory for all public procurement.
- The actual beneficial owner of the winning firm must be disclosed.
- Sustainable Public Procurement (SPP) and a procurement strategy for each office come into the rules.
- Physical services are recognised as a separate category.
- Framework agreements and negotiation are expanded.
- A Debarment Board is set up.
What I checked in the gazette myself
Low bids. Schedule-18 gives a formula for weeding out abnormally low bids in domestic procurement, referred to from rule 118(25) and (26). More in the low bid post.
Beneficial ownership. Under rule 49(2) and Schedule-2, for contracts above Tk 10 lakh the contract details, with beneficial ownership, are published on BPPA's website or portal.
A lane for small firms. Under rule 80(1)(ঘ) (clause 4), an office shall reserve at least 25% of its annual operating budget allocation (special purchases aside) for micro and small enterprises, women-owned enterprises and new enterprises, through limited tenders. Schedule-2 defines micro and small as having had contracts worth no more than Tk 1 crore in total in the previous 3 years, and new as having registered the first business within the previous 2 years.
Tender security. Rule 31(3) says security is a rounded fixed amount, never a percentage written in the document. Schedule-2 caps it within 3% of the estimate. See the security post.
The clock after the NOA. The time to issue the NOA, give the performance security and sign the contract is in Schedule-2. See NOA to contract.
What to do
- Read the tender document first. Conditions, security amounts and deadlines are written there.
- Check your rate. Low bids are now screened by formula, so guessing far below the pack can get you thrown out. See what rates won before on the rates page.
- Filter before you bid. Method, size and district are separate filters on all tenders.
- Open the Bid Brief on a tender page. Security, closing and eligibility sit in one place. See the sample brief and the pricing page.
More in this series: OTM, LTM, RFQ, DPM, qualification, reasons a bid is rejected, complaints and appeals.
Sources
- Public Procurement Rules 2025, gazette of 28 September 2025 (PDF, BPPA)
- BPPA news: PPR 2025 in force (30 September 2025)
- BPPA: Public Procurement (Amendment) Act 2026 gazette
- BPPA: list of procurement rules
Common questions
- When did PPR 2025 take effect?
- On 28 September 2025. According to BPPA, the amended Public Procurement Act 2006 took effect the same day.
- Is PPR 2008 now void?
- BPPA says the new rules replace PPR 2008. For any tender already running, check your tender document to see which rules apply.
- Is every tender now on e-GP?
- According to BPPA's summary, e-GP is mandatory for all public procurement.
Rules and amounts change now and then. Check the latest rules on e-GP or the BPPA site before you bid.
Source: eprocure.gov.bd