Amendments to the Finnish Public Procurement Act in 2026 – Key changes

The Finnish Public Procurement Act is facing its most significant reform in a long time. On 5 February 2026, the Government published its much-debated Government Proposal (HE 2/2026). The reform introduces three main changes: market study requirement for large contracts, obligation to split contracts into parts, and stricter in-house rules. This article outlines the key amendments and their practical implications.

Mandatory market studies for contracts over EUR 10 million 

One of the most significant changes concerns procurements worth over EUR 10 million (excl. VAT). Before initiating the procurement procedure, the contracting authority will be required to either conduct a market study or assess the suitability of the chosen procurement model. Previously, market studies and assessments of procurement models were voluntary and used only occasionally. Under the new rules, contracting authorities must document that they have carried out at least one of these measures before commencing the procurement procedure.​​

A market study or preliminary market consultation means that the contracting authority systematically gathers information on the market before carrying out the procurement. This may take the form of meetings, questionnaires, webinars or written requests for information addressed to potential suppliers. The aim is to help the contracting authority understand what is available on the market, what kinds of solutions exist and how to formulate the requirements to achieve the best possible competition.​​

Splitting contracts into lots: new rules for EU-threshold procurements 

In addition to market studies, the reform introduces new requirements for the structure of procurements. The Government proposes that contracting authorities should, generally, be obliged to divide contracts exceeding the EU thresholds into appropriate lots. The contracting authority must actively provide reasons for any decision not to divide the contract into lots. If there are good reasons not to split the contract - for example real risks tied to coordination - it is acceptable not to split contracts into lots.​ 

The underlying objective of the amendment is to facilitate the participation of small and medium-sized enterprises (SMEs) in large procurements. This also means that companies specialised in narrow niche areas will have better opportunities to win parts of large contracts without having to manage the entire procurement scope.​​ By enabling broader participation by SMEs, contracting authorities can diversify their supplier base, reduce their dependence on large individual suppliers, and potentially achieve greater value over the life cycle of contracts.

Only one tender? You may need to re-tender 

If the contracting authority receives only one tender in an open procedure for a contract above the EU thresholds, the procurement must, as a rule, be cancelled and re-tendered. However, the obligation to re-tender will not apply if the contracting authority has carried out a market study or if the contract has been divided into lots.​

The obligation may also be waived for particularly weighty reasons, for example where the subject-matter of the contract is exceptionally complex or where there is only a very limited number of suitable suppliers on the market. The contracting authority will be required to organise a new tender procedure only once.​

From a European perspective, the obligation to re-tender in situations where only one tender is received is relatively rare and stems from the risks arising when only one supplier submits a tender. The requirement is intended to ensure that genuine competition is achieved in public procurement. For contracting authorities, this may mean longer timelines and, to some extent, additional work.​

The 10 percent rule for in-house procurements

The new Act tightens the conditions under which a company can be regarded as an in-house entity (sidosyksikkö). One of the most significant changes is the introduction of a minimum ownership requirement of 10 percent in relation to in-house procurements.​

The contracting authority’s ownership share in the in-house entity must be at least 10 percent for the authority to award contracts directly without tendering.​ Under the current rules, some in-house entities have ended up with dozens of public sector owners, each holding minimal stakes. In practice, this has allowed contracting authorities to bypass tendering despite having no real control over the entity. The new ownership threshold is designed to close that gap.

There is an exception for subsidiaries or comparable entities that have been established solely for the purpose of providing a narrowly defined statutory service or an information system directly and exclusively related to the provision of such a service. This exception applies only to entities whose annual turnover does not exceed EUR 1 million.​​

The reform opens opportunities for private suppliers, as many procurements that have previously been carried out through in-house entities will be brought to the market and subjected to competitive tendering. The most substantial changes will be seen in catering, cleaning and facility management services, as well as in ICT services. At the same time, municipalities fear that they will lose volume benefits and expertise, which is causing tensions.​

Preparing for the changes 2026-2027 

The amendments will enter into force in stages. The Act is mainly intended to enter into force in spring 2026. The provisions on the division of contracts into lots and on cancelling the procurement where only one tender is received will apply from 1 October 2026. The 10 percent minimum ownership requirement for in-house entities will apply from 1 July 2027.​

These amendments will affect contracting authorities and suppliers in very different ways, and the staggered timeline adds another layer of complexity. Understanding which rules apply to you, and when, is essential. Our public procurement team at DKCO is following the legislative process closely. Contact us to discuss how the reform impacts your organisation and what steps to take next.