Estimated contract value

The buyer’s estimate of what the whole contract will cost, including option years. It decides which rules and thresholds apply, and hints at the budget.

Also called: Estimated value, Contract value

Related terms

Procurement threshold

A contract value above which stricter rules apply, such as open advertising, trade-agreement rules or longer deadlines. Below it, buyers can often invite a few quotes directly.

Option period

Extra time a buyer may add to a contract after the first term, at its choice, such as “two years plus two one-year options”. Options make a contract worth more than its first term.