About maximum contract values

The maximum contract value is the upper limit of the amount (not including VAT, if applicable) that can be spent on developing a solution to the Challenge through CivTech, over the whole life of the project. This amount includes the value of contracts awarded to participants through the Exploration Stage (£5,000 + VAT per team) and Accelerator (Up to £35,000 + VAT per team).

If the Challenge Sponsor wishes to continue development of the solution beyond the CivTech Accelerator, they may negotiate one or more Pre-commercial Agreements (PCA) with the successful team or teams. The cumulative value of those PCAs cannot exceed the maximum contract value, minus any amounts already spent during Exploration and the Accelerator.

Normally three teams are selected for the Exploration Stage, one of which will proceed to the Accelerator but in exceptional circumstances these numbers may be higher. For example, a Challenge with a maximum contract value of £650,000 where four teams are selected for the Exploration Stage (4 x £5,000 = £20,000) and two are taken through to the Accelerator (2 x £35,000 = £70,000) would leave up to £560,000 available to fund Pre-commercial Agreements.

While the majority of CivTech Challenges do result in a PCA, and companies often continue working with their Challenge Sponsor well beyond the Accelerator, no guarantees can be given that any or all of the published maximum contract value will be committed to continued development of the solution. Applicants should also bear in mind that when a Pre-commerical Agreement is successfully negotiated every effort is made to conclude the contractual work in good time, but teams sometimes need to plan for a gap in funding and product development between the Accelerator and PCA stages.

You can find out more about the various stages of the CivTech process here.