What are conditions of participation?
Conditions of participation are the requirements a contracting authority sets that a supplier must satisfy in order to take part in a competitive tendering procedure under the Procurement Act 2023. They test the supplier, covering matters such as legal and financial capacity and technical ability, and they must be proportionate to the nature, complexity and cost of the contract. They are the Act's version of what used to be handled through a PQQ or selection questionnaire.
Conditions of participation, explained
Conditions of participation answer a single question: is this organisation capable of performing the contract? A contracting authority may set them only where it is satisfied they are proportionate having regard to the nature, complexity and cost of the contract, and they must relate to the supplier's legal and financial capacity or its technical ability. They are assessed before or alongside the competition, so that authorities are not evaluating detailed tenders from suppliers who cannot deliver.
The Act also restricts how conditions may be framed. Requirements must not go beyond what the contract needs, an authority that asks for a particular qualification should accept equivalent qualifications, and conditions should not demand things a supplier is not required by law to hold, such as audited accounts where none are required. Requiring insurance to be in place before the contract is awarded, rather than before it starts, is the kind of disproportionate barrier the rules are aimed at.
Keep three things apart. Conditions of participation are about the supplier. Award criteria are about the tender, and decide who wins. Exclusion grounds are separate again: the Act sets out mandatory and discretionary grounds on which a supplier can be excluded, for example for certain convictions or serious poor performance, and those apply whatever conditions of participation the authority has set. Conditions for membership of a dynamic market work on similar proportionality logic but are set for the market rather than a single contract.
Key things to know
They test the supplier
Conditions of participation ask whether the organisation can perform the contract, not how good its offer is.
Must be proportionate
They may be set only where proportionate to the nature, complexity and cost of the contract.
Limited subject matter
They relate to legal and financial capacity and technical ability, not to unrelated preferences.
Accept equivalents
Where a particular qualification is asked for, equivalent qualifications should be accepted.
Not award criteria
Award criteria assess the tender and decide the winner; conditions of participation decide who may take part.
Not exclusion grounds
The Act's mandatory and discretionary exclusion grounds are separate and apply in addition.
Explore: What is a PQQ?, What is the most advantageous tender?, What is the competitive flexible procedure?, Tender evaluation software.
How eSourcingData helps
eSourcingData helps buyers set proportionate conditions of participation and assess them consistently, with the reasoning recorded.
Proportionate by design
Build conditions that match the contract, with the justification captured alongside them.
Consistent assessment
Score supplier responses against clear criteria so decisions are repeatable across evaluators.
Clean separation
Keep participation, exclusion and award decisions distinct and separately evidenced.
Audit-ready records
Every pass, fail and reason is recorded so shortlisting is transparent and defensible.
FAQs
What are conditions of participation?
Conditions of participation are the requirements a contracting authority sets that a supplier must satisfy to take part in a competitive tendering procedure under the Procurement Act 2023. They cover legal and financial capacity and technical ability, and may be set only where they are proportionate to the nature, complexity and cost of the contract.
Are conditions of participation the same as a PQQ?
They do the same job in substance. Under the previous rules, supplier suitability was assessed through a PQQ or standardised selection questionnaire. Under the Procurement Act 2023 the authority sets conditions of participation instead, with an explicit proportionality test and limits on what may be required.
What is the difference between conditions of participation and award criteria?
Conditions of participation are about the supplier and decide who may take part in the competition. Award criteria are about the tender and decide who wins. Mixing them up, for example scoring capability twice, is a common source of challenge, so the two should be kept clearly separate.
Can a buyer require a specific qualification?
Only within limits. Conditions must be proportionate and relate to legal and financial capacity or technical ability, and where a particular qualification is specified the authority should accept equivalent qualifications. Requirements that go beyond what the contract genuinely needs risk being disproportionate and shutting out capable suppliers.
How do exclusion grounds fit in?
They are separate. The Procurement Act 2023 sets out mandatory and discretionary exclusion grounds, for example certain convictions or serious poor performance, which apply in addition to whatever conditions of participation the authority has set. A supplier can meet the conditions and still be excluded on those grounds.
Set conditions that stand up
See how eSourcingData helps UK buyers set and assess proportionate conditions of participation under PA23. Book a demo or request a pilot.