Winning UK public sector contracts starts before you write a single method statement. The make-or-break is your construction pre-qualification position: whether you can pass the buyer’s basic checks (often called the PQQ or Selection Questionnaire/SQ) and be invited to tender. Since the Procurement Act 2023 went live (24 February 2025), buyers have clearer rules, a beefed-up exclusions/debarment regime, stronger 30-day payment terms in the supply chain, and an enhanced Find a Tender platform that lets you store and reuse your core details. If you get “bid-ready” once, you can reuse that compliance across opportunities and frameworks.
Below is a plain-English, step-by-step way for SMEs to meet pre-qualification requirements, pass the PQQ/SQ stage, and move to the real prize: evaluation on quality and price.
1) Know what buyers expect in 2025: SQ vs PQQ, CAS, and the digital platform
- SQ (Selection Questionnaire) replaces the old PQQ template in central guidance. The Cabinet Office’s latest note (PPN 03/24) updates the questions and guidance buyers use at selection stage (the gate you must pass to reach tender). Expect standardised questions on business standing, exclusions, finance, and capability. (GOV.UK)
- For construction works, authorities are now guided to use the Common Assessment Standard (CAS) instead of the standard SQ to pre-qualify bidders. In short: if you hold CAS, you can often skip repeating the same compliance in every competition.
- Central Digital Platform (enhanced Find a Tender). Under the new regime, suppliers register once, upload reusable information (company data, policies, certificates), and then reference it in bids. This cuts duplication across tenders and frameworks.
What it means for you: if you’re a works contractor, getting CAS certified is the most efficient route to pass pre-qualification consistently. (CAS certification levels—desktop and site-based—are recognised by major clients.)
2) Get your “non-negotiables” in order (before you even click ‘Start Application’)
Buyers will check certain basics at selection stage. Make sure these are rock-solid:
- Legal & exclusions: You must confirm you’re not in a mandatory exclusion situation (e.g., certain offences) and not on the government debarment list introduced by the Act. If you are, you can be ruled out.
- Insurance: Do not buy project-specific insurance pre-award unless required—buyers are prohibited from insisting on performance insurance being in place before award. They can accept a broker letter confirming you can secure the levels if you win. (You still must have Employers’ Liability insurance by law—minimum £5m—if you employ staff.)
- Health & Safety competence (CDM 2015): Demonstrate a managed H&S system, competent supervision, worker engagement, inductions, and construction phase planning. If you’ll act as Principal Contractor, evidence the skills, knowledge, experience, and organisational capability the HSE expects. SSIP accreditation helps prove baseline H&S compliance.
- Environmental & Net Zero (big central govt contracts): For central government competitions over £5m p.a., expect to provide a Carbon Reduction Plan compliant with PPN 006 (formerly PPN 06/21) showing your path to Net Zero.
- Payment practices: The Act hard-codes 30-day payment terms through the supply chain, with spot checks to enforce it—good news for cash flow and for demonstrating you pay subs on time.
Tip: Align your documentation with CAS sections (H&S, environmental, quality, data protection, modern slavery, equality, etc.) so what you upload once can serve multiple buyers and frameworks.
3) Make the finance test a formality (and proportionate to your size)
Public buyers assess economic and financial standing (EFS) to judge delivery risk. Two practical points:
- Turnover tests should be proportionate. Government guidance states that requiring more than twice the contract value as minimum annual turnover is generally not permitted (unless a higher figure is justified by risk). If you see an excessive bar, query it.
- Ratios and credit scores. Buyers increasingly use standard ratios (liquidity, solvency) and third-party scores; if you look “amber” or “red”, bring context (e.g., growth investments, parent guarantees, ring-fenced project accounts). The Cabinet Office guidance encourages proportionate, transparent assessment—so offer mitigations early.
Action list: have your last 2–3 years’ accounts, up-to-date management figures, and any group support letters ready; line up an insurance broker letter confirming the cover you’ll place at award (no cost risk until you’ve won).
4) Pass the CAS/SQ questions first time (what to prepare and how to answer)
Even if buyers still call it a PQQ, it’s essentially CAS (for works) or the SQ (for other procurements). Here’s how to make light work of it:
- Use CAS as your single source of truth. Complete CAS once (desktop or site-based) with evidence for each section; keep it current and you’ll avoid re-typing the same answers for every council/NHS/university tender.
- Answer exactly what’s asked. The PPN 03/24 question set is standardised; if the buyer deviates materially, they have to report that internally—so don’t overcomplicate your responses. Use the wording buyers recognise.
- Map your policies to procurement language. For example, link your H&S plan to CDM 2015 duties; tie your environmental plan to your Carbon Reduction Plan if relevant; show your prompt payment performance (30-day terms) for credibility with primes/clients.
- Keep everything reusable on the platform. Upload certificates, policies, CRP, SSIP/CAS details, insurances (or broker letter) to the central digital platform so your next bid is copy-light.
5) Show you can deliver: evidence that convinces evaluators
Pre-qualification isn’t just box-ticking—it’s proof you can deliver safely, compliantly and on time:
- Relevant case studies (last 3–5 years) with value, scope, client contact, KPIs (snag rates, programme adherence), and social value delivered.
- Team CVs and accreditations (SMSTS, trade cards) matched to CDM roles and risk.
- Supply chain approach & payment: explain 30-day terms and how you monitor your subcontractors’ prompt payment (mirroring the Act’s expectations and spot-check regime).
Real-world UK use cases (what “good” looks like)
A) Local authority minor works framework (lots up to £1m)
A district council launches a multi-lot framework for responsive repairs and small capital works. Pre-qualification: Council indicates CAS (desktop) acceptable in place of bespoke SQ. You upload CAS certificate, SSIP, H&S policy, EL insurance certificate (£5m+), and 2–3 matching case studies. You pass selection without rewriting answers, because CAS covers the standard sections the council expects.
B) NHS refurbishment project (~£2.5m)
Trust requires evidence of CDM 2015 competence, site controls, and staff vetting. You map your RAMS and Construction Phase Plan approach to HSE’s Principal Contractor duties; your CAS pack provides H&S, environmental and equality policies in one place. Pre-award, you provide a broker letter confirming you’ll incept specified insurances on award (not before).
C) University planned maintenance framework (lots up to £6m, central govt funding)
Because annual call-offs may exceed £5m p.a., you submit a PPN 006-compliant Carbon Reduction Plan with your selection response. You also confirm 30-day payment terms through your supply chain and show monthly payment reporting. Result: you clear selection and get to the quality/price stage.
Common pitfalls (and quick fixes)
- Buying insurance too early: Don’t. Provide a broker letter and commit to placing cover after award. It’s permitted and protects SME cash flow.
- Over-high turnover bars: If a buyer sets a minimum turnover wildly above the 2× contract value guide, ask for proportionate criteria or to rely on other mitigations (parent guarantee, escrow, phasing).
- Ignoring debarment/exclusions: A “yes” to a mandatory ground will stop you at the gate. Fix root issues early; if historic and remedied, explain clearly under the Act’s broader exclusions framework.
Quick pre-qualification checklist for SMEs
- Get CAS (works contractors) and keep it current.
- Upload your reusable info to the central digital platform (company data, SSIP/CAS, EL insurance, policies).
- Line up finance evidence (accounts, ratios, mitigations) that meets proportionate EFS expectations.
- Prepare your CRP if you target central gov >£5m p.a. work.
- Embed 30-day terms with subs—and be ready for spot checks.
- Map H&S to CDM 2015 duties (especially if acting as Principal Contractor).
Summary
Pre-qualification for UK public sector contracts is now clearer and, with CAS and the central digital platform, far less repetitive. Focus on the basics that never change (safety, finances, policies), align them to CAS/SQ language, and reuse them across competitions. Get those right and your PQQ becomes a fast pass to the quality and price stage—where you actually win work.
Sign up for the Ask A Bid Writer Portal — Create your account to access tools, templates, and guidance tailored to UK public sector tenders. Sign up here.
FAQs:
1) What’s the difference between PQQ and SQ?
PQQ is the older term; most buyers now use the Selection Questionnaire (SQ). For construction works, many accept the Common Assessment Standard (CAS) in place of a bespoke SQ.
2) What financials do SMEs need to pass?
Expect proportionate turnover and ratio checks (often up to ~2× annual contract value). If you’re close, offer mitigations (e.g., parent guarantee, phased payments).
3) Do I need insurance before bidding?
No—provide a broker letter confirming you’ll place required cover on award. You must hold Employers’ Liability (min £5m) if you employ staff.
4) Do I need a Carbon Reduction Plan (CRP)?
Yes for central government tenders typically over £5m per year. Keep it current and aligned with the latest policy note.
5) Are 30-day payment terms mandatory?
Under the new regime, buyers expect 30-day payment through the supply chain. Show how you enforce this with your subcontractors to strengthen your pre-qualification.
Related blog:
