Definition
Exclusion Grounds
Reasons a supplier can be barred from a procurement.
Exclusion grounds are the reasons a public buyer can, or in some cases must, exclude a supplier from a tender process, ranging from criminal convictions and tax non-compliance to poor past performance or conflicts of interest. They are set out in the Selection Questionnaire or equivalent tender documents and answered honestly by every bidder before evaluation begins.
Mandatory and discretionary grounds
Exclusion grounds split into mandatory grounds, which the buyer must apply if they are met (such as certain criminal convictions or tax offences), and discretionary grounds, where the buyer has judgement about whether exclusion is proportionate (such as poor past contract performance, insolvency, or grave professional misconduct).
Suppliers must answer exclusion questions truthfully and disclose relevant issues; failing to disclose something that later comes to light is usually treated far more seriously than the underlying issue itself.
- Mandatory grounds: specified criminal convictions, tax and social security non-compliance
- Discretionary grounds: insolvency, professional misconduct, breach of environmental/labour/social law obligations
- Discretionary grounds: significant or persistent past contract performance failures
- Discretionary grounds: undue influence, providing misleading information, or conflicts of interest
What to do if a ground could apply to you
If a mandatory or discretionary exclusion ground could technically apply, the safest approach is disclosure alongside evidence of self-cleaning: what happened, what changed, and what controls are now in place. Buyers assess self-cleaning evidence before deciding whether exclusion is still required or appropriate.
Group structures matter too: exclusion assessments can look at parent companies, subsidiaries and named subcontractors, not just the bidding entity, so check the question wording carefully.
Frequently asked questions
- Can I still win a tender if an exclusion ground applies to my company?
- Sometimes. Mandatory grounds generally must lead to exclusion unless a limited exception applies, but discretionary grounds allow the buyer to consider self-cleaning evidence such as changed leadership, new controls or compensation paid, and decide exclusion is no longer necessary.
- Do exclusion grounds apply to subcontractors?
- They can. Many Selection Questionnaires ask about named or key subcontractors, particularly for mandatory grounds, so check the specific wording of each tender's exclusion questions rather than assuming they only cover the lead bidder.
- What happens if I fail to disclose an exclusion ground?
- Providing false or misleading information about exclusion grounds is itself a discretionary (and sometimes treated as a serious) ground for exclusion, and can damage your reputation with that buyer and others. Honest disclosure with self-cleaning evidence is almost always the better strategy.