Is your turnover big enough for this contract?

How buyers set turnover requirements

Under the old Public Contracts Regulations 2015, a buyer couldn't normally ask for a minimum yearly turnover of more than twice the contract's estimated value. The Procurement Act 2023, which replaced those rules for new procurements from February 2025, doesn't set a fixed cap, but conditions must be proportionate to the contract. In practice many buyers still use around twice the yearly contract value as a guide, and some ask for less.

If you fall short

• Bid for a lot. Larger contracts are often split into lots by area or type of work, each with its own lower requirement.
• Team up. Bidding with another firm (a consortium) can let buyers look at your combined turnover. Our partner finder helps you find one.
• Subcontract. Work for the firm that wins. Our subcontracting leads show who has just won what.
• Ask a clarification question. If the requirement looks out of proportion, ask the buyer before the clarification deadline.
• Start smaller. Quotes for small council jobs rarely have turnover tests, and build the track record you need.

This is a guide, not legal advice. The tender documents always set the actual requirement.