Compliance Guide·May 2025

    PQQ vs SQ Under Procurement Act 2023

    What changed with Pre-Qualification Questionnaires and Selection Questionnaires, and how to prepare winning answers every time.

    If you have bid for UK public sector contracts before, you know the frustration of filling out the same selection questions over and over. Under the Procurement Act 2023, the government tried to fix this. But what exactly changed — and what stayed the same?

    What Was the PQQ?

    The Pre-Qualification Questionnaire (PQQ) was the standard way UK buyers filtered out unsuitable bidders before inviting them to tender. It asked about financial standing, technical capability, insurance, and grounds for exclusion.

    The Old Problem

    Every buyer used a slightly different PQQ format. Suppliers had to retype the same answers repeatedly. There was no standardised pass/fail threshold.

    What Is the New SQ?

    The Selection Questionnaire (SQ) replaces the PQQ under the Procurement Act 2023. It is standardised across all in-scope contracting authorities. The goal: reduce bidder burden while maintaining rigorous supplier vetting.

    What Changed

    • Standardised format across all buyers
    • Single submission stored in CDP (Central Digital Platform)
    • Reduced turnover requirements for smaller contracts
    • Clearer pass/fail criteria

    What Stayed the Same

    • Financial standing checks (2 years accounts)
    • Technical and professional capability evidence
    • Insurance requirements (PL, EL, PI)
    • Exclusion grounds (fraud, bankruptcy, etc.)

    The 4 Sections of the SQ

    Part 1: Supplier Information

    Company name, registration number, VAT, DUNS, address, and key contact details. Make sure this matches your Companies House entry exactly.

    Mismatches here are an instant rejection reason.

    Part 2: Grounds for Exclusion

    Self-certification that your business has not committed relevant offences (bribery, fraud, tax evasion, modern slavery, etc.). You must also declare if any directors have been convicted.

    If you answer 'yes' to any exclusion question, you can provide mitigating circumstances — but this rarely succeeds.

    Part 3: Selection Criteria

    Financial standing (turnover, liquidity ratio, audited accounts), technical capability (relevant past performance references), and insurance cover.

    Reference contracts must be within the last 3 years and of comparable scope/value.

    Part 4: Optional Questions

    Buyers can add up to 3 optional questions specific to the contract. These are NOT standardised and vary by tender.

    Read these carefully — they often reveal the buyer's real priorities.

    Standard Selection Questionnaire (Template)

    The Cabinet Office publishes a Standard Selection Questionnaire (SQ) template. Every in-scope authority must use this unless they have a valid deviation reason. The template covers:

    Part 1A: Organisation details
    Part 1B: Contact information
    Part 2A: Mandatory exclusion grounds
    Part 2B: Discretionary exclusion grounds
    Part 3A: Economic and financial standing
    Part 3B: Technical and professional ability
    Part 3C: Insurance and indemnity requirements
    Part 4: Buyer-specific optional questions

    Key change: Once you complete the SQ and submit it via the Central Digital Platform (CDP), it is stored and reusable for future tenders. You do not need to re-enter everything each time.

    Financial Standing: What You Need

    Contract ValueMinimum TurnoverInsurance
    < £100,000No minimum (or 2x contract value)£2M PL / £5M EL
    £100,000 – £1M2x annual contract value£5M PL / £10M EL
    £1M – £5M1.5x annual contract value£5M PL / £10M EL / £2M PI
    > £5M1x annual contract value£10M PL / £10M EL / £5M PI

    * PL = Public Liability, EL = Employer's Liability, PI = Professional Indemnity. Always check the specific tender — these are typical benchmarks, not absolutes.

    5 Tips to Pass the SQ Every Time

    1

    Build a bid library

    Store pre-written answers, case studies, and evidence in a searchable format. 80% of SQ questions repeat across tenders.

    2

    Use the STAR method

    For capability questions, structure every answer: Situation, Task, Action, Result. Include metrics.

    3

    Check your accounts are current

    Buyers typically require accounts from the last 2 financial years. If you are newly incorporated, explain your funding model.

    4

    Name your referees

    Provide direct contact details for past clients. Buyers do call them. Brief your referees beforehand.

    5

    Answer exactly what is asked

    Do not paste generic marketing copy. Address each sub-question individually with specific evidence.

    Stop retyping the same SQ answers

    rTenders stores your company profile, past answers, and evidence — then auto-fills SQs and generates tailored responses for each tender.