Exclusion grounds are the reasons a public sector buyer can remove a supplier from a procurement under the Procurement Act 2023. They fall into two types: mandatory grounds, which force a buyer to exclude you, and discretionary grounds, which allow a buyer to exclude you. Understanding them is essential, because a single overlooked issue — in your business, a connected person, or even a subcontractor — can end your bid before it is scored. This guide explains the exclusion grounds and how to protect your eligibility.
Exclusion is separate from debarment. Exclusion happens within a single procurement; debarment places a supplier on a central list across all procurements. For that side, see our guides to the debarment regime and the central debarment register.
What are exclusion grounds?
Exclusion grounds are the specific circumstances, listed in the Procurement Act 2023, that can disqualify a supplier. The mandatory grounds sit in Schedule 6 of the Act. The discretionary grounds sit in Schedule 7. A buyer must always check whether either type applies before awarding a contract.
However, there is an important nuance. A ground applying is not automatically the end. The buyer must also decide whether the circumstances are continuing or likely to happen again. This is where “self-cleaning” comes in, which we cover below.
Mandatory vs discretionary exclusion grounds
The two categories work differently, and the table makes the distinction clear.
| Feature | Mandatory (Schedule 6) | Discretionary (Schedule 7) |
|---|---|---|
| Effect | Buyer must exclude | Buyer may exclude |
| Supplier status | “Excluded supplier” | “Excludable supplier” |
| Typical grounds | Serious convictions, fraud, bribery, deliberate tax penalties, modern slavery | Insolvency, professional misconduct, poor past performance, labour or environmental breaches |
In short, a mandatory ground makes you an “excluded supplier” and the buyer has no choice but to disregard your bid. A discretionary ground makes you an “excludable supplier”, and the buyer can choose whether to exclude you, weighing the risk against the wider objectives of the procurement.
The new poor-performance ground
Importantly, one change deserves special attention. The Act introduced a discretionary ground for poor contract performance. If you have breached a previous contract seriously, or failed to perform to a satisfactory standard after being given a chance to improve, a buyer can treat that as grounds to exclude you from future work.
This links directly to contract management. Because performance is now published and can follow you into later bids, meeting your KPIs and service levels matters more than ever. Poor delivery is no longer just a contract problem — it is a future bidding risk.
Exclusion extends across your supply chain
A key point suppliers miss: exclusion is not limited to your own conduct. The grounds can apply to your connected persons, associated persons, and subcontractors. If a proposed subcontractor is an excluded or excludable supplier, your bid can be affected — though the buyer must usually give you the chance to replace them.
As a result, due diligence on your partners matters. Before relying on a subcontractor, check their standing, and be ready to name an alternative. Our guide to subcontracting on public sector contracts explains this in more depth.
Self-cleaning: how to protect your eligibility
Still, an exclusion ground can often be overcome. “Self-cleaning” is the process of showing a buyer that, although a ground applies, the risk has been dealt with. To demonstrate self-cleaning, you can show that you have taken the issue seriously, put measures in place to prevent recurrence — such as new staff, training or procedures — and made commitments to maintain them.
To stay eligible, declare exclusion grounds honestly on the Central Digital Platform and in your bids, keep evidence of your remediation, and be ready to explain it. A professional bid writer can help you present self-cleaning credibly and keep your submissions compliant.
Frequently asked questions
What is the difference between mandatory and discretionary exclusion?
A mandatory exclusion ground (Schedule 6) forces a buyer to exclude a supplier, making them an “excluded supplier”. A discretionary ground (Schedule 7) lets a buyer choose whether to exclude, making the supplier “excludable”.
Can poor performance get me excluded from future tenders?
Yes. The Procurement Act 2023 introduced a discretionary exclusion ground for poor contract performance. Serious breaches, or a failure to improve after being given the opportunity, can be treated as grounds for exclusion from future procurements.
Do exclusion grounds apply to my subcontractors?
They can. Exclusion grounds may apply to your connected persons, associated persons and subcontractors. If a proposed subcontractor is excluded or excludable, your bid can be affected, though the buyer must usually let you replace them.
What is self-cleaning?
Self-cleaning is demonstrating to a buyer that, although an exclusion ground applies, you have addressed the underlying issue and the risk is unlikely to recur — through remedial steps such as new procedures, training or management changes.
Protect your eligibility and keep winning
Understanding exclusion grounds keeps your bids in the running. If you would like help declaring and managing them, or presenting self-cleaning persuasively, our team can support you. Get in touch with Together: The Hudson Collective to start winning more, faster.
Source: GOV.UK — Exclusions guidance. This article is for general guidance and does not constitute legal advice.