Overview
This regulation enables contracting authorities to ask suppliers to indicate in their tenders whether they intend to subcontract to third parties and any subcontractors.
Contracting authorities may also verify whether any of the regulation 57 (PCR 2015) grounds for exclusion apply to subcontractors. In such circumstances, contracting authorities must require suppliers to replace any subcontractor which meets one or more mandatory grounds for exclusion, and may require bidders to replace any subcontractor which meets one or more discretionary grounds for exclusion.
Contracting authorities are required, in the case of works contracts and certain services contracts, to require the supplier to provide the name, contact details and legal representatives of its subcontractors (in so far as known at the time). This notification must be made after the award of the contract and at the latest when the contract commences; the contracting authority must require the supplier to notify them of any changes to this information during the contract term.
Objective at this commercial stage
Where the procurement documents indicate that proposed subcontractors will be assessed against the regulation 57 grounds for exclusion, contracting authorities should ensure they have verified whether any of these exclusion grounds apply before awarding the contract.
Key considerations at this commercial stage
Contracting authorities should:
- ensure that appropriate verification has taken place to ascertain whether proposed subcontractors meet any of the mandatory or discretionary exclusion grounds
- ensure that, where a proposed subcontractor meets one or more mandatory exclusion grounds, the bidder replaces the subcontractor
- consider, where a proposed subcontractor meets one or more discretionary exclusion grounds, whether to exercise its discretion to require the replacement of the subcontractor
- in applying exclusion grounds to proposed subcontractors, ensure compliance with the principles of equal treatment, non-discrimination and proportionality.
Legal framework
See also in the Procurement Act 2023:
- Section 28: Excluding suppliers by reference to sub-contractors
- Section 29: Excluding a supplier that is a threat to national security
- Section 72: Sub-contracting: directions
Additional support and guidance
Make sure you:
- read the regulation
- seek legal and commercial advice in the context of specific procurements
