Pre-Qualification Questionnaire / Selection Questionnaire (PQQ/SQ)

Pre-qualification is the filtering stage in a restricted or two-stage procurement process where the contracting authority assesses whether suppliers meet minimum standards before expending resources on a full tender exercise. In the UK, pre-qualification questionnaires (PQQs) were standardized into the Selection Questionnaire (SQ) under public procurement reform, while the EU relies on the ESPD for the same purpose.

Typical PQQ/SQ requirements include: minimum annual turnover (often 1.5× to 2× contract value), professional indemnity and public liability insurance levels, three years of audited accounts, relevant experience (usually three comparable contracts), key staff CVs, and declarations regarding exclusion grounds such as insolvency or criminal convictions.

For vendors, PQQ/SQ stage is a critical gateway. Failing selection criteria — particularly the financial standing tests — is a common and avoidable reason for exclusion. SMEs often struggle here because turnover thresholds are set relative to contract value. Strategies include consortium bidding (pooling financials), obtaining a parent company guarantee, or targeting frameworks and DPS systems with proportionate financial thresholds. The Cabinet Office has produced model SQ wording for UK authorities, but individual contracting authorities still vary their requirements within permitted limits.