Conditions of participation
Bidders are required to demonstrate an average annual turnover that meets or exceeds the following threshold, based on the lot(s) they are bidding for:
• Lot 1: Minimum turnover requirement – £2.25 million
• Lot 2: Minimum turnover requirement – £2.25 million
• Lot 3: Minimum turnover requirement – £2.25 million
• Lot 4: Minimum turnover requirement – £2.25 million
If a bidder is applying for more than one lot, the turnover requirement will be aggregated.
For example:
• Bidding for 2 lots = minimum turnover requirement of £4.5 million
• Bidding for all 4 lots = minimum turnover requirement of £9 million
This reflects the increased financial and delivery risk associated with delivering multiple lots concurrently.
Bidders must provide the following to demonstrate financial standing:
• Audited or independently reviewed accounts for the most recent 2 financial years
• Confirmation of annual turnover for those years
Where accounts are not available (e.g. due to recent incorporation), alternative evidence may be accepted, such as:
• Parent company guarantee
• Bank letter of support
• Insurance documents
• Management accounts
• References from other contracting authorities
If a bidder does not meet the turnover threshold but can provide alternative evidence of financial stability, Hafod reserves the right to carry out an objective risk-based assessment in line with Regulation 24 of the Procurement Act 2023.
This may include, but is not limited to:
• Credit rating reports (e.g. Dun & Bradstreet, Experian)
• Liquidity ratios or net current assets
• Evidence of financial backing
This approach is intended to support SMEs and newer entities while protecting the Authority’s commercial interests.
Hafod reserves the right to:
• Seek clarification on any financial information provided
• Reject bids that fail to meet the financial requirements or demonstrate unacceptable risk