United Kingdom · financial standing · notice literacy
Turnover requirements on Contracts Finder notices — reading the 2× gate
Turnover is a common bid/no-bid gate for UK SMEs — but most guides assume you are already inside the SQ pack. This page teaches notice-stage literacy: how turnover wording appears on Contracts Finder and Find a Tender, when you can kill a bid from the published text alone, and when the gate stays Unknown until the ITT arrives. For facilities, cleaning and trades firms on roughly £10k–£250k lots. Not legal advice. Not bid writing.
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The 2× annual contract value benchmark
UK public buyers commonly test financial standing against turnover. A widely cited benchmark — reflected in Procurement Act 2023 guidance and predecessor practice — is that a bidder’s average annual turnover should be at least twice the estimated annual contract value.
Worked example (literacy only):
- Notice states total contract value £150,000 over 3 years → annual value ≈ £50,000.
- At a 2× multiple → minimum turnover ≈ £100,000 (often averaged over the last two or three filed years — the notice or pack will say which).
- If your filed accounts show £80,000 average turnover and the notice states the 2× rule, that is a notice-stage Fail — do not download the pack hoping for an exception.
Buyers may use 1×, a fixed floor (“minimum turnover £250,000”), or a different averaging period. Read the exact wording on the notice. This guide does not replace GOV.UK or your accountant.
How turnover appears on Contracts Finder notices
Turnover requirements are inconsistently visible. On a ten-minute notice read, check:
- Description / scope text — “bidders must demonstrate average annual turnover of at least 2× the contract value”.
- Mandatory requirements or selection criteria — sometimes attached as a PDF on the notice page without opening the full ITT.
- Estimated value field — you need this to run the 2× maths when a multiple is stated.
- SME suitability flag — not a turnover test, but a signal the lot was sized for smaller firms.
Often — especially on smaller Contracts Finder lots — turnover is not on the notice at all. It lives in the SQ or ITT pack. That is Unknown on a £9.99 public-notice memo, same as unstated insurance limits in the PL and contract value guide.
The triage calculation — three steps
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Find the contract value on the notice. Total value, lot value, or annual estimate. If only a range is given (“£40,000–£60,000”), use the upper bound for conservative triage.
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Convert to annual value. Divide total value by contract years if duration is stated. A £120k / 4-year cleaning contract → £30k per year.
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Apply the stated multiple. If the notice says 2× annual value → multiply. Compare to your last filed accounts average (or the period the notice names). Below the floor → Fail. No turnover wording → Unknown.
Notice-stated turnover vs pack-only — the triage table
Use this on one notice. Same Pass / Fail / Unknown logic as the bid/no-bid checklist.
| Situation | What the notice shows | Your action | Memo product |
|---|---|---|---|
| Notice-stage Fail | States “2× annual contract value” or a fixed minimum turnover; your filed average is clearly below | No-bid from the notice — do not open the pack or call a writer | Digest alone was enough; memo optional for documentation |
| Notice-stage Pass | States a floor; your filed turnover clearly meets it with headroom | Turnover gate Pass; continue other gates (clock, PL, framework, incumbent) | £9.99 if other gates need scoring — see when a match needs a memo |
| Unknown — silent notice | No turnover, financial standing or accounts-years wording on the published notice | Do not guess. Mark Unknown. Decide whether other gates justify opening the pack | £9.99 memo keeps turnover Unknown; £29.99 after pack forward |
| Unknown — vague value | Turnover multiple stated but contract value missing or “TBC” | Cannot calculate — Unknown until value is clear from pack or buyer Q&A | £29.99 pack memo if you proceed |
| Pack-only schedule | Notice says “see SQ” or “financial standing in ITT Part 2” with no numbers on the notice page | Notice triage cannot Fail or Pass turnover — pack required | £29.99 pack memo fills from ITT/SQ you forward |
One clear Fail is enough to stop. Multiple Unknowns are not a Yes — they are a reason to open the pack carefully or buy a memo, not a reason to hire a bid writer.
When to kill from the notice alone vs when it stays Unknown
Kill from the notice when:
- The notice prints a minimum turnover or 2× rule and your accounts clearly fail.
- The notice states “average turnover in the last three years must exceed £X” and you are below £X.
- Parent-company guarantee or bonding is required and you have neither — when that requirement is stated on the notice (rare on small lots but possible).
Stay Unknown when:
- Turnover is not mentioned anywhere on the published notice — common on Contracts Finder cleaning and trades lots.
- Only “financial standing criteria in the SQ” appears with no numbers.
- You are guessing from industry norms instead of printed text. BidFit does not invent thresholds.
Example of notice-only Unknown gates on a real memo: Bedford College windows sample (turnover and insurance both Unknown on the notice).
£9.99 vs £29.99 on turnover
- £9.99 public-notice memo — flags stated turnover from the published notice only. If the notice is silent, turnover stays Unknown. Use when the notice survived triage and you want a sourced table before bid-writing spend.
- £29.99 pack memo — you forward the ITT/SQ; we fill the financial-standing schedule, turnover multiple, accounts years and any bonding asks from documents you send. Still not SQ answers or a written bid.
Product detail: prices and how it works. Memo ladder: when a notice match needs a memo.
What BidFit will not do
- Not bid writing or SQ completion. We do not draft financial-standing responses.
- Not legal or accountancy advice. We compare stated gates to the profile you provide.
- Not guess pack-only numbers. Unknown stays Unknown on the £9.99 product by design.
Questions
What is the 2× turnover rule on UK public tenders?
UK public buyers often set financial-standing thresholds at around twice the estimated annual contract value — a common benchmark under the Procurement Act 2023 regime. If a contract is worth £50k per year, a 2× rule implies roughly £100k minimum average turnover. Buyers may state a different multiple or a fixed floor on the notice or in the SQ pack.
Where do turnover requirements appear on a Contracts Finder notice?
Sometimes in the description, mandatory requirements or selection-criteria section on the notice page. Often they are not stated at all — turnover lives only in the ITT or SQ pack. If unstated on the published notice, mark turnover Unknown on a £9.99 public-notice memo.
When is turnover a notice-stage Fail versus Unknown?
Fail when the notice states a minimum turnover or 2× multiple and your filed accounts clearly fall below it. Unknown when turnover is not mentioned on the notice or the contract value is too vague to calculate. Pack-only financial-standing schedules stay Unknown until you forward the ITT/SQ for a £29.99 memo.
Does BidFit advise on financial standing or write SQ answers?
No. BidFit memos flag what the notice or pack states against the profile you provide — Pass, Fail or Unknown. We do not draft SQ financial responses, interpret the Procurement Act for your firm, or write bids.
More guides
All BidFit guides: /guides/. PL and insurance gates: public liability and contract value. Bid/no-bid checklist: bid/no-bid decision for UK SMEs. Notice triage: how to read a tender notice in ten minutes. Incumbent lookup: find incumbent / last award on Contracts Finder. Memo vs digest: when a match needs a memo.
Triage turnover before you write the bid
Take the free weekly list. When a notice states turnover and you want it scored with the other gates, order a £9.99 memo — or run the 2× check yourself and move on.