Public tender conditions for Chinese suppliers
Set conditions around the supplier’s capacity to deliver the contract, with evidence proportionate to its nature, complexity and cost. Publish the requirements, explain acceptable proof and assess eligibility separately from the bid. Factory evidence can be gathered by Cambridge China Bridge.
Start with the delivery risk
For competitive public procurement under the Procurement Act 2023, participation conditions assess legal and financial capacity or technical ability to perform the contract. They must be proportionate to its nature, complexity and cost. Publish them in the tender notice, supplemented where necessary by tender documents. For framework purchasing, see our guide to buying China-made goods through public frameworks.
Draft each condition alongside the delivery risk it addresses, the minimum acceptable response, supporting evidence and assessment stage. Explain why that requirement is necessary. Identify the bidder, manufacturing site and any intermediary separately so that evidence about a factory is not mistaken for evidence about the contracting supplier.
Check legal and financial capacity
For legal capacity, ask for identity documents, the proposed contracting entity and evidence of the signatory’s authority. Match names across the submission and explain discrepancies. For financial capacity, examine whether the supplier can fund materials, production and delivery under the proposed payment arrangements.
Do not require audited annual accounts from suppliers that are not otherwise required to have their accounts audited; assess alternative financial evidence. State which alternatives you will consider, such as management accounts and bank evidence. When reviewing Chinese documents, request originals alongside translations and record the reporting period, currency and entity covered.
Define technical ability and acceptable proof
Specify the ability needed for this contract: relevant production processes, available capacity, quality controls and comparable work. Conditions cannot require a previous contract award by a particular contracting authority, and particular qualifications must allow equivalents. Ask suppliers claiming equivalence to explain how their evidence meets the stated requirement. For correspondence about these requirements, see writing clear supplier emails.
Evidence demands must also be proportionate. Samples, site visits and audits may suit some contracts but not every purchase. Use our guides to verify factory capability and plan a factory audit for the detailed checks. Record which site, process and supplier each finding supports.
Plan insurance and evidence checks
A participation condition cannot require contract-performance insurance to be in place before award. The guidance allows evidence of insurability, such as an insurer’s offer coupled with the supplier’s commitment to take out cover. Ask the procurement lead to confirm when cover must begin and how it should be verified, given the inconsistent wording in the guidance about verification before award.
Build an evidence register showing the condition, document owner, issuing organisation, verification method and outstanding question. Resolve mismatched names or unclear document scope before recording a pass. For the distinction between evidence of ongoing capability and evidence about a batch, see factory audit versus inspection reports.
Working out your own order? Send us the product on WhatsApp and we reply the same working day: WhatsApp us
Keep eligibility separate from bid scoring
Assess participation responses separately from the tender response. Once a supplier meets the conditions, assess its tender against award criteria without carrying over participation scores or rankings. In a competitive flexible procedure, participation conditions can also support shortlisting using objective criteria set out in the tender notice.
Keep separate assessment records for supplier capacity and the offered solution. For example, evidence that a production line can make the goods supports a capability check; the proposed delivery approach belongs in the bid assessment where covered by the published award criteria. Record reasons and evidence references so reviewers can follow each decision. For equipment specifications, see our guide to naming brands in public tenders.
Frequently asked questions
What financial evidence can a Chinese supplier provide?
Specify proportionate evidence for the contract. Where audited accounts are not otherwise required, assess alternatives. Ask for the reporting entity, period and currency, with translations where needed.
Can we insist on experience with our public authority?
No. A participation condition cannot require a prior contract award by a particular contracting authority. Describe relevant delivery experience instead.
Must suppliers buy contract insurance before bidding?
No. Conditions cannot require contract-performance insurance before award. The guidance permits evidence of insurability; ask the procurement lead to confirm when cover must begin and how it should be verified, given the guidance’s inconsistent wording about verification before award.
Can supplier eligibility scores count towards the award?
No. Participation scores or rankings must not carry into award assessment. A competitive flexible procedure may use published objective participation criteria for shortlisting.