1. Two groups of grounds
The Public Procurement Act distinguishes two kinds. They are mandatory and discretionary grounds.
| Kind | Who decides | Stated in the documents |
|---|---|---|
| Mandatory grounds for exclusion | the law, the authority must exclude | not at the authority's discretion |
| Discretionary grounds for exclusion | the authority decides | must be provided for |
According to Ministry of Finance information, some discretionary grounds can be checked through the register's interface, for instance local tax arrears and breaches of environmental, social and labour law by a legal person tenderer. Others require separate evidence.
Reading the procurement documents is therefore a tenderer's first step, because the application of discretionary grounds is not knowable in advance and differs between authorities. Requirements differ from one authority to another.
2. The three grounds that matter most in construction
Material or persistent breach of an earlier procurement contract, resulting in withdrawal from the contract, its termination, a price reduction, compensation for damage, or payment of a contractual penalty. It is a separate ground for exclusion.
Submission of false information about compliance with qualification conditions, or failure to submit required documents.
Intentionally influencing the authority, or negligently providing misleading information capable of improperly affecting the authority's decisions.
The first ground is the most sensitive in construction, because contractual penalties and price reductions occur in the ordinary course of settling disputes as well. A settlement that resolves a dispute by reducing the price may later be read as an indicator of breach of a procurement contract.
The practical conclusion: the terms and the drafting on which an earlier contract was concluded or terminated affect later eligibility, and this is worth bearing in mind when settling a dispute, not only when the next procurement arrives. That paperwork should be kept.
3. Self cleaning
Here is a mechanism that is used too little. It is self cleaning.
The Public Procurement Act provides for self cleaning. This means an operator can demonstrate that its reliability has been restored where a ground for exclusion has arisen. The conditions and their assessment derive from the law, and this article does not reproduce them.
The principle is nonetheless worth knowing: a ground for exclusion is not necessarily a permanent bar. An operator with a past problem is not automatically shut out of procurement if it has put the situation right and can show it.
4. When the check becomes optional
The September change concerns mini competitions. The duty to check is tied to the new line.
| Rules | Exclusion check at a mini competition mandatory |
|---|---|
| Until 31.08.2026 | where the value exceeds the simplified threshold |
| From 01.09.2026 | where the value exceeds the international threshold |
For all mini competitions below that threshold the authority decides whether to provide for a check in the procurement documents. The decision has to be documented.
The absence of a check does not mean the grounds cease to apply. An operator must still meet the requirements, even where they are not checked each time. Submitting false information is itself a ground for exclusion, which makes giving a declaration while a ground exists a separate and heavier risk than the ground itself.
5. The scope of subcontractor checks
One practical distinction affects both the volume of documents and the timing of collecting them. Some evidence is asked of the winner only.
According to Ministry of Finance information, the law obliges an authority to check only mandatory grounds for exclusion in respect of subcontractors. The check is made before the contract is signed.
| When the authority requires subcontractor data | Who is checked | When the tenderer needs the documents |
|---|---|---|
| already in the tender | subcontractors of all tenderers found conforming | before submitting the tender |
| only before contract award | the successful tenderer only | after being found successful |
The difference matters to tenderers, because in the first case the documents must be collected before the tender is submitted, that is within a deadline that is already tight in construction. The procurement documents must therefore be read to establish when subcontractor data is required, and read before starting to ask subcontractors for prices.
In summary, and four practical rules
Grounds for exclusion fall into mandatory and discretionary groups, and the application of the latter depends on the authority, so it must be read from the procurement documents. The most sensitive ground in construction is material breach of an earlier procurement contract, because contractual penalties and price reductions also occur in ordinary dispute settlement. Self cleaning allows reliability to be restored, so a ground for exclusion is not necessarily a permanent bar.
Four rules: read from the procurement documents which discretionary grounds apply. Bear in mind how an earlier contract's termination was drafted, since it affects later eligibility. Consider self cleaning where a ground has arisen. Check when subcontractor data is required, since that determines when documents must be collected.
This article serves professional orientation at the date of checking. It does not replace the Public Procurement Act or information published by the Ministry of Finance.