Business Questionnaire - What is it and how is it used in procurement and tendering: A Comprehensive Guide to Supplier Evaluation

Understanding Business Questionnaires in Procurement

Business questionnaires - what are they? How do they work public sector procurement? In summary, they help organisations evaluate potential suppliers and ensure they meet essential requirements before moving forward in the tender process. It's often a quick but formal document which bidders need to complete as part of the wider tendering process.

Definition and Purpose of a Business Questionnaire

A business questionnaire is a formal document used to gather key information about your company before you can bid for public sector contracts. These forms assess your organisation's capability, experience, and financial standing.

The questionnaire helps public sector buyers:

• Screen potential suppliers
• Check basic eligibility
• Evaluate financial stability
• Verify technical capabilities
• Ensure compliance with regulations

Your responses determine if you can progress to the next stage of bidding. Getting these answers right is crucial for success in public procurement.

Types of Business Questionnaires

The Standard Selection Questionnaire (SQ) is the most common type used in UK public procurement. It contains three main parts that examine your company details, financial information, and technical abilities.

The Procurement Specific Questionnaire (PSQ) will replace the SQ from 24 February 2025. This new format stems from the Procurement Act 2023 and aims to streamline the selection process.

Other types include:

• Pre-Qualification Questionnaires (PQQ)
• General Information Questionnaires (GIQ)

Each type serves the same basic purpose - to check if your business meets the minimum standards needed for public sector work.

Thornton & Lowe for Business Questionnaires

We provide a professional, outsourced service to help businesses respond to business questionnaires with confidence and clarity. Our dedicated team of bid and tender writers ensures responses are accurate, compliant, and compelling! Whether it's supplier questionnaires, pre-qualification documents, or compliance forms, we manage the process efficiently, saving time and reducing risk. With our expertise, businesses can focus on their core operations while we handle the detail, ensuring every response meets the highest standards.

The Role of Questionnaires in Procurement and Tendering

Business questionnaires as used frequently within the procurement and tendering processes. It allows for an efficient, fair and standardised route for working with new businesses.

Identifying Suitable Suppliers

Pre-qualification questionnaires help buyers create a shortlist of suppliers who meet your basic requirements. These documents ask about company details, experience, and past performance.

They will need to include questions about:

• Company registration and ownership
• Years of operation in relevant sectors
• Previous similar contracts
• Core business activities

The questionnaire helps filter out unsuitable suppliers early in the process. This saves procurement time and resources by focusing only on suppliers who can realistically fulfil your needs.

Assessing Technical and Professional Ability

Technical assessment questions examine suppliers' specific capabilities to deliver the required goods or services.

Key areas to evaluate include:

• Staff qualifications and expertise
• Quality management systems
• Equipment and facilities
• Project management approach

Procurement teams (buyers) will often request evidence of relevant certifications and accreditations. This might include ISO standards or industry-specific qualifications.

Professional references from previous clients help verify claimed abilities and track record.

Ensuring Compliance and Legal Requirements

Compliance questions protect your organisation from legal and regulatory risks. These questions cover essential requirements under UK law.

Required information typically includes:

• Health and safety policies
• Environmental management procedures
• Social value commitments
• Modern slavery statements
• Data protection measures

They also must verify suppliers:

• Tax compliance
• Company registration status
• Insurance certificates
• Trading licences

Evaluating Financial Standing and Insurance Cover

Financial evaluation helps identify suppliers who are stable and capable of fulfilling contract obligations.

Key financial aspects to check:

• Annual turnover / accounts (often 3 years if available)
• Credit rating (often D&B)
• Bank references
• Financial statements

You may also find FVRAs of interest, which is a common tool used in the UK public sector.

Insurance requirements often include:

• Professional indemnity cover
• Public liability insurance
• Employer's liability insurance

They will specify minimum coverage levels based on contract value and risk assessment and request current certificates as proof of adequate insurance. As a supplier (or bidder) if you do not think the levels are fair or reasonable - it is worth asking a clarification question. You can often commit to getting the levels into place if successful to balance out costs of increasing cover.

Components of a Comprehensive Business Questionnaire

A business questionnaire needs to ask the right questions if it is going to really assess capabilities, compliance and suitability of a new supplier.

Supplier Information and Organisational Details

The first section collects basic company information from your suppliers. This includes:

• Company name and registration number
• Trading address and contact details
• Directors and key personnel
• Company structure and ownership
• Financial details and turnover
• Number of employees
• Insurance coverage and policies

Previous Experience and Case Studies

The questionnaire will verify suppliers' relevant experience. Requesting, for example:

• Details of similar contracts delivered in the past 3 years
• Project values and timelines
• Client references and contact information
• Specific outcomes and achievements
• Problem-solving examples
• Key staff experience and qualifications

Include space for 2-3 detailed case studies showing how they handled projects similar to yours.

Quality Assurance and Accreditation

Quality standards demonstrate a supplier's commitment to excellence. Key areas to cover:

• ISO 9001 certification status
• Industry-specific accreditations
• Quality management systems
• Staff training programmes
• Product testing procedures
• Quality control processes

Request copies of current certificates and ask about renewal dates.

Health, Safety, and Environmental Policies

This section examines commitment to safety and environmental responsibility:

• Health and safety policy details
• Risk assessment procedures
• Accident reporting systems
• Environmental management plans
• Waste reduction initiatives
• Carbon reduction targets

Staff training records and examples of risk assessments and method statements.

Equality, Diversity, and Social Policy Compliance

Modern businesses must demonstrate strong social values:

• Equal opportunities policy
• Diversity training programmes
• Anti-discrimination procedures
• Modern slavery statement
• Social value initiatives
• Community engagement

As well as writing tender responses for our clients, we will also often support the development of the policies, procedures and strategies.

Navigating the Pre-Qualification Stage

The pre-qualification stage helps buyers identify qualified suppliers through standardised questionnaires and selection criteria. Digital platforms make this process more efficient and accessible or are meant to...

Understanding the PQQ Process

A Pre-Qualification Questionnaire (PQQ) serves as your first step in the tendering process. Many public sector contracts require you to complete a standard Selection Questionnaire (SQ) or a PSQ as noted above. This replaces the traditional PQQ format for certain procurement routes.

Selection Criteria and Minimum Requirements

Your responses must meet specific minimum standards to move forward in the procurement process. You will recognise this list from above - but they will be asking for:

• Financial stability and turnover requirements
• Relevant certifications and accreditations
• Track record of similar projects
• Health and safety policies
• Environmental management systems

Make sure you have all supporting documents ready before starting. Missing documentation can lead to disqualification.

The Role of Central Digital Platforms in PQQ Submission

Most UK public sector organisations now use central digital platforms for PQQ submissions. These platforms store your company information securely and allow you to reuse it for multiple bids.

Common platforms include:

• Contracts Finder
• Public Contracts Scotland
• Sell2Wales

At Thornton & Lowe, we have Tender Pipeline which collates the data from these and other key public sector sites.

The Selection Questionnaire (SQ) in Detail

The Selection Questionnaire serves as a standardised tool for evaluating potential suppliers in public sector procurement. It helps assess financial standing, technical capabilities and legal compliance through a structured format.

Difference Between PQQ and SQ

The SQ replaced the Pre-Qualification Questionnaire (PQQ) in 2016 as part of modernising procurement processes. The key change focuses on alignment with the Public Contracts Regulations 2015.

The SQ places more emphasis on supplier declarations and self-certification. This makes the process more straightforward for both buyers and suppliers.

You'll find the format more streamlined compared to the old PQQ, with clearer exclusion grounds and qualification criteria.

Standard Selection Questionnaire Framework

The framework consists of three distinct parts:

1. Part 1: Basic company information and contact details
2. Part 2: Grounds for mandatory and discretionary exclusion
3. Part 3: Selection criteria including:
   • Financial standing
   • Technical capability
   • Professional qualifications

Each section must be completed accurately to move forward in the procurement process.

Key Areas of Evaluation in the SQ

Your responses in the SQ help buyers assess several crucial aspects:

Financial Health

• Annual turnover
• Financial ratios
• Banking references

Technical Capability

• Past performance
• Relevant experience
• Quality management systems

The evaluation looks at your company's capacity to deliver the contract requirements. Include specific examples of similar work when possible.

Your answers must be backed by evidence when requested. Keep records of all certificates, accreditations and references ready.

Best Practices for Procurement Teams

Effective procurement processes need clear questionnaires and transparent tender evaluations. Strong systems create fair competition and help teams select the right suppliers.

At Thornton & Lowe we help both suppliers bidders, but often also provide public sector (and funded) organisations with their procurement.

Creating Effective Questionnaires

Procurement questionnaires must be specific to each contract's requirements. Break down complex technical specifications into clear, focused questions that suppliers can easily answer. They need to be practical!

Include only relevant questions that help assess supplier capabilities. Keep language simple and avoid industry jargon that might confuse bidders.

Key elements to include:

• Technical requirements
• Pricing structures
• Quality standards
• Delivery timelines
• Past performance evidence

Set clear scoring criteria for each question. This helps evaluate responses fairly and compare suppliers objectively.

Facilitating a Transparent Tender Process

Document all steps in your tender process. Share evaluation criteria with suppliers before they submit bids.

Essential transparency measures:

• Publish tender notices with complete details
• Give equal access to information
• Record all supplier communications
• Use standardised forms and templates

An audit trail of decisions and scoring helps protects your team and builds trust with suppliers.

Send feedback to unsuccessful bidders telling them where they fell short and how they can improve future bids.

Legal and Regulatory Considerations

Business questionnaires used by the public sector must comply with strict legal requirements and regulations that protect both buyers and suppliers. Proper compliance helps avoid penalties and ensures fair competition in procurement processes.

Complying with the Procurement Act 2023

The Procurement Act 2023 sets specific rules for how to structure and use business questionnaires in public sector procurement. The questionnaire needs to follow the standard format outlined in the Act. This includes using government-approved templates.

The Act brings key changes for public sector buyers, streamlining processes, increasing transparency, and driving value for money. A simplified competitive framework replaces existing procedures, making procurement more flexible while maintaining fairness. Buyers must now consider broader social value, with a greater focus on supplier resilience and sustainability. There’s also increased scrutiny on contract performance, with clear obligations for contract management and reporting. The act introduces a new central debarment list, ensuring better oversight of supplier risk. With these changes, public sector buyers must adapt to new regulations while ensuring compliance and efficiency in procurement.

Understanding Debarment and Exclusions

Debarment prevents banned suppliers from participating in procurement processes.

Your questionnaire must include questions about previous exclusions.

The UK maintains an official debarment list. You need to check suppliers against this list during the qualification process.

Mandatory exclusion grounds:

• Fraud convictions
• Money laundering
• Terrorist offences
• Non-payment of taxes

Watch for changes in a supplier's debarment status throughout the procurement process.

Regular checks help maintain compliance.

Engaging with Public and Private Sector Procurement

Public and private sector procurement processes require different approaches to win contracts. However, for both it is about relationships, trust, risk and innovation.

Each has unique requirements, assessment standards, and compliance needs that shape how you prepare tender responses.

Contrasts in Public and Private Sector Tendering Approaches

Public sector procurement follows strict regulations and formal procedures. It's public cash! So therefore any spending needs to achieve value for money and be procured in a way which is open, fair and transparent. They are ultimately accountable for what they spend.

You must complete specific documents like the PSQ or ITTs when bidding for government contracts.

Private sector procurement tends to be more flexible. Companies can set their own criteria and assessment methods based on business needs rather than regulatory requirements. We have seen a move from larger private sector organisations to replicate some of the processes and requirements of public sector tendering in recent years.

Public tenders require detailed documentation of your policies, procedures, and compliance records.

Private buyers might focus more on commercial aspects and previous performance.

The Importance of PAS91 and Common Assessment Standard

PAS91 serves as a pre-qualification questionnaire for construction projects. It standardises how you demonstrate your company's capabilities and compliance. The Common Assessment Standard unifies qualification requirements, however, many procurement procedures will still require a specific questionnaire to be completed for them.

It should reduce the need to complete multiple pre-qualification questionnaires for different buyers. This is also a key aim of the Procurement Act and the Central Digital Platform. We are helping many customers to register and access this platform. So please contact us if you need support.

They create a single source of verified information that multiple buyers can access. It is important to therefore keep your certifications current and the site updated.

Regular updates to your PAS91 and Common Assessment Standard documentation save time when bidding for new work.

Post-Tender Submission and Evaluation

After submitting your tender, the procurement team will assess all bids against specific criteria to determine the most suitable supplier. The evaluation process helps identify strengths and areas for growth in your submission.

Analysing Feedback and Performance

Your tender performance review starts when you receive detailed feedback from the procurement team.

Pay close attention to scoring breakdowns and comments on each section of your submission.

Make notes of where you scored well and which areas need work.

Common feedback topics include pricing structure, service delivery plans, and compliance with specifications.

Create a simple tracking system to record feedback points:

• Technical compliance scores
• Commercial pricing feedback
• Quality management ratings
• Innovation proposals
• Risk management approach

Continuous Improvement and Governance

Use your feedback data to build stronger future submissions.

Track patterns in evaluator comments to spot recurring weaknesses in your approach.

Set up regular internal reviews of your tender processes:

• Update submission templates
• Refresh supporting evidence
• Check compliance requirements
• Review pricing strategies

Store all feedback and evaluation documents in a central system.

This creates an audit trail and helps maintain consistency across future bids. Consider forming a small review team to assess each tender outcome. Their insights can help refine your approach to future opportunities.

We will often review clients bids to help them add value prior to submission. Also, if a business has not been successful with a bid, they may ask us to review their bid, alongside the feedback and advise on whether there is a right to challenge!

Frequently Asked Questions

Procurement questionnaires help organisations make informed choices and maintain fair competition standards.

What are the essential components of a procurement-specific questionnaire?

A procurement-specific questionnaire must include clear questions about company details, financial status, and technical capabilities.

The document needs sections covering past performance, quality management systems, and health and safety records.

Key components also include sustainability practices, data protection measures, and compliance with industry regulations.

How does a selection questionnaire facilitate the vetting process in procurement?

Selection questionnaires help organisations screen potential suppliers based on set criteria. They assess financial stability and technical competence.

The vetting process becomes more structured with standardised questions that compare suppliers fairly.

Your responses help procurement teams create a shortlist of qualified suppliers who meet basic requirements.

Could you explain the purpose of a pre-qualification questionnaire in the context of tender evaluation?

Pre-qualification questionnaires filter out unsuitable suppliers before the full tender process begins. They save time and resources for both buyers and suppliers.

These questionnaires check if suppliers meet minimum standards for consideration.

Your answers demonstrate your company's ability to deliver the required goods or services.

In what way does the PSQ enhance transparency within the procurement act?

PSQs create a clear paper trail of the selection process. They ensure all suppliers receive the same questions and equal treatment.

Your responses become documented evidence of the selection criteria used.

The standardised format makes it easier to justify procurement decisions to stakeholders.

How does a tender questionnaire differ from other evaluation tools in procurement?

Tender questionnaires focus specifically on project delivery details and costs. They ask for more in-depth information than initial screening tools.

These questionnaires require detailed responses about your proposed solution and implementation plan.

Your answers help buyers compare specific aspects of different proposals rather than just basic company information.