Minimum turnover requirements in care tenders
Many care tenders set a minimum annual turnover requirement, often around twice the annual contract value, to check you are financially robust enough to deliver. It is a pass-fail gate at the selection stage, usually evidenced by recent accounts. If you fall short, options include bidding for a smaller lot, forming a compliant consortium, or waiting until your accounts support it. Check the exact figure and basis before you commit.
Why turnover requirements exist
Buyers use minimum turnover to reduce the risk of a provider failing partway through a contract. A common rule of thumb is that required turnover should not exceed twice the annual contract value, and many care tenders sit at or below that level. The exact figure and the years it is measured over are stated in the documents.
How it is evidenced
You usually evidence turnover through your most recent filed accounts or audited financial statements. Some buyers also run a financial standing check using a credit score or ratios. New providers without a track record may be assessed differently, sometimes via a parent company guarantee or alternative assurance.
What to do if you fall short
If your turnover is below the threshold, you generally cannot simply bid and hope. Realistic routes are a smaller lot with a lower requirement, a compliant consortium or subcontracting arrangement, or building turnover before applying. Our free eligibility check tells you where you stand against the figure.
Not sure if you qualify for a tender? We check it for free, before you pay anything, and we only take bids we believe you can win. Text TENDER to get started.
Common questions
How much turnover do I need for a care tender?
It varies by contract. A widely used guideline caps the requirement at twice the annual contract value, so a 250,000 pound a year contract might ask for around 500,000 pounds. Always check the specific figure in the tender.
Can I bid if my turnover is too low?
Not usually for that lot, as it is a pass-fail gate. Consider a smaller lot, a consortium, or subcontracting under a lead provider who meets the threshold.
How is turnover proven?
Normally through your most recent filed or audited accounts. Some buyers also apply a financial standing or credit check. Newer providers may be offered alternative assurance routes.
Keep reading
Browse all care tender guides, or see care tender writing by service.
Got a tender to check?
Text TENDER to +44 7822 001898and we'll tell you free whether you'd qualify, before you spend a penny.