Lots
Dividing a UK public contract into lots opens it to smaller suppliers. The duty to consider lots, threshold aggregation, and how to bid on the right lot.
Updated on September 5, 2026
Dividing a contract into lots means splitting one requirement into several separately awarded packages, by trade, by geography or by volume band. It is the main mechanism through which small and medium-sized firms reach large public requirements in the United Kingdom, because it lets a supplier bid for the slice of the work that matches its business.
How it works
The Procurement Act 2023 requires a contracting authority to consider, before advertising, whether the goods, services or works could reasonably be supplied under more than one contract. If it decides not to divide the requirement, it must say so and explain why in the tender notice or the associated tender documents. That reasoning is disclosable and can be challenged, which is a real change from the previous regime, where the duty was softer.
Each lot is a contract in its own right, with its own supplier, its own price and its own delivery. Suppliers may bid for one lot, several or all of them, unless the authority limits how many lots a single supplier may be awarded, a limit it must state up front in the tender notice. Tenders are evaluated lot by lot, so a supplier can win one and lose another.
For the thresholds, the values of all the lots are added together: it is the whole requirement that determines the regime, not each package. A works requirement whose lots total more than £5,193,000 including VAT (verified 2026-09-05, PPN 023 and SI 2025/1200) is therefore above threshold, even where each individual lot is modest. Ireland applies the same aggregation rule under the 2016 regulations and the EU works threshold of €5,404,000 excluding VAT.
What it means for a bidder
Lots are what make a £3 million construction project accessible. Split into fifteen trade packages, it lets an electrician, a plumber or a decorator bid on its own account, without having to form a consortium or take work as a subcontractor to a main contractor.
Read the lot list and the conditions attached to each one carefully: the financial standing required, the evaluation criteria and sometimes even the deadlines can differ between lots. If you bid for several, submit a complete response for each unless the instructions say otherwise, and declare any discount you would offer for a multi-lot award where the rules permit it.
Example
A district council builds a community hall valued at about £2.7 million including VAT, divided into fourteen lots. The external joinery lot is estimated at £210,000. A family joinery business with nine employees bids for that lot alone, on the strength of its work for neighbouring councils, and wins it. It could never have bid for the project as a whole.
Frequently asked questions
Can a buyer refuse to divide a contract?
Yes, but it must have considered the question and must record and publish its reasons. An unexplained decision to bundle a requirement is a real ground of complaint.
Can I bid for every lot?
Yes, unless the notice caps the number of lots one supplier may be awarded. A separate tender is normally expected for each lot.
Are lots advertised separately?
No. A single tender notice covers all the lots. A monitoring tool such as Scoutee can flag notices in which at least one lot matches your trade.