Exclusion grounds are legally defined reasons that disqualify a bidder from participating in a procurement procedure. Under EU law—specifically Article 57 of Directive 2014/24/EU—these grounds are split into mandatory exclusion grounds (such as convictions for corruption, fraud, money laundering, human trafficking, non-payment of taxes or social security, or grave professional misconduct) and discretionary exclusion grounds (such as bankruptcy, significant poor performance, conflicts of interest that cannot be remedied, misrepresentation, or distortion of competition).
Contracting authorities are required to automatically exclude any bidder who meets a mandatory exclusion ground. Discretionary grounds allow authorities the option to exclude a bidder based on the seriousness of the situation and relevance to the contract. Bidders declare the absence of exclusion grounds via mechanisms like the ESPD, while actual documentary evidence may only be required from the winning bidder.
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