Source: https://tendernation.io/glossary/lots

Glossary

# Lots

Separate parts of a procurement, divided by type of work or geography, that suppliers can bid for individually.

Updated 14 Oct 2026

Lots are the separate parts a buyer divides a procurement into, usually by type of work (for example, design, installation and maintenance) or by area (for example, north and south regions). Suppliers can bid for one lot, several or all of them, depending on the rules the buyer sets.

## What it means

[Section 18 of the Procurement Act 2023](https://www.legislation.gov.uk/ukpga/2023/54/section/18) places a duty on buyers to consider lots. Before publishing a tender notice, the buyer must consider whether the work could reasonably be supplied under more than one contract and whether those contracts could appropriately be awarded by reference to lots. If so, it must either use lots or give reasons for not doing so.

[Section 23(4)](https://www.legislation.gov.uk/ukpga/2023/54/section/23) lets the buyer limit the number of lots any one supplier can win, which can stop a single large supplier taking everything. The government's [lots guidance](https://www.gov.uk/government/publications/procurement-act-2023-guidance-documents-define-phase/guidance-lots-html) explains how buyers should approach this.

Lots sit alongside the wider duty in [section 12(4)](https://www.legislation.gov.uk/ukpga/2023/54/section/12) to have regard to the barriers SMEs face and consider whether they can be removed or reduced.

## Why it matters for SMEs

Lots are one of the main ways the rules open large procurements to small suppliers. A £20 million countywide contract may be out of reach, but a £1 million lot for one district or one specialist service may be exactly your size. Lots are especially common in [frameworks](/glossary/framework).

## Practical tip

Bid for the lots you can genuinely win, not every lot available. A focused bid for one lot usually scores better than a stretched bid across five. If a large contract is not split into lots and you think it should be, look for the buyer's reasons for not using lots and raise it, ideally during [preliminary market engagement](/glossary/preliminary-market-engagement), when the buyer can still change its approach.

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## Nearby terms

[FrameworkAn agreement between a buyer and one or more suppliers that sets the terms for awarding future contracts, without committing to any spend.](https://tendernation.io/glossary/framework)[Incumbent supplierThe supplier currently delivering a contract, usually bidding to keep it when the buyer runs a new procurement.](https://tendernation.io/glossary/incumbent-supplier)[Light touch contractA contract mainly for certain social, health, education and other people-focused services, which follows a more flexible set of procurement rules.](https://tendernation.io/glossary/light-touch-contract)[MEAT (most economically advantageous tender)The legacy test for choosing a winning bid under the Public Contracts Regulations 2015, replaced by the most advantageous tender under the 2023 Act.](https://tendernation.io/glossary/meat)[Mini-competitionA short competition run among the suppliers on a framework to award a specific call-off contract.](https://tendernation.io/glossary/mini-competition)[Modern slavery statementAn annual statement, required of larger businesses under the Modern Slavery Act 2015, on steps taken to prevent slavery and trafficking in their supply chains.](https://tendernation.io/glossary/modern-slavery-statement)

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