Benefits of Tendering | Advantage of Tendering (6)

Benefits of Tendering

Are there KNOWN benefits of Tendering?

Tendering can be intimidating, especially for SMEs, because buyers sometimes appear to prefer ‘big business’ suppliers

However, keep in mind the benefits you have versus larger organizations with higher overheads.

It is likely more important than ever to ensure a steady flow of work.

It might surprise you to hear that over the course of lockdown, we have continued to support a steady stream of businesses with their tendering efforts.

In many sectors, buyers continued to publish calls for work and invite potential suppliers to tender.

However, this wasn’t the case for all industries.

As we’re all aware, various sectors struggled through this difficult time. There is good news, however. As Tenderzville Portal, we support businesses by creating a community and rigorously search for new contract opportunities , train, consult in order to help business return to work and maximize on each opportunity.

So, what are the benefits of tendering for work? What is a tender and why is it important?

Let’s look at a few advantages of tendering for contracts.

Understandably, many SMEs don’t know how to tender for work. If we’re honest, the process can seem complex on the surface.


We know that tendering for contracts is a full-time job because it’s what we do. With that being said, thousands of businesses tender for work. It’s part of their business development strategy. There must be a reason for this – let’s explore it.

The benefits of tendering are:

1. Guaranteed pay (public sector)

One of the biggest advantages of tendering for work is the guaranteed payment. In the public sector, suppliers benefit from guaranteed pay upon winning a contract. This is obviously a sizeable advantage to tendering for work. Unlike private buyers, public organisations are bound by their contractual agreements to pay the awarded supplier.

2. The government wants to award SMEs

If you’re an SME under the assumption that only ‘big businesses’ stand a chance of winning a contract, consider the government’s target. This means that public sector businesses have a goal to actively award contracts to smaller businesses.

3. Gain experience

In order to progress and win larger contracts, you must present relevant case studies and demonstrable experience. Tendering for contracts as part of framework agreements or dynamic purchasing systems (DPS) is an effective way of building this experience.

We often advise first-time tenderers to begin with these types of contracts.

4. Advantage of Tendering : Make contacts

Continuing from the previous point, in order to gain experience and provide case studies, you need to make contacts. Building relationships will help you to work with more buyers and, in turn, gain valuable experience. When tendering in the future, you will be able to demonstrate works that you have previously completed and impress buyers with your previous contract examples.

As every business owner knows, without contacts you are in danger of your business plateauing. To grow and expand your horizons, you will more than likely need to build a base of contacts who can provide opportunities for inter-trading and collaborations.

Also, take advantage of our community to link up with other suppliers and share your experiences with each-other.

5. Sustainability

One of the many advantages of tendering is that you can secure long-term contracts. Winning a place on a long-term contract or framework agreement can have a significant impact on the sustainability of your business. To any business owner, this is an attractive prospect.

6. Take control of your delivery

Winning the contracts you want to deliver is one of the biggest advantages of tendering for work. We’re not suggesting that you will simply have your pick and win all the contracts you tender for.


However, by choosing the contracts you wish to bid for, you are effectively filtering your opportunities from the beginning. With this in mind, it is important to note that there are a few things you should consider before choosing the contracts to bid for.


We advise that you complete the following checklist before commencing any work on your tender responses.

Can you deliver the contract if you win?

This might sound obvious, but you’d be surprised at the number of businesses who don’t consider their own resources prior to bidding. Of course, in most cases, the buyer will be able to assess your capabilities based on the company information you provide.

Therefore, it is unlikely that you would be awarded a contract that you can’t deliver. However, you don’t want to waste time, resources and money crafting an intricate tender response only to be eliminated from the process based on capability.


Have you checked the financial thresholds?

In order to ensure that the awarded supplier can deliver the work, buyers will often set a minimum financial threshold. This is often reported in the earlier stages of the tendering process to ensure that the potential suppliers meet the requirements before they proceed any further. If the financial threshold isn’t outlined, there is another way of determining whether you will meet the requirements.


As a general rule of thumb, you should not bid for projects with a budget that is greater than half of your annual turnover.


Do you have experience and evidence you can provide?

In the majority of cases, buyers will ask to see at least three relevant case studies as part of your tender response. It is crucial that you have these case studies developed, branded and ready to go.

This will not only save time during the process, but it will also allow you to assess whether or not the contract is right for you. It is also worth noting, that in the public sector, it is common for buyers to ask to see three years of accounts. The accounts will likely need to display the company name that you are currently trading under.


Is the contract profitable?

It can be easy to get enthusiastic when you see a contract that you are eligible for.

However, before laying the groundwork of your bid, it is crucial that you consider your profit. While the contract budget might sound appealing, assess the cost of your delivery and the resources the contract will require before moving forward.


Further support

In this blog, we have addressed a few of the main advantages of tendering for work.

However, if you require further support with bidding for contracts or responding to a specific tender, please feel free to get in touch.


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