Private Sector Contracts Tendering business analysis

11 November 2020

The private sector offers a different tendering experience from the public sector. With less legislation and rules binding the private sector process, their requirements from potential partners can be more diverse. This may in fact be an opportunity for an SME to shine if it can promote itself as a viable solution to a company’s supply problem.

Some of the major differences between private sector contacts tendering and public sector tendering are below.

Firstly, finding out about private sector contracts can be more difficult as information can be published in different places: in local and national press or trade publications. You could also ask if a potential customer has a preferred supplier list. Alternatively, secondary contract opportunities could be available with companies which have just won a government contract.

Secondly, the application process may differ greatly from company to company. This may alter the time taken to complete a tender and the necessary groundwork needed by your company to put together tender documents.

Finally, companies putting out private sector contracts don’t have to follow the same guidelines of fairness in the process as public sector organisations do. They may not choose to give you feedback on how well you did at the application process. Pricing may well be more of a factor in the decision-making process.

Private sector contracts offer an SME a very valuable source of new business when approached in an organised and focused way.