We talk often about how to go about tendering and improving your success rates however we rarely discuss the merits of tendering in and of itself. In truth, many may not have even considered that tendering for contracted work is a viable or even a desirable option. With this in mind, this article looks at some of the key benefits of tendered contracts and why – if you haven’t already – you should consider giving it a go.
Long-Term / Reliable Work
Tendered contracts, particularly in the public sector can often span up to and beyond 5 years. In contrast to smaller private jobs, long-term publicly tendered contracts therefore ensure a steady flow of guaranteed work and cash flow which can be invaluable especially to SMEs.
This regular work alleviates pressure on your sales team as a constant flow of smaller sales is not an absolute necessity. It also allows your senior management to focus on other important aspects of business which are as equally important in cementing your plans for growth.
Not only do long-term contracts guarantee a steady flow of work, but they also guarantee (to an extent) consistency in the work.
As you tender for a specific service, you will only need to perform that one service. In most cases therefore, you will need to pay much less consideration to planning, risk assessing and service delivery. This drastically streamlines delivery compared to smaller, bittier contracts.
Put simply, the more contracts you win, the better your reputation will become in the industry.
As you gain experience you will amass a library of quality case studies and contract examples to use in future tenders. Your win rates should become consistently higher and begin to snowball as your reputation and experience grows.
Public sector clients in particular love public sector experience. Once you have your foot in the door with one public contract, your access to others will become much easier.
Apart from tendering, you will also have the opportunity for your name to become much more well known by sight. Make sure to have branded vans, uniforms, products etc. to ensure that everyone knows who you are while you work.
Make Very Good Money
Tendered contracts are good money. Most tenders offer contract spends often in excess of £100k per year. You would be hard pushed to gain such high values through smaller, private, single-job contracts.
Teamed with the consistent cash flow that long-term contracts offer, you will soon find that your revenue and profits will soar.
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