 "3 benefits of tendering for work in the public sector")
You may be hesitant to begin bidding on contracts, but do you understand all of the advantages of tendering? This blog will go over the benefits of tendering for work for SMEs in the public sector. Continue reading to learn more.
Long-term revenue potential: Many public sector contracts have a fixed term and can be renewed, providing your company with a consistent source of revenue.
Tendering for public sector contracts can provide your company with the opportunity to work with the government and potentially other large organisations.
Access to new markets: Public sector contracts can help your company enter new markets and expand its customer base.
Winning a public sector contract can help your company's reputation and increase its credibility with other potential customers.
Positive community impact: Because many public sector contracts focus on improving services or facilities for the local community, winning a contract allows you to contribute to the betterment of your community.
Payment is guaranteed to suppliers. One of the most appealing aspects of tendering is that suppliers are guaranteed payment in the public sector. This is because public sector buyers are required by contract to pay suppliers on time. To comply with the Prompt Payment Code, the Crown Commercial Service (CCS) must pay contractors within 60 days of invoicing (2008).
However, this isn’t always the case for buyers in the private sector. These buyers aren’t bound by the same agreements as buyers in the public sector.
Another significant advantage of tendering is that it allows businesses to gain experience. The greater your experience, the more contracts you can bid on and win. The more contracts you win, the larger your company will become.
This is especially good news for SMEs that are having difficulty presenting relevant case studies in their tender responses. To get started, many businesses will tender for contracts as part of framework agreements or Dynamic Purchasing Systems (DPS'). These contracts are ideal for businesses with little experience. After completing these projects, you can work toward the financial requirements for becoming a sole supplier.
The government wishes to recognise SMEs. Many SMEs believe they cannot compete with large corporations when bidding for contracts. This, however, is not the case. Indeed, the UK government has set a target of spending at least £1 for every £3 on SMEs.