Most contracts are not out of reach because a small firm could not do the work. They are out of reach because of how they are packaged. Three features of a notice account for most of it.
The size of the contract
A very large contract asks a lot beyond the work: the capacity to deliver at volume from day one, the balance sheet to carry mobilisation, and the resources to write a long bid. The headline value is not the right measure, though. What matters is what you would actually be delivering.
- Look at the lots
- A £24 million contract in forty lots is forty jobs of about £600,000.
- Look at the years
- £2 million over five years is £400,000 a year.
- Look at the framework
- A framework's value is the most that might be spent through it by everyone, not what any one supplier will receive.
A minimum turnover
A turnover requirement is a financial standing test. Where it is stated, it is a hard gate: fall below it and your tender will not be assessed. Government guidance has long been that a requirement should not normally exceed twice the contract value, so an unusually high figure is worth a clarification question. Buyers can also accept other evidence of financial standing, and some will say so.
If your turnover falls short, bidding as part of a consortium or as a named subcontractor is often the practical route.
National coverage
A contract that has to be delivered across the whole UK rules out a firm that works in one region, however good it is. Check whether the requirement is genuine, though. Some notices tick every region on the form out of habit. Others are divided into regional lots that a local firm can bid for.
Things that are less of a barrier than they look
- Insurance levels
- Required cover can often be arranged or increased on award. Check with your broker before ruling a contract out.
- Accreditations
- Some take weeks rather than months. If a contract is worth it, starting the application can be worth it too.
- Case study requirements
- Relevant experience does not have to be public sector experience, unless the question says so.
How Bidwire flags these
Bidwire does not ask a model whether a small firm could bid. We tried that early on and it was wrong in both directions: a £30,000 job marked unsuitable, a £21 million one marked fine. Instead, the facts are extracted from the notice (lots, any stated minimum turnover, whether national coverage is required) and the verdict is worked out from those and the value per lot.
So when a notice is flagged, the reason is listed in plain words, and you can decide for yourself whether it really applies to you. Notices without any of those barriers carry a small-firm friendly badge, and you can save a search that shows only those.