Increased profits, mitigation of the risk of your main contractor going under, and greater control over project delivery. In the current climate it’s an attractive prospect. We speak to many growing subcontractors like you, looking for greater control over project delivery and better protection from main contractors going under.
The 2023 Procurement Act, scheduled to take effect in 2025, brings changes that may help SME subcontractors in competing for contracts. The summary of the Act notes, "The new Procurement Act will benefit suppliers of all sizes, particularly start-ups, scale-ups, and small businesses."
Common concerns blocking subcontractors like you from bidding for main contracting opportunities:
I have to demonstrate quality management and safety processes and there is a long-winded question section.
Accreditations will make your life easier, holding ISO9001, ISO14001 and an SSIP accreditation (like CHAS or Acclaim) will save you time on the standard prequalification process. Such accreditations provide a pass through on a number of question sets. Construction Bid can link you with partners who can assist in the accreditation process.
The tender process requires me to provide references, I don’t have any main contractor experience.
Gaining references when transitioning from a subcontractor to a main contractor requires innovative thinking. Your existing project experience will undoubtedly be tied to a main contractor who might not be willing to vouch for you (as you are now in competition!). Consider if there are any supportive end clients who could serve as referees.
What contracts should I be going for?
Clearly define your contracting objectives. Identify the specific contracts you aim to secure, considering factors such as location, scope, duration, and value. Initially, I suggest seeking out opportunities that have a two-stage process: a prequalification phase followed by a tender stage. This approach ensures that the second stage, known as the Invitation to Tender (ITT) and often the most time-consuming part, is restricted to a select group of potential providers rather than being an open competition. This increases the likelihood of your investment in the tender process yielding successful results. If you can further refine this into a defined list of procuring bodies (e.g. local authorities) with whom you wish to work you can then engage with them prior to opportunities being released enabling you to understand their needs (critical for providing a great tender response) and for you to gain insight into future contract opportunities – do not underestimate the value of good networking and business development!
I don’t know where to look for suitable contract opportunities.
Many subcontractors struggle to find direct contracts with end clients. Start by registering on the Government portals, Find a Tender and Contracts Finder (links below). Set up an automated search based on your ideal criteria to receive email alerts for matching tender opportunities.
I’ve found a lot of current opportunities that I’d like to bid for.
A scatter gun approach of tendering for everything to increase your chances of picking up work is ineffective! Use a bid/no bid crib sheet (which we can provide) to confirm if the tender aligns with your requirements and capabilities, whether you have the necessary accreditations and experience, meet turnover requirements, and have a shot at winning. This quick assessment saves time and money during tendering and helps you select the best opportunities. Also consider procuring bodies with whom who you already have a relationship.
Construction Bid has hands-on experience in helping subcontractors transition into main contractors through competitive bidding. We have helped a former subcontractor grow from a £5m turnover to over £20m annually and assisted another subcontractor in winning their first major main contractor project—a three-year contract worth £2m annually.
Our expertise in bid writing can position you to effectively respond to SQs and Tender stage opportunities even if you have no prior main contractor experience.
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