Private Sector vs Government Tenders

Looking for new opportunities for your business? Tenders offer a major route to growth for SMEs, and both private sector and government tenders offer you the chance to secure valuable contracts. However, there are major differences between the two.

The bidding process and structure will vary, as will the expectations of buyers. That means that you need to tailor your approach to the type of tender you’re applying for.

In this post, I’ll explain how public and private sector tenders differ and compare the requirements that you can expect from each of them. I’ll also show you how the team at Thornton & Lowe helps organisations to navigate the challenges associated with tendering and seize the opportunities on offer.

What Are Government Tenders?

Government tenders are formal procurement processes used by public sector organisations to acquire goods, services, or works. These could range from construction projects and IT systems to consultancy services or cleaning contracts. The aim is to ensure public money is spent fairly, transparently, and in a way that delivers value to taxpayers.

In the UK, the public sector includes central government departments, local authorities, NHS trusts, education institutions, and housing associations. Together, these bodies issue thousands of tender opportunities each year through platforms like Contracts Finder and Find a Tender. You can also find them via our Tender Pipeline platform.

Unlike informal purchasing or relationship-led contracts, government tenders follow a highly structured set of rules. These are designed to encourage competition, avoid conflicts of interest, and maintain a level playing field. Framework agreements and dynamic purchasing systems (DPS) are also common, allowing approved suppliers to compete for ongoing work once they’ve met the entry criteria.

A report by the UK’s Crown Commercial Service highlighted that over £300 billion is spent each year by the UK public sector on goods and services, demonstrating the scale of opportunity for businesses ready to bid.

How Government Tenders Differ from Private Sector Contracts

Private sector tenders are issued by companies seeking commercial suppliers. These include providers like Tesco, Coca-Cola or HSBC. Government tenders, meanwhile, arise from UK central and local authorities, the NHS, schools, housing associations and more. They're governed by procurement legislation to ensure transparency and fairness.

The differences between government and private sector tendering are significant. Understanding this will help you to navigate the procurement landscape: something that’s essential when deciding how to grow your business through competitive tenders. While both involve competitive bidding, the processes, rules, and expectations can be worlds apart.

Procurement Rules and Transparency

Government tenders are governed by clear procurement regulations, such as the Public Contracts Regulations 2015. These rules require fairness, openness, and equal treatment for all suppliers. They must also demonstrate value for public money. Every decision must be documented and justifiable, which means scoring criteria, deadlines, and submission formats are tightly controlled.

By contrast, private sector buyers have greater discretion, with more freedom to negotiate pricing and terms. They might invite select suppliers to quote or choose a preferred vendor based on relationships or perceived value, without needing to publish opportunities publicly.

Timelines and Documentation

Public sector tenders typically follow fixed timelines. There’s a clear process: pre-qualification, invitation to tender, evaluation, and award. Each stage comes with its own set of mandatory documents, from pricing schedules to method statements and compliance declarations.

Private sector tenders, on the other hand, can move much faster. Buyers may request a proposal one week and make a decision the next. While this offers agility, it also places pressure on bidders to react quickly and without formal guidance.

Award Criteria

Government contracts are almost always awarded based on a Most Economically Advantageous Tender (MEAT) model. This means scoring is based on a blend of quality and price, with weightings disclosed upfront. Evaluation is thorough and designed to be defensible in the event of a challenge. This has changed from MEAT to MAT recently - but the same principles apply.

In the private sector, decisions may be influenced by softer factors. Relationships, past experience, speed of delivery, or added value outside the scope of the tender can all tip the balance. The decision-making process is often less formal, and feedback may be limited or unavailable.

Understanding these distinctions is essential when preparing a bid. Our tender management service ensures your team is ready for both structured public sector bids and more fluid private sector opportunities.

Key Differences Between Private Sector and Government Tenders: Side-by-Side

From strict procurement regulations to transparency requirements and defined evaluation frameworks, bidding for government work demands a distinct strategy. On the other hand, private sector tenders often prioritise flexibility, speed, and relationships. Knowing which type of opportunity best suits your business, and how to prepare effectively, can make all the difference.

In the table below, you can see the major differences side-by-side.

Benefits and Challenges of Government Tenders

Public sector procurement also offers stability, high-value contracts, and recurring opportunities. This can help to build lasting credibility for your business. However, government tenders are not without their challenges.

Major Benefits

• Consistent Opportunities
  The UK public sector is one of the largest buyers of goods and services. Local authorities alone spend more than £70 billion annually on procurement. These opportunities are frequently published, offering a steady pipeline of work across regions and sectors.
• Reputation and Credibility
  Winning a government contract can strengthen a supplier’s reputation. Being selected through a competitive and transparent process signals quality and reliability to future clients, both in the public and private sectors.
• Financial Stability
  Once awarded, public contracts often offer reliable payment terms and a degree of long-term security. Frameworks and DPS models can also lead to repeat work over several years. In addition, public sector clients are less likely to default on payments, making them a financially secure choice.
• Commitment to Fair Competition
  Government tenders are structured to reduce bias. Clear scoring systems and equal access to information create opportunities for new suppliers to compete alongside incumbents.

Common Challenges

• Bureaucracy and Complexity
  Navigating the paperwork can be demanding, from detailed method statements to social value commitments. You could need to upload multiple documents on e-portals, all while meeting stringent compliance criteria. With deadlines often tight, the process can overwhelm teams without experience.
• Highly Competitive Landscape
  With open tenders available to all, competition can be fierce. Bidders may be up against multinational firms with established track records and specialist bid teams.
• Time and Resource Investment
  Preparing a high-quality submission can be resource intensive. For many businesses, especially SMEs, balancing bid development with day-to-day operations is a major hurdle.

Companies that are new to this space often struggle with aligning their offer to the technical, commercial, and scoring requirements of the buyer. Others find it difficult to keep pace with updates to procurement policy and legislation.

This is where expert support makes the difference. Our team offers bid training and outsourced tender writing to help businesses streamline the process, improve win rates, and free up internal resource.

We can also strengthen your brand positioning with expert outsourced marketing: from our team to yours. Contact us to find out more.

Choosing the Right Tendering Strategy

Whether to focus on government tenders or pursue private sector opportunities depends on a business’s goals, resources, and experience. A well-defined strategy not only increases win rates but also ensures time and effort are invested wisely.

Understand Your Capacity

Government tenders demand time, attention to detail, and administrative capacity. If your team is stretched or unfamiliar with structured bids, it may be best to start small or bring in external support. Private sector tenders, while faster, still require a clear and compelling case to win.

Our outsourced bid team works alongside internal staff to manage workload and scale bidding activity without overextending your resources.

Align with Business Goals

Not every contract is a strategic fit. Before committing to a tender, consider:

• Does the scope align with your strengths?
• Can you meet all compliance and delivery requirements?
• Will this help grow your presence in a target sector or region?

For example, if you're aiming to build long-term stability and scale, public sector frameworks may offer more value than short-term private contracts.

Review Win Probability

It’s important to assess your likelihood of success before bidding. This includes analysing competition, pricing expectations, buyer history, and how well your offer aligns with the evaluation criteria.

Our bid readiness assessments and tender pipeline reviews help identify where your efforts are most likely to pay off.

Invest in Bid Capability

Long-term success comes from building consistent processes and improving with every submission. This means developing internal skills, templates, and knowledge banks that make future bids more efficient and impactful.

We offer tailored bid training for teams looking to sharpen their competitive edge and embed best practices across their organisation.

Bid Support for Government Tenders

For many businesses, bidding for government tenders can feel like a leap into the unknown. While this can be daunting for new entrants, a well-prepared bid offers you the opportunity to stand out. That’s why having the right support makes a real difference.

At Thornton & Lowe, we’ve spent over a decade helping organisations win and retain public sector contracts. Our end-to-end support covers every stage of the process, tailored to the needs of each client.

How We Help

• Bid Writing Services
  Our bid writers craft persuasive, compliant submissions that meet all technical and scoring requirements. Whether it’s a full tender response or just key sections, we focus on making every word count.

• Review and Improvement
  Sometimes, the expertise is there, but a second pair of eyes is needed. Our tender review service assesses your draft bids against scoring criteria and offers actionable feedback to strengthen the final submission.

• Tender Management
  For larger or time-sensitive tenders, our project-managed approach ensures nothing is missed. We coordinate inputs, monitor progress, and maintain quality across the submission.

• Ongoing Strategy and Pipeline Support
  Bidding should be proactive, not reactive. With our pipeline development and tender tracking tools, we help you identify and prepare for the right opportunities before they go live.

• Technology-Backed Efficiency
  Our bid-tech solutions streamline the bidding process and improve consistency across documents, messaging, and delivery plans. This gives you greater control and visibility across the entire tender lifecycle.

FAQs

Do I need prior experience to bid for government tenders?
Not always. While experience helps, many tenders allow for new suppliers, especially SMEs, provided you meet the stated requirements.

How long does the process take?
From notice to award, public sector tenders can take 4–12 weeks, depending on complexity. Some frameworks or DPS (Dynamic Purchasing Systems) may have longer onboarding processes.

Are there hidden costs?
While there are no “hidden” costs, preparing a strong bid does require time and potentially external support. Planning and resourcing are essential.

What’s the difference between a framework and a tender?
A framework is a pre-approved list of suppliers eligible for contracts. You must be on the framework to receive certain tenders. A direct tender is an open competition for a specific contract.

Choosing the Right Path Forward

Government and private sector tenders each bring unique advantages and challenges. The right choice depends on where your business is now, where you want to go, and how ready you are to navigate the demands of each route.

Public sector contracts offer transparency, long-term value, and a consistent pipeline of opportunities. Private sector tenders, meanwhile, provide agility and the chance to build work through strong relationships and rapid decision-making.

Whichever route you pursue, success comes from preparation. Having the right strategy, tools, and expertise behind your bids increases your chances of winning and builds long-term capability.

At Thornton & Lowe, we’ve helped thousands of businesses confidently compete for public sector work. Whether you're exploring tenders for the first time or looking to improve performance, our team is here to support your journey.