The federal budget 2021/2022 has demonstrated that the Australian economy is strengthening. Combined with a general good health and improving labor market outcomes, the Government’s temporary and targeted Covid-19 support has proved to be effective in protecting the economy. The budget has delivered big spending commitments including increased spending on infrastructure related sectors.
Jason Cooney, Director at The Tender Team believes that with another $15.2 billion in commitment to new infrastructure projects, we can expect to see major activity in the construction sector across a range of projects such as transport, buildings and energy. This is set to give a rise in tenders being up for grabs! As a construction business, you can get ahead of your game and set yourself up for success.
Here are the top insights and tips for securing your place amongst the businesses geared for growth in 2021 – from submitting the winning tender to securing funds for undertaking the project…
Where can I find tenders suitable to my business?
- Illion TenderLink – you can sign up to search TenderLink’s database for hundreds of tenders available to businesses. You can search by sector and take advantage of market research and over 41000 opportunities per year.
- Tender.net – you can search for tenders across Australia, New Zealand and Pacific Islands. You can search for government and private tenders based on location, size and industry
Tips for writing a winning tender
- Make sure to shine a light on your methodology and experience with relevance to the tender requirements. As part of the tender application, you may be required to write a development program. Your methodology of undertaking the project should reflect that program. For example, if the tender is for building near a school, make sure to include in your methodology, how you plan on carrying out your operations whilst ensuring compliance with school area requirements. This can include managing noise, traffic control and safe truck pathways
- Adding graphics and illustrating your program and methodology can help benefit your tender application. Produce visually enhanced presentation for a better engagement level
- Establish at least three key wins or messages in response to the tender criteria such as a focus on safety and community management
What are the common mistakes while applying for tenders?
- Choosing wrong tender – make sure your experience aligns with the type of tender you are applying for and you have the resource capability to support the project. Many businesses end up wasting time and resource applying for tenders not suitable to them
- Tender project management – tender applications can have over 50 questions and can be very complicated to write out. Make sure you allocate time to answer all questions especially those related to compliance. Failure to do so may result in delays and missed deadlines. We recommend having a dedicated tender project manager to take charge of the tender application
- Strict compliance – infrastructure projects especially government projects can have lengthy compliance sections. It is very important to provide information that addresses these requirements to avoid having your tender rendered unsuitable
Is the tender process different between states and national level?
There is no major difference between the tender process between various states or at national level. However, some states such as Victoria may have a preference to choose a local based business. In this case, you can still apply for a tender in Victoria. However, it would help if you can demonstrate how you would contribute to the local state economy whilst undertaking the project. This could include buying material from local suppliers and hiring labor locally.
It can also benefit to adopt state or local level characteristics into your tender application. For example, the Northern Territory community refers to itself as Territorians. You can use this language reference in your tender to increase your chances of take up.
How does The Tender Team assist in helping businesses win tenders?
The Tender Team works with businesses on two models to ensure they produce a winning application:
- Reviewing the application once a business has completed the tender process and providing feedback, suggestions and insights
- Taking charge of writing the tender application for the business based on information provided by the business
I have won my tender; how do I fund my business?
Franco Bombardieri, Senior Business Development Manager at Money Tech agrees the business funding space is well diversified with over 100 plus lenders who can provide funding to businesses particularly those engaged in the construction sector. You can go for an unsecured loan which can be in your hands within days but comes with very high interest rates. You can also go for the big banks which guarantee lowest rates but can take weeks with in-depth documentation requirements.
Alternatively, you can use Money Tech’s ‘Low Doc Line of Credit’ to finance your operations. Money Tech guarantees quick turnaround and low rates to suit your business needs. It’s new product ‘Low Doc Line of Credit’ is designed to help you fund your payments for materials, contractors and invoices. Money Tech will pay your invoices and you have up to 120 days to pay back allowing you time to commence work and earn revenue before repaying your loan.
Discover funding options like Money Tech and more on Swoop here.
What are the pitfalls when looking for financing?
We strongly advise you to start thinking about how you will fund your project before completing your tender process. Secure funding can take anywhere between couple of days or several weeks if considering big banks. You don’t want to win a tender and then get stuck sourcing your funding. You might end up with a higher interest rate product. Looking at your funding options in advance can help you shop for the best product with the lowest rates. You can even hold down your product for a small fee whilst you wait to commence your operations.
Ready to grab new opportunities in the construction space? Explore hundreds of new tenders coming your way post budget 2021/ 2022. Use the above tips to get ahead in the tender process. You can also reach out to our partners , The Tender Team for assistance in completing your tender applications. If you’re interested in seeking funding to help finance your business growth, Swoop’s team of experts can help you secure the ideal funding for your business. Simply sign-in or register an account for free, to get started.