What is a tender? A plain-English guide for UK businesses

2026-06-17 · 12 min read

This guide is written for small businesses and occasional bidders who want to understand the process themselves — not hand it to an agency. If that's you, read on.

The 30-second answer

A tender is a formal invitation to supply goods or services to an organisation — usually a public body — in exchange for a contract. The buyer publishes a specification. Suppliers respond in writing. The buyer scores the responses and awards the contract.

That's the process in its simplest form. In practice, tenders involve structured documents, strict deadlines, scoring criteria, and a formal evaluation process. But the core logic is straightforward: the buyer sets out what they need, and you make the case for why your organisation is the right choice.

If you've been told to "go after a tender" and aren't sure where to start, this guide covers everything you need to know before you do.

What "tender" actually means in UK procurement

The word tender comes from the Latin tendere — to stretch, or to offer. In a commercial context it means a formal offer to supply. When a public sector body wants to buy something above a certain value, it is legally required to run a competitive process. That process is called a tender.

The requirement exists because public money is involved. Councils, NHS trusts, government departments, and other public bodies can't simply hand contracts to their preferred supplier. They have to run an open, fair process that gives multiple suppliers an equal chance to compete.

That legal obligation is the reason tenders exist — and the reason they follow a structured format. The rules are set by procurement law, most recently updated by the Procurement Act 2023, which came into force in February 2025.

For suppliers, tenders represent genuine opportunity. The UK public sector spends around £300 billion a year on goods and services. A significant proportion of that spending is open to businesses of all sizes — if they can navigate the process.

Tender vs RFP vs PQQ vs ITT vs quote

Procurement uses a lot of acronyms. Here's what the main ones mean and how they relate to each other.

The practical difference that matters most for most businesses: a quote is informal and quick; a tender is formal, structured, and scored. Tenders take significantly more time to prepare and must meet specific requirements to be considered.

The ITT is the document you'll spend most of your time on. It contains the specification, evaluation criteria, word counts, and submission requirements. Everything you write must respond directly to what the ITT asks for.

Who issues tenders in the UK

Central government

Government departments — the Home Office, HMRC, the Department for Education, and so on — issue tenders for everything from consultancy services and IT systems to facilities management and training. Central government contracts are typically high value and published on Find a Tender Service (FTS).

NHS and local authorities

NHS trusts, integrated care boards, and local councils are among the most active buyers in the UK. They purchase an enormous range of services: healthcare, social care, maintenance, professional services, catering, digital, and more. Many have their own procurement portals in addition to Contracts Finder. NHS contracts often involve framework agreements, which require a separate qualification process but can deliver repeat work once you're on.

Private sector framework buyers

Some large private sector organisations and housing associations run procurement processes that closely resemble public tendering. While they're not subject to the same legal obligations, they often follow similar structures — particularly if they receive public funding or operate in regulated sectors.

What a tender document contains

Tender documents vary, but most contain the same core sections.

The specification sets out exactly what the buyer wants delivered — scope, volumes, standards, and any mandatory requirements. Reading this carefully is the single most important thing you can do. Many companies lose marks by responding to what they thought the buyer wanted rather than what the specification actually says.

Evaluation criteria and weightings tell you how your response will be scored. You might see a 60/40 split between quality and price, or 70/30, or even 80/20. Word counts are set by the buyer — you don't get to allocate more words to higher-weighted questions. But weightings should directly inform where you invest your thinking time. A 40% weighted technical approach question deserves more careful planning, stronger evidence, and closer review than a 10% weighted question. Reading the weightings carefully before you start drafting is time well spent.

Questions and word counts are the sections you'll actually write. Most ITTs contain several questions, each with a word limit. Exceeding the limit can result in your response being cut or disqualified.

Mandatory requirements are pass/fail criteria. Insurance levels, accreditations, financial thresholds. If you don't meet them, your response won't be evaluated regardless of how well you write it.

Submission instructions cover format, deadline, and portal. Late submissions are almost always rejected without exception. Almost all tenders are submitted via an electronic portal. It's worth bearing in mind that these are not always straightforward, so don't leave submission to the last minute and miss the deadline because you're navigating a new portal.

The 7 stages of a typical tender

Understanding the full lifecycle helps you plan your time and avoid being caught out by stages you didn't know were coming.

1. Prior Information Notice (PIN) — the buyer signals that a contract is coming. Not always published, but worth watching for if you're targeting a specific buyer.
2. Contract notice / advertisement — the tender is formally published on Contracts Finder, Find a Tender, or a sector portal.
3. Selection stage (SQ) — suppliers are screened for basic eligibility. Financial standing, insurance, relevant experience. Pass/fail.
4. Invitation to Tender (ITT) — shortlisted suppliers receive the full tender documents and are invited to respond.
5. Submission — you submit your response by the deadline. Most buyers use electronic portals.
6. Evaluation — the buyer scores responses against the published criteria. This can take weeks.
7. Award and standstill — the buyer notifies all bidders of the result. There's a mandatory standstill period before the contract is signed, during which unsuccessful bidders can challenge the decision.

Not every tender follows all seven stages. Some run as single-stage processes where the SQ and ITT are combined. Others use frameworks, which have their own multi-stage structure.

Managing these stages without missing a deadline is where many small businesses come unstuck — particularly when a bid is running alongside normal business operations. BidMate tracks each stage and surfaces what needs attention, so nothing slips between the cracks. See how BidMate works

How tenders changed under the Procurement Act 2023

The Procurement Act 2023 replaced the previous legislative framework — which dated back to 2015 EU-derived regulations — and introduced several changes.

The Central Digital Platform replaced the fragmented system of multiple procurement portals with a single supplier registration system. In theory, you register your organisation's details once and they're available to any buyer using the platform. In practice, adoption is still rolling out and many buyers continue to use their existing portals in parallel.

Selection Questionnaires replaced PQQs. The old Pre-Qualification Questionnaire was a major barrier for some organisations — buyers often used lengthy, bespoke PQQs that required significant effort to complete even before you reached the ITT stage. The Act introduced a standardised Selection Questionnaire, intended to reduce duplication and make it easier to demonstrate capability across multiple bids.

Transparency notices mean buyers must publish more information about their procurement activity, including contract award decisions and reasons for exclusion. This creates more visibility into what's being bought and who's winning it — useful for any business trying to understand a market before entering it.

30-day payment terms now cascade down the supply chain. If you're working as a subcontractor rather than a prime, you're entitled to payment within 30 days from your prime contractor — not just from the public body at the top of the chain.

Direct awards are more tightly constrained. Buyers have less flexibility to award contracts without competition, which in principle creates more opportunities for new entrants.

The Act's intent is genuinely positive for smaller businesses — SME spending targets are written into the framework — but the structural advantages that larger, experienced bidders hold haven't disappeared. Knowing the framework exists is useful; building a process that takes advantage of it is what actually changes win rates.

Should you bid? The bid/no-bid question

Not every tender is worth pursuing. Before you invest time in a response, it's worth asking a few honest questions.

• Do you meet the mandatory requirements? Insurance levels, turnover thresholds, and sector accreditations are pass/fail. If you don't meet them, the response won't be evaluated.
• Is the incumbent beatable? If the current supplier has delivered the contract for several years without complaint, dislodging them requires a compelling case — not just a competent response.
• Can you hit the deadline without damaging other work? A rushed bid is usually a poor bid. If the timeline doesn't give you enough time to do it properly, the opportunity cost may not be worth it.
• Does the contract value justify the effort? Tender preparation takes time. The cost per contract won is higher than most people realise. Smaller contracts with large tender requirements often don't stack up.

Common first-time mistakes

Starting with the writing. Most of the work in a successful bid happens before a word is drafted — understanding the buyer, planning your response, identifying your win themes, working through the finances and understanding what you are bidding for. Jumping straight to writing can feel productive but rarely gets to a good response.

Answering the wrong question. Tender questions are specific. Buyers score against specific criteria. A well-written response to a question that wasn't asked scores poorly. Read each question carefully, identify exactly what's being asked, and answer that — not a more comfortable version of it. It is very common for new bidders to get "the bidder didn't answer the question" as feedback.

Ignoring the weightings. A 5% weighted question and a 30% weighted question deserve very different amounts of your time. It shows you what matters most to the buyer.

Generic social value commitments. Buyers have seen every version of "we will support local employment and reduce our carbon footprint." Specific, evidenced, measurable commitments score. Vague pledges don't.

Leaving it too late. Tender portals go down. Word counts take longer than expected. Appendices need formatting. Build in more time than you think you need — particularly for your first few submissions.

Not reading the submission instructions. Font size, file format, naming conventions, portal registration. These are administrative requirements, not suggestions. Getting them wrong can result in your response being rejected before it's read.

Do I need a bid writer? Your options

It depends on what relationship you want with the process.

BidMate is built for businesses that want to own their bids — with proper structure, an evidence library, buyer research tools, and quality checks built in. The writing is yours. The process isn't something you have to invent from scratch each time. Start your free trial

A bid writer brings external expertise and experience, and you're paying for that accordingly: expect £550–£1,200 a day. The more you invest, the more you're buying professional judgement alongside your own.

What about RFP software like Responsive or Loopio? These are strong, well-regarded products — but they're built for a different market. High-volume commercial RFPs, largely US-facing, where the challenge is managing content at scale across sales proposals. UK public sector tendering has its own evaluation frameworks, social value requirements, MAT scoring, and procurement language that tools designed for RFPs don't account for. If your work is primarily commercial or US-facing, they're worth a look. For UK public sector contracts, they'll leave meaningful gaps.

FAQ

Do I need a bid writer to respond to a tender?

Not necessarily. What you need is a clear process: enough time, a good understanding of the specification, and evidence of your capability. A specialist bid writer adds most value when the opportunity is high-value, competition is strong, or you simply don't have internal capacity. For most businesses building a regular bidding capability, the priority is a repeatable process rather than outsourcing each response.

How long does a tender response take to write?

It depends on the complexity of the ITT and the number of questions. A simple five-question ITT might take 20–30 hours. A complex multi-lot tender with technical questions, case studies, and pricing schedules can take 80–100 hours. The time investment is one of the main reasons the bid/no-bid decision matters.

Where do I find public sector tenders?

The main free sources are Contracts Finder (for contracts above £12,000 with central government and above £30,000 with other public bodies) and Find a Tender Service (for contracts above £139,688 including VAT for central government goods and services). The Central Digital Platform, introduced under the Procurement Act 2023, is intended to consolidate these over time. Many NHS and local authority buyers also publish on their own portals.

What is MAT scoring?

MAT stands for Most Advantageous Tender — the evaluation framework introduced by the Procurement Act 2023. It replaced the previous MEAT (Most Economically Advantageous Tender) framework, dropping "economically" to better reflect that buyers must consider quality, social value, and wider factors alongside price. In practice, the MAT framework means buyers score responses across both quality and price criteria, with weightings published in the ITT. You may still encounter the term MEAT in older tender documents and guidance — it refers to the same underlying approach.

Can smaller businesses realistically win public sector contracts?

Yes. The UK government has specific targets for SME spending and the Procurement Act 2023 includes measures intended to make it easier for smaller businesses to compete. The practical barriers are real — process, time, and resources — but they're not insurmountable. Businesses that build a proper bidding process win contracts consistently.

What happens if I miss the submission deadline?

Almost always, your response is rejected. Buyers have very limited discretion to accept late submissions, and most don't exercise it. Portal issues and last-minute technical problems are not accepted as reasons for lateness. Submit early.