Public and private tenders can involve various procurement methods—including open tenders, RFPs, and panel arrangements—each suited to different project needs and contract types. Learn more about the different procurement types used in Australia.
Tendering is a critical aspect of procurement, serving as a formal process for businesses to secure contracts by offering their goods or services. In Australia, tenders can be broadly categorised into public and private tenders. As anyone regularly involved in the tendering process will know, there are distinct characteristics that differentiate the two, with their own unique sets of rules, expectations, and implications. Identifying these differences is essential for navigating the tender landscape effectively and making informed decisions when identifying the most suitable opportunities for your business.
In this blog:
- What are public tenders?
- Key characteristics of public tenders
- What are private tenders?
- Key characteristics of private tenders
- key differences between public and private tenders
- What This Means for Australian Businesses
What Are Public Tenders? (a.k.a Government Tenders)
Public tenders are procurement opportunities offered by government entities at various levels (federal, state, or local). These tenders are typically published openly, allowing any eligible business to submit a bid. The overarching goal of public tendering is to ensure that government spending is transparent and competitive and delivers value for money to the taxpayer.
Key Characteristics of Public Tenders:
Transparency and Fairness
Public tenders are subject to strict regulations to ensure transparency, fairness, and equal opportunity. All tender processes must adhere to the Commonwealth Procurement Rules (CPRs) and relevant state or territory guidelines.
Detailed Documentation
Public tenders often require extensive documentation. All Suppliers must provide detailed information about their capabilities, pricing, and compliance with specific requirements, such as sustainability, insurance and financial obligations.
Rigorous Evaluation Process
Public tenders are evaluated based on clearly defined criteria. The process is typically thorough and may involve multiple stages, including prequalification, technical evaluation, and financial assessment.
Open Access
Public tenders are usually published on government procurement platforms like AusTender or state-based portals like Buy NSW to ensure they are accessible to all potential suppliers.
Legal and Regulatory Compliance
Compliance with legal and regulatory frameworks is paramount in public tenders. Government entities must be confident that their Suppliers will adhere to laws related to labour, safety, environment, and anti-corruption.
What Are Private Tenders?
Private tenders are issued by private sector companies, ranging from developers and facility managers to large enterprises seeking subcontractors or specialised services. These are often less formal and not always publicly advertised.
Instead, private tenders are often issued:
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Through industry networks
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Directly to pre-qualified suppliers
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Via an expression of interest (EOI)
Key Characteristics of Private Tenders:
Flexibility
Private tenders typically offer more flexibility in terms of processes and requirements. Companies often have wider leniency in tailoring the tendering process to suit their specific needs and are not bound by the same level of regulatory oversight as public tenders.
Selective Bidding
Unlike public tenders, private tenders may involve a closed or limited bidding process, where only invited suppliers are allowed to bid for the tender. This selective approach aims to streamline the process and ensure only qualified and trusted vendors are considered.
Negotiation Opportunities
In private tenders, there is often more room for negotiation. The tendering process may include discussions between the Buyer and potential Suppliers to refine the proposal and pricing before a contract is awarded.
Varied Documentation
There is typically a wide and varied scope of documentation required for private tenders. Some may require detailed proposals similar to public tenders, while others may be more straightforward, focusing on key deliverables and costs.
Confidentiality
Many private tenders involve sensitive information requiring both parties to sign non-disclosure agreements (NDAs) in order to protect proprietary data and business secrets.
Summary of the Key Differences Between Public and Private Tenders
| Feature | Public Tenders | Private Tenders |
| Regulatory Environment | Heavily regulated and must comply with government procurement rules to ensure transparency and accountability | Private tenders are governed by the company’s procurement policies, offering more flexibility |
| Process & Accessibility | Accessible to all eligible suppliers through open tendering | May be restricted to a selected few or ‘invite only’ |
| Documentation & Evaluation | Generally require more extensive documentation and have a more rigorous evaluation process | Can be more streamlined and focused on the company’s specific needs |
| Scope for Negotiation |
Typically a more structured and fixed procedure |
Often allows for greater negotiation during the tendering process |
| Contract Duration | Tend to have longer contract durations and are less susceptible to market fluctuations. Governments typically prioritise long-term commitments and seek reliable partners | Usually shorter, project-based contracts that require companies to consistently seek new opportunities to sustain growth |
| Confidentiality | Usually involve a lesser degree of confidentiality | Usually involve a higher degree of confidentiality |
What This Means for Australian Businesses
Whether you’re in cleaning, construction, ICT, healthcare, or manufacturing, understanding the tendering environment helps you prioritise your efforts. Here’s what to consider:
1. Strategy & Fit
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If your business is highly compliant and can meet government requirements, public tenders offer stable, long-term revenue.
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If you're better at building relationships and offering flexible, tailored services, private tenders may provide more immediate wins.
2. Resourcing
Public tenders often require:
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Greater investment in documentation
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Registration on eProcurement platforms
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Time to build compliance (insurance, certifications, policies)
Private tenders:
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May demand quicker turnaround
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Rely more on industry connections and referrals
3. Business Positioning
Winning a government contract can:
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Boost your reputation
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Lead to panel inclusion (preferred supplier lists)
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Unlock access to recurring work and larger-scale projects
Private contracts:
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Help build relationships with key players in your industry
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Lead to repeat business without the need for ongoing tendering
Summary
Both public and private tenders play vital roles in Australia’s procurement landscape. Each has its own advantages, challenges, and requirements. The key is understanding where your business fits best and being prepared when opportunities arise.
Whether you're aiming to win a government contract or become a preferred supplier to private sector clients, Australian Tenders can help you stay ahead. With up-to-date tenders from across Australia and New Zealand, we take the guesswork out of finding the right opportunity.
