Read our frequently asked questions about tenders
- What is a tender?
- Why are there more government than private tenders?
- Can anyone respond to a tender?
- Do you need a business number to tender (ABN/NZBN)?
- Do you have to be registered for GST to respond to a tender?
- Do you have to be a company to respond to a tender?
- Do you have to be an Australian/New Zealand company to respond to a tender?
- Do you have to have insurance to respond to a tender?
- Workers Compensation Insurance? Do you need it?
- Never tendered before?
- Need a little help?
What is a tender?
A tender is a formal offer to perform work in return for payment. Payment may be in the form of a fixed price or via a schedule of rates. Work may include the supply of goods or services or both. To win a tender, you should understand the buyer's process and expectations. Read more here
Why are there more government than private tenders?
The Commonwealth Government (AUS) and the New Zealand Government set procurement rules which govern how their government entities buy goods and services. The Government Procurement Rules help support good market engagement, leading to better outcomes for agencies, suppliers, and taxpayers.
A key focus of the Rules is the importance of open competition – giving all businesses the chance to participate, and giving them enough time to respond to opportunities appropriately. They also help to:
- align procurement practice with international best practice
- encourage more strategic procurement approaches
- foster competition and innovation, resulting in better solutions
- promote broader environmental, social, cultural and economic outcomes.
Private companies are not obligated to follow these same rules, and hence they can choose whether to go out to public tender or not.
Can anyone respond to a tender?
Yes. If the tender is advertised as an open tender, any business that considers it can meet the requirements may respond.
Although businesses can operate without a business number, it is highly recommended to have one.
Do you have to be registered for GST to respond to a tender?
Under taxation legislation, your business must register for GST if the expected annual business turnover is $75k (AUS), $60K (NZ) or more. The government buys from micro and small businesses that are not registered for the GST because they are below the required registration threshold.
Do you have to be a company to respond to a tender?
If you can provide the buyer's scope and meet the specified eligibility criteria, then Sole traders can also respond to tenders.
Do you have to be an Australian/New Zealand company to respond to a tender?
It all depends on the tender; read through the documents to check for eligibility criteria.
Do you have to have insurance to respond to a tender?
Most tenders ask for minimum insurance requirements. The type and value of insurances required will differ depending upon the value of the procurement and the risk assessment of the organisation doing the procurement. As a business owner, it is your decision whether you want to have insurance and the type and amount of insurance you think is suitable for your business. Having appropriate insurances can help your business be more approachable and seem like a business that will reduce risks.
Potential suppliers' common insurance types are public liability insurance, product liability insurance, professional indemnity insurance, and general business insurance.
Workers Compensation Insurance? Do you need it?
Workers compensation insurance is compulsory by law in all states and territories of Australia. Most tenders require the supplier to comply with Australian laws, including your business having the necessary workers compensation insurance. An organisation may require evidence that your business has appropriate workers compensation insurance in place as part of the tender process.
Never tendered before?
There are several other documents about tendering that you can access here.
Need a little help?
Just email us at email@example.com or call our friendly Australian support team on 1800 934 117.