How to Get Government Contracts

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Government contracts can feel like a closed world from the outside. I regularly speak to directors and business owners who assume public sector work is only for large companies with dedicated bid teams, legal departments, and years of prior experience. In reality, government contracts are awarded to businesses of all sizes every day, including small limited companies, sole traders, and start ups.

The challenge is not eligibility, it is understanding the process, the language, and the expectations. Government procurement follows rules, structures, and behaviours that are very different from private sector sales. Once you understand how those systems work, the whole landscape becomes far more accessible.

In this guide I will explain how government contracts work in the UK, where they are advertised, what buyers are actually looking for, how to position your business properly, and how to avoid the most common mistakes. I will also share practical insights from working with business owners who have successfully moved into public sector work.

What counts as a government contract

A government contract is any agreement where a public sector body pays a business to provide goods, services, or works.

This can include contracts with:

• Central government departments

• Local councils

• NHS bodies

• Schools and academies

• Police and fire authorities

• Housing associations and public bodies

Contracts range widely in size and scope. Some are worth thousands, others run into millions, but many are specifically designed to be accessible to small and medium sized enterprises.

It is important to understand that public sector buyers are not trying to be difficult. They are required by law to follow transparent procurement rules and to demonstrate value for money, fairness, and accountability.

Why government contracts appeal to small businesses

Government contracts offer several advantages that are often underestimated.

Key benefits include:

• Reliable payment terms

• Long term contracts and stability

• Clear scopes of work

• Reduced credit risk compared to private clients

• Strong references for future bids

For many businesses, winning even one public sector contract can transform credibility and cash flow.

However, these benefits come with higher compliance expectations and more structured processes.

Understanding public procurement rules in the UK

Public procurement in the UK is governed by legislation and policy designed to ensure fairness and transparency.

While the detailed rules evolve, the core principles remain consistent:

• Open competition

• Equal treatment of suppliers

• Transparency in decision making

• Proportionality in requirements

Buyers must be able to justify why a supplier was chosen and how public money is being spent.

This is why the process can feel formal, documentation heavy, and slow compared to private sector sales.

Where government contracts are advertised

One of the most common misconceptions is that government contracts are hidden or awarded behind closed doors. In practice, most opportunities must be advertised publicly.

Contracts Finder

For England, the main portal is Contracts Finder.

This website lists:

• Central government opportunities over a certain value

• Many local authority and public sector tenders

• Award notices showing who won contracts

It is free to use and should be one of the first places any business starts.

Other portals and systems

Depending on the sector and region, opportunities may also appear on:

• Local authority procurement portals

• NHS procurement systems

• Education and academy trust portals

Many public bodies use third party tender platforms, but they are still required to advertise opportunities openly.

The role of frameworks and approved supplier lists

Not all government contracts are advertised as one off tenders. Many are awarded through frameworks.

A framework is a pre approved list of suppliers who meet certain criteria and can be called off for work without a full tender each time.

Frameworks are commonly used by:

• Central government departments

• NHS organisations

• Councils and public bodies

Being on a framework does not guarantee work, but it makes accessing opportunities significantly easier.

For small businesses, frameworks can feel intimidating, but many are explicitly designed to encourage SME participation.

What government buyers actually look for

Understanding what public sector buyers value is critical.

Contrary to popular belief, the cheapest bid does not always win. Buyers typically assess bids against a combination of price and quality.

Key factors include:

• Ability to deliver the service reliably

• Relevant experience and evidence

• Clear understanding of the requirement

• Risk management and governance

• Social value and wider impact

Buyers want confidence. They need to show that your business can deliver without causing operational or reputational issues.

Preparing your business before bidding

Before bidding for government contracts, your business needs to be ready. This preparation phase is often where bids are won or lost.

Legal and structural readiness

Most buyers will expect:

• A properly registered business

• Clear ownership and control

• Up to date Companies House filings

• Transparent financial records

Late accounts, poor compliance, or unclear structures can raise red flags.

Financial stability

You do not need to be a large company, but buyers will usually assess:

• Recent accounts

• Turnover relative to contract size

• Financial controls and processes

If your business is young or small, buyers may ask how you will manage cash flow and delivery risk.

Insurance and compliance requirements

Public sector contracts typically require specific insurance cover.

Common requirements include:

• Public liability insurance

• Employers’ liability insurance where staff are involved

• Professional indemnity insurance for advisory services

You should not take out insurance blindly, but you should understand what cover your sector usually requires.

Other compliance areas often include:

• Health and safety policies

• Data protection and GDPR compliance

• Equality and diversity policies

• Modern slavery statements for larger contracts

These do not need to be complex, but they must be credible and tailored to your business.

Writing a strong government bid

Government bids are not about marketing language or sales flair. They are about evidence, clarity, and compliance.

Read the question carefully

This sounds obvious, but it is where many bids fail.

Each question is usually scored independently. If you do not answer the question directly, you will lose marks regardless of how good your business is.

Use clear structure

Strong bids tend to:

• Follow the question order exactly

• Use headings that mirror the question

• Avoid unnecessary waffle

• Focus on evidence rather than promises

Buyers are scoring against set criteria, not reading for enjoyment.

Demonstrating experience without big contracts

A common fear among small businesses is lack of public sector experience.

In practice, buyers often accept:

• Relevant private sector contracts

• Similar scope projects

• Pilot work or smaller engagements

• Demonstrable expertise of key individuals

The key is relevance, not size. You must clearly explain how your experience translates to the requirement.

Pricing government contracts

Pricing is one of the most sensitive areas.

Government buyers expect:

• Transparent pricing

• Clear assumptions

• Value for money

They are not necessarily looking for the lowest price, but they must justify spend.

Common mistakes include:

• Underpricing to win and then struggling to deliver

• Overcomplicating pricing models

• Failing to explain cost drivers

A realistic price that supports delivery is far better than a cheap bid that looks risky.

Social value and government contracts

Social value has become increasingly important in public procurement.

This means demonstrating how your contract delivery will benefit the wider community.

Examples include:

• Local employment or apprenticeships

• Environmental sustainability

• Supporting local supply chains

• Skills development

You do not need grand gestures. Practical, measurable commitments that align with your business often score better.

Common reasons government bids fail

Over the years, I see the same issues repeatedly.

Non compliant submissions

Missing documents, incorrect formats, or late submissions often lead to automatic rejection.

Generic answers

Cut and paste responses that are not tailored to the specific contract score poorly.

Overpromising

Buyers are experienced at spotting unrealistic claims. Credibility matters more than ambition.

Ignoring evaluation criteria

Every tender sets out how it will be scored. Ignoring this is one of the most costly mistakes.

Working as a subcontractor or consortium partner

Winning government contracts does not always mean bidding as the main contractor.

Many small businesses enter the public sector by:

• Subcontracting to larger suppliers

• Joining consortia

• Partnering with complementary businesses

This can be a lower risk way to build experience and credibility.

Managing delivery once you win

Winning the contract is only the start.

Public sector clients expect:

• Clear reporting

• Contract management discipline

• Adherence to agreed processes

• Transparent communication

Strong delivery builds reputation and leads to repeat work and extensions.

Poor delivery damages future opportunities quickly.

How long it takes to win government contracts

Public procurement moves more slowly than private sector sales.

It is normal for:

• Tender processes to take several months

• Evaluation periods to be lengthy

• Contract start dates to move

Businesses entering this space need patience and cash flow planning.

How I advise clients approaching government contracts

When I work with business owners looking at public sector work, I focus on three things.

First, readiness. Is the business structurally and financially ready to bid.

Second, positioning. Which contracts genuinely fit the business rather than chasing everything.

Third, process. Building repeatable systems for bidding rather than one off efforts.

Government contracts reward consistency and professionalism over time.

Final thoughts

Getting government contracts is not about being the biggest or loudest business in the room. It is about understanding the system, preparing properly, and communicating clearly.

In my experience, small and medium sized businesses often make excellent public sector suppliers once they stop viewing procurement as a mystery and start treating it as a structured process. The barriers are rarely as high as they appear, but the expectations are different.

If you are serious about winning government work, invest time in understanding procurement rules, get your compliance house in order, and approach bidding with discipline rather than desperation. Done properly, government contracts can provide stability, credibility, and long term growth for your business.

You may also find our guidance on how to buy a business and what are business improvement techniques helpful when exploring related limited company questions. For a broader overview of running and managing a company, you can visit our limited company hub.