Supplementary Contracts – The Lowdown

Winning a new 5 year contract in January helped 2018 get off to a flying start for this client which is a smallish family owned concern.

When looking at public sector contracts small companies can often get put off by barriers such as having a turnover of a certain level or being able to scale up to meet the service demands of the buyers where they lump their service requirements into huge chunks.

Don’t get mislead by the headlines however.  There are often opportunities if you take a little time to read through the detail of how the tender requirements have been put together.

We applied this approach to this public sector contracts where the headline showed that if your turnover was below £5m your bid would not be evaluated.  Digging deeper however showed that there was a supplementary contract option, without guaranteed business levels, for which there were no turnover barriers.

You might say – so what there is no guaranteed business for the supplementary contract – and you would be correct up to a point.  How often have you read in the business press about companies who win major contracts and then have difficulties in actually living up to what their sales teams promised?  Exactly, it happens all the time.

This means that supplementary contracts take all the overspill of what the bigger companies can’t handle and that gives huge opportunities to grow without all the pressure of being the main supplier and being in the limelight.

One client after another has found that winning these supplementary contracts has hugely benefitted their companies allowing them to grow in a steady and manageable way.

If you want to break through into public sector contracts just give us a call on 01233 714063.