How to Build a Profitable Business Selling to the Public Sector Without Needing Legal Advice

by | Nov 7, 2024 | Blog

A couple of weeks ago, Amit Kapoor (a sub-consultant solicitor with me) ran a LinkedIn poll about public procurement. He asked his audience if they would ever consider taking legal advice for a public procurement matter. You might wonder who his audience is. Amit has around 2,000 followers on Linkedin, many of whom connected with him when he worked with suppliers bidding for public contracts, as well as during his time on the buy-side with large central government departments. And these are just his first-level connections. LinkedIn also shares polls more widely, so they often reach beyond your immediate network. It is fair to say, that he was expecting a decent response.

Here are the poll results:

To Amit’s surprise, no votes were received. This led us to think that no one wants to find themselves in a situation where legal advice becomes necessary. So, Amit decided to write about what it takes to build a profitable business supplying goods and services to the public sector—and how to avoid ever needing legal advice.

If you’re a supplier to the public sector, here are some golden tips to help you achieve this “blissful” state while still running a profitable business:

  1. Avoid Caveats and Commit Fully to the Offer

When bidding, avoid adding caveats or trying to reduce your risk. The best way to win public contracts is to say “yes” to all questions a Buyer would like you to say ‘yes’ to, and “no” to everything else. Public sector awards are often less profitable than private ones, but they’re usually substantial in volume because of the scale and nature of the government’s work. Public bodies also frequently consolidate their demand to get further volume discounts, making public sector contracts highly competitive. Don’t give buyers a reason to disqualify you early. Not meeting every requirement is a sure-fire way of getting disqualified. This doesn’t mean misrepresenting your capabilities; it means ensuring your business is set up or re-positioned to say “yes” to all qualifying questions.

  1. Actively Participate in Pre-Market Engagement and Clarifications

Public procurement processes are highly regulated, with limited opportunities for one-on-one interaction between buyers and suppliers. Buyers must ensure all suppliers receive the same information. If you’re not an incumbent supplier, building a relationship with the buyer during the process can be tough. The pre-market engagement and clarification stages are the few opportunities to show thought leadership and demonstrate your expertise, to a Buyer outside of the regimented request-response element of tenders. While participation in these stages isn’t formally scored, engaging thoughtfully can build buyer confidence in your proposal when they see it in the final tender.

  1. Pay Attention to Compound Questions

Scoring in public procurement is designed to be objective, and buyers want a fair, defensible outcome that won’t lead to challenges. Compound questions—those that combine multiple parts in one—can trip up suppliers. Ensure you address every part of a question in your response. Avoid assuming that something “goes without saying”; evaluators need explicit evidence to award points. A thorough moderation process can catch scoring issues, but that’s not guaranteed, and the evaluators might not have your level of expertise. Make every connection clear in your answers.

  1. Be Flexible with Terms and Conditions

Public sector contracts often turn into multi-year relationships, but buyers still prefer the flexibility to terminate contracts on short notice. Any attempts to lock in terms may lead to rejection. A pragmatic approach is to accept the buyer’s preferred terms, though this may mean taking on financial risk. Since incidents like Carillion’s collapse, buyers are more aware of the need for a financially stable supply chain. When proposing alternative terms, highlight the financial risks involved for you as a supplier; you might be surprised by how often this works.

By following these tips, you’re more likely to win public sector bids without needing legal intervention. But if you do lose a bid you were hoping to win, contact us right away. Public procurement decisions must be challenged within 30 days. Some suppliers wait for feedback sessions with the Buyer before considering legal advice, but this can be too late.

Having run a business that sold c£20m of services to the public sector, and having assisted departments with the purchase of c£200m+ of services, Amit and Steven can be your virtual partners joining hands with your bid team, in reviewing terms and conditions and helping you negotiate the ideal contract you’d like to be engaged on. 

So get in touch for any public procurement matters.

Steven Mather

Steven Mather

Solicitor

Hello, I’m Steven Mather, Solicitor – thanks for reading this blog I hope you found it useful.

As you’ll see from my site here, I’m an expert business law solicitor (sometimes called a corporate solicitor, commercial solicitor, company solicitor, but they’re all about advising businesses).

If you’re looking for Remarkablaw advice – fixed fees, great service, and a smile, then get in touch with me today.

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