Price is often the part of a bid that small firms worry about most and research least. Public buyers publish far more about what they pay than most private clients ever would. Use it.
The tender documents say how much price counts against quality, for example 40% price and 60% quality, and the formula used. A common one gives the lowest price full marks and scores the others in proportion. So with a 40% price weighting, a bid 10% dearer than the cheapest loses about 4 of the 40 marks. A strong quality answer can easily make that up. Under the Procurement Act 2023, buyers award to the "most advantageous tender", which is not always the cheapest.
Work out the split before you price. If quality carries 60% or more, a sensible, sustainable price with a strong method statement usually beats a cheap one.
When a public contract is awarded, the buyer publishes an award notice, usually with the value and the winner's name. Search Find a Tender and Contracts Finder for the buyer's name and the type of work. The previous contract is the best guide you will get (more ways to find it: who holds the contract now). Then compare with what other buyers paid for similar work. Our what public buyers pay page summarises nearly 20,000 recent awards by trade, with the typical range for each.
A notice that says "£450,000" usually means the whole contract, often including optional extensions. A 3-year contract with two 1-year extensions at £450,000 is about £90,000 a year, not £150,000. Check whether the figure includes VAT (notices often say), and whether it covers several lots or sites. Divide before you compare it with your own yearly price.
Buyers can question a price that looks abnormally low and reject it if your explanation doesn't hold up. A price far below the last contract with the same staff and hours tells the evaluator something is missing. Winning a contract that loses money every month is worse than losing the tender.
Social value is often scored separately, at 5% to 15%: see how to answer the social value question.
Use the buyer's own pricing sheet, fill every cell, keep their units and don't add conditions or assumptions they didn't ask for. If something is unclear (a missing volume, a site you can't see), ask a clarification question before the deadline. The answer goes to every bidder, which is fine: a clearer tender usually helps a careful small firm.
Before pricing, check the documents for how you'll be paid: per visit, per month or a fixed sum.
Before you price, check the bid is worth writing: the bid calculator.
Want a price check on a tender? Send me the link. Within one working day I'll reply with what the buyer is asking for, what they and others paid for similar work and my honest view on whether it's worth bidding. It's free. Need a hand with the bid itself?
Email [email protected] · New to tenders? How to find them
This guide is general information, not legal or financial advice. Always read the full tender documents.