Securing a public sector contract can be a big win for businesses. With the UK government and other public authorities spending £407 billion in 2023/24 on goods, services and works, public sector contracting is one of the most consistent and transparent routes for businesses looking to grow.
In 2025, public sector tendering isn’t just about compliance and value for money; it’s about social impact, sustainability and innovation. The procurement world is changing fast from new regulations and digital procurement platforms to evolving expectations around ESG and supply chain resilience.
This guide explains what public sector contracting involves, how public sector contracts work and what businesses need to know to win more public tenders.
What Is Public Sector Contracting?
Public sector contracting refers to the process by which government bodies, local authorities, NHS trusts, schools and other public organisations procure goods, services or works from private businesses. These contracts are awarded through a competitive tendering process designed to ensure transparency, value for money and compliance with legal and ethical standards.
In 2025, public contracting remains governed by principles of fairness, non-discrimination and transparency, underpinned by UK procurement law and guided by reforms introduced in the Procurement Act 2023.
Related Reading: The Suppliers’ Guide To The Procurement Act 2023
Why Suppliers Should Consider Public Contracts
Public sector contracts present significant opportunities for suppliers of all sizes. Some of the benefits include:
- Long-term stability: Public contracts often span multiple years, offering predictable revenue.
- Prompt payment: Government bodies are legally required to pay suppliers promptly, often within 30 days.
- Growth potential: Securing a public sector client can serve as a springboard to winning additional contracts.
- Transparency: Unlike many private sector tenders, public tenders are publicly advertised with clear evaluation criteria.
Who Can Bid For Public Sector Contracts?
Almost any legal business entity can bid, including:
- Sole traders
- Limited companies
- Partnerships
- Joint ventures
- Consortia.
In fact, the UK government is actively encouraging SME participation. The Public Procurement Review Service and new procurement reforms aim to level the playing field and remove barriers.
Types Of Public Sector Contracts
Public sector contracts typically fall into three categories:
- Goods: Supplying products such as IT equipment, office supplies, or medical devices.
- Services: Providing maintenance, cleaning, professional consultancy, or social care.
- Works: Carrying out construction, infrastructure upgrades, or refurbishment projects.
Frameworks such as those administered by Crown Commercial Service (CCS) or NHS SBS remain popular in construction and facilities management.
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How Does Public Sector Tendering Work?
While processes can vary, public sector tendering generally follows this pattern:
1. Contract Notice
Public sector organisations publish tender opportunities via platforms like:
These notices include essential information such as contract value, duration, scope of work and deadlines.
2. Pre-Qualification Questionnaire (PQQ)
Some contracts, especially larger ones, begin with a PQQ phase to screen suppliers based on financial health, experience and compliance. This stage may ask for:
- Company insurance levels
- Health and safety policies
- Equality and diversity policies
- References from past contracts.
Pre-qualification schemes like those offered by Veriforce CHAS can streamline this process, allowing suppliers to demonstrate key credentials once and then use them across multiple tenders. With CHAS Elite certification, contractors can meet the requirements of the Common Assessment Standard, giving them wider recognition across both public and private sector projects.
Related Reading: What Is A Pre-Qualification Questionnaire (PQQ) In Construction?
3. Invitation To Tender (ITT)
Qualified suppliers receive an ITT, which contains detailed specifications and submission instructions. At this stage, you’ll be required to:
- Provide a technical proposal explaining how you will deliver the contract
- Submit pricing details
- Respond to quality and social value questions
- Supply evidence of past performance.
4. Evaluation And Award
Tenders are evaluated using predefined criteria, typically broken down into:
- Price (e.g. 40-60%)
- Quality (e.g. 40-50%)
- Social Value (e.g. 10-20%).
The supplier with the best-combined score is awarded the contract. Debriefs are offered to unsuccessful bidders, allowing you to learn and improve.
The Role Of Social Value In Public Contracting
Since the introduction of the UK government’s Social Value Model, public bodies must now evaluate bids based on their contribution to social, economic and environmental goals. In 2025, this is more important than ever.
To succeed in public sector tendering, suppliers must show how they:
- Support local employment or apprenticeships
- Reduce environmental impact
- Promote equality, diversity and inclusion
- Tackle modern slavery and unethical labour practices
- Engage with communities or charities.
Related Reading: How To Create A Social Value Policy
Compliance And Certification: What Buyers Expect
Public sector buyers require suppliers to meet strict standards. Some of the most commonly requested certifications and evidence include:
- Health and safety certification
- ISO certifications (9001, 14001, 45001)
- Modern slavery statement
- Environmental policy
- Anti-bribery and corruption policy
- GDPR and data protection compliance
- Public liability and professional indemnity insurance.
Certification through schemes like Veriforce CHAS can demonstrate readiness and help you stand out.
Trends In Public Sector Contracting In 2025
Several key trends are shaping public sector procurement this year:
1. Increased Emphasis On Social Sustainability
Expect more emphasis on fair wages, local supply chains and workforce wellbeing. Social value is no longer a nice-to-have; it’s a key evaluation metric.
Related Reading: The Veriforce CHAS Guide To Social Value In Compliance And Procurement
2. Digital Procurement
Public sector buyers are investing in digital platforms and AI tools to automate and streamline the procurement process. Expect tighter deadlines and more structured submission formats.
3. SME-Friendly Reforms
Following the Procurement Act 2023, authorities must now:
- Break contracts into smaller lots
- Simplify documentation
- Provide feedback to all bidders.
This presents a massive opportunity for agile SMEs to compete more effectively.
Common Mistakes To Avoid In Public Tendering
Even experienced suppliers can fall into common traps when bidding for public sector contracts. Understanding what to avoid is just as important as knowing what to include. Below are five of the most frequent mistakes businesses make.
1. Copy-Pasting Past Submissions
Reusing answers from previous bids can be tempting, but this often leads to generic, unfocused responses. Public sector buyers want to see that you’ve read and understood their specific requirements. Each tender should be treated as a unique opportunity and tailored accordingly.
2. Missing Deadlines
Deadlines in public sector contracting are strictly enforced. If you miss the submission window, even by a few minutes, your bid will be disqualified. Make sure you leave plenty of time for internal reviews and uploading documentation to avoid last-minute issues.
3. Failing To Answer The Question
One of the most common reasons tenders fail is that the supplier doesn’t actually answer what’s being asked. Always read each question carefully, refer back to the evaluation criteria and structure your responses clearly. Avoid going off-topic or including irrelevant details.
4. Overlooking Compliance
Many bids are rejected because suppliers haven’t met basic compliance requirements. Always double-check that you have the necessary insurance levels, up-to-date certifications, financial information and policies in place before starting your submission.
5. Undervaluing Social Value
Social value is now a key scoring criterion across many public tenders. You’re unlikely to score well if you treat it as an afterthought. Instead, build social value into your delivery plan, detailing how your business will create local jobs, support communities or reduce environmental impact.
Related Reading: What Is Social Sustainability? Key Facts And Examples
Public sector contracting in 2025 is more accessible and competitive than ever before. With billions of pounds’ worth of contracts available across the UK, now is the time to position your business as a trusted supplier.
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The Common Assessment Standard: A CHAS Guide for Easy Completion
Read our guide to find out more about:
– Benefits of getting certified against the Common Assessment Standard
– The modules and different areas of risk management covered
– How to become certified against the Common Assessment Standard with CHAS Elite
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Updated 7th November 2025
