Why I sometimes tell my clients NOT to proceed with a tender

It might sound strange coming from someone who makes a living helping businesses win tenders… but sometimes, the best advice I can give a client is simply “don’t go for this one.”

Not let’s give it a crack, or we’ll see how we go. Just very clear advice that this isn’t the right opportunity for them. And no, it’s not because I don’t want the work. It’s actually the opposite.

Because I care about my clients’ time, money, and energy, and I’ve seen too many great businesses burn all three chasing the wrong opportunities.

On the surface, a tender can look perfect.

• The scope aligns with what you do.

• The contract value is attractive.

• It’s a government client (which always feels like a win).

But when you dig deeper, things can start to unravel quickly. Maybe the requirements are heavily weighted toward prior experience you don’t yet have. Maybe the incumbent has been in place for 10 years and is deeply embedded. Maybe the pricing expectations are unrealistic. Or maybe the contract terms carry more risk than reward.

These are the things you don’t always see at first glance - but they matter. A lot.

There’s a common mindset in business along the lines of “we may as well submit - you never know.”

And I get it. I really do. But here’s the reality - tenders aren’t quick, easy or low-effort. A proper submission takes:

• Days of your time.

• Input from key people across your business.

• Careful thought, strategy, and positioning.

• And usually, a financial investment if you’re engaging support.

So when you decide to “just have a go,” what you’re really doing is diverting resources away from your business – and sometimes with a very low probability of success. And that’s the part most people underestimate.

Red flags I look for

When I review a tender, I’m not just looking at whether you can do the work. I’m trying to establish if you are genuinely competitive here. Some of the biggest red flags include:

You don’t meet key mandatory criteria. This is the big one. If you can’t tick the non-negotiables, it doesn’t matter how good the rest of your submission is.

You’re trying to “stretch” your experience. There’s a BIG difference between positioning your experience well and trying to make something fit when it doesn’t. Evaluators will see through that very quickly.

The weighting doesn’t favour you. If 40–50% of the score is based on something you’re weak in (like large-scale government experience or niche capability), you’re already on the back foot.

Unrealistic pricing pressure. If the market is saturated or the client is clearly cost-driven, you may find yourself competing in a race to the bottom. That’s rarely where you want to be.

The incumbent advantage is strong (and deeply entrenched). It’s not impossible to overcome, but it needs to be acknowledged. Sometimes you’re not just competing, you’re trying to displace a well-performing, well-liked provider. That’s a very different strategy.

It’s not a “no” - it’s a “not this one”

When I recommend not proceeding, it’s never about shutting the door. It’s about being strategic.

Because the businesses that win consistently aren’t the ones chasing everything, They’re the ones choosing carefully where they invest their effort. Instead of spending time on a low-probability tender, we can:

• Strengthen your capability statements.

• Build better case studies.

• Prepare for upcoming opportunities.

• Position you more strongly for the right tenders.

In other words, we focus on winning - not just participating.

Tendering isn’t about one submission. It’s about building credibility, capability, and a track record over time. And sometimes that means saying no today - so you can say yes to a much better opportunity in three months. Or six. Or twelve.

And when that right opportunity comes along - one where you’re aligned, competitive, and well-positioned - everything changes.

• Your submission is stronger.

• Your confidence is higher.

• And your chances of winning are significantly better.

I know it can be disappointing to hear that a tender isn’t worth pursuing, especially when you’ve already started thinking about the opportunity. But my role isn’t just to write submissions. It’s to give you honest, commercial advice that helps you grow your business. Even when that advice is “let this one go.”

Because in tendering (just like in business) what you don’t do is often just as important as what you do.

If you’d like to chat about the strategic fit for a tender that’s just been released, I’m always happy to chat. Just give me a call on 0400 514 579 or email pauline@tenderwise.com.au.