Top 5 Mistakes SMEs Make When Bidding for Government Contracts—And How to Avoid Them

Winning a government contract can be a game-changer for small-to-medium enterprises (SMEs), providing stable revenue and growth opportunities. However, many SMEs make simple yet costly mistakes when responding to tenders, leading to lost bids, wasted time, and unnecessary expenses.

Government tenders are highly competitive, requiring a strategic approach, attention to detail, and a clear understanding of both the client’s needs and the market landscape.

Here are the top five mistakes SMEs should avoid when bidding for government work—and practical tips to help you improve your chances of success.

1. Ignoring the Evaluation Criteria

One of the most common mistakes SMEs make is not reading and understanding the evaluation criteria before preparing their bid. Rushing into a response without knowing what aspects will be scored—and how heavily—can lead to an unbalanced proposal that doesn’t effectively showcase your strengths.

How to Avoid It:

✔ Read the evaluation criteria carefully to understand the scoring system.
✔ Allocate your time accordingly—if "Experience" is worth 40% of the evaluation, spend about 40% of your response focusing on that section.
✔ Don’t spend equal effort on all sections—prioritize based on the weight of each criterion.

2. Not Reading the Tender Document Properly

Many businesses overlook important details in the tender documents, such as project scope, deadlines, and specific requirements. This often results in misaligned proposals—where SMEs talk about what they want to offer instead of what the government is actually asking for.

How to Avoid It:

✔ Read the entire tender document carefully before starting your response.
✔ Clarify any uncertainties with the procurement team.
✔ Ensure your proposal directly addresses all key requirements, not just what you think is important.

3. Submitting a Generic or Poorly Structured Response

Copying and pasting content from previous bids without customization makes your response look lazy and irrelevant. Government evaluators want well-structured, compelling proposals that are tailored to their specific needs.

How to Avoid It:

✔ Personalize each bid to directly address the government’s requirements.
✔ Use clear, concise language and support your proposal with data, case studies, and visuals.
✔ Follow a structured format:

• Executive Summary (Key points of your proposal)

• Your Experience (Relevant past projects)

• Your Approach/Methodology (How you will deliver the work)

• Pricing Breakdown

• Supporting Documents

4. Overlooking Compliance Requirements

Many strong bids get rejected simply because they fail to include necessary documents, certifications, or compliance information. Even the best proposal won’t be considered if it’s incomplete or non-compliant.

How to Avoid It:

✔ Create a checklist of all required documents and certifications before submission.
✔ Double-check that you meet legal and industry standards for the contract.
✔ Have someone else review the bid for completeness and accuracy before submitting.

5. Choosing the Wrong Referees

Your referees can make or break your bid. Some SMEs use irrelevant references or forget to include contact details, making it difficult for evaluators to verify their claims. If the referees don’t align with the project or aren’t prepared, it weakens your credibility.

How to Avoid It:

✔ Choose referees who are directly relevant to the project.
✔ Provide a brief explanation of why their experience is relevant to this tender.
✔ Include full contact details and inform your referees that they may be contacted—prep them in advance!

Final Thoughts: Set Yourself Up for Success

Winning a government contract isn’t just about having the best offering—it’s about understanding the process and avoiding common pitfalls. By following these best practices, SMEs can improve their chances of winning tenders, securing profitable contracts, and building long-term relationships with government clients.

👉 Take the time to plan, prepare, and perfect your response—because every bid is an opportunity to grow your business.

Feel free to reach out to the team ay Bid Wizard if you need help with your next bid response.

BW!