Tendering is a high-stakes process in the construction industry. Winning the right contracts can significantly boost your firm’s growth, credibility, and cash flow. But success in competitive tendering isn’t just about offering the lowest price — it’s about showing that you’re financially sound, compliant, and capable of delivering the project efficiently.
Here’s how construction firms across Salford, Manchester, and beyond can use smart financial strategies to strengthen their bids and win more tenders.
1. Understand What Tender Evaluators Look For
While pricing is a key factor, tender evaluators consider several other areas — including quality, capability, experience, and financial stability. Many public and private clients want assurance that your company has the resources to complete the job and won’t pose a financial risk.
That’s where strong, well-presented financials come in.
2. Highlight Your Expertise and Track Record
Showcase your company’s experience, skills, and capabilities. Use case studies, testimonials, and past project success stories to back up your claims. This helps build credibility and reassures evaluators that you can deliver what you promise — especially on complex or large-scale projects.
3. Present a Clear and Realistic Budget
Underquoting may seem like a route to winning tenders, but it often leads to disputes, delays, or losses during project delivery. Savvy clients can spot unrealistic bids, and they’ll favour firms that demonstrate financial foresight.
Your tender should include:
- Accurate material and labour cost estimates
- Appropriate contingency allowances
- Profit margins that reflect real project costs
Using proper job costing methods and construction accounting software can help you present a clear, justifiable budget.
4. Highlight Your Financial Stability
Tender panels often request financial statements for the past 1–3 years. These help them assess your company’s:
- Liquidity and solvency
- Revenue consistency
- Debt levels and financial risk
Having up-to-date, accountant-prepared financial statements is crucial — not only for compliance but also to demonstrate credibility. A well-managed balance sheet gives your bid a competitive edge.
5. Demonstrate Compliance with HMRC and CIS
For public contracts or large private projects, demonstrating HMRC and Construction Industry Scheme (CIS) compliance is essential.
Key areas to address include:
- CIS registration and timely submission of monthly returns
- VAT reverse charge rules for labour and materials
- PAYE and auto-enrolment pension compliance
- Clean record with HMRC (no overdue taxes or disputes)
For more on CIS compliance, see GOV.UK: What You Must Do as a CIS Contractor
At Co-gency Chartered Accountants, we assist construction firms with full HMRC compliance, minimising red flags during tenders.
6. Showcase Labour and Subcontractor Cost Control
Labour costs are often a large part of the bid. You can improve your chances by including:
- Historical labour costs and productivity metrics
- Forecasted subcontractor hours and rates
- Breakdown of PAYE vs CIS resource costs
We help construction firms use payroll software and accounting integrations to track and present this data clearly, giving clients greater confidence in your proposal.
7. Support Your Delivery Timelines with Forecasting
Cash flow forecasting doesn’t just help you manage operations — it also strengthens your tender documents. A clear forecast shows:
- How you’ll fund each project stage
- Your ability to absorb delays or cost increases
- How you’ll manage supplier and labour payments
At Co-gency, we support builders and contractors in Salford and Manchester with robust financial forecasting tailored to the construction sector.
8. Work with Construction-Specialist Accountants
Winning tenders requires more than estimating skills. A construction-focused accountant can help you:
- Review and refine cost projections
- Provide accurate financial reports for clients
- Navigate VAT, CIS, and tax implications for the bid
- Demonstrate financial credibility and compliance
At Co-gency Chartered Accountants, we work closely with contractors, developers, and subcontractors to make their bids more competitive and credible — with proactive advice from bid prep to delivery.
Conclusion: Build Trust, Not Just Price
Your ability to win tenders depends as much on trust as it does on numbers. Demonstrating financial stability, clarity, and compliance can elevate your proposal above the competition.
📎 Download here: “Navigating CIS” guide
📎 Downlaod here: “Navigating VAT in the Construction Industry” guide
Need help preparing your financials for a tender? Get in touch with our team today and discover how Co-gency can support your next bid.
Take Control of Construction Cash Flow Today
At Co-gency Chartered Accountants, we specialise in helping builders, developers, and contractors manage their finances and stay compliant with HMRC.
From CIS returns to cash flow forecasting and VAT reverse charge management, our team understands the challenges unique to your industry. We’ve supported construction firms across Salford and Swinton for over 30 years.
📞 Book a free consultation today and discover how we can help your business stay cash flow positive—even when projects get tough.