tips  |  09 Sep 2021

Managing government contracts successfully

Have you just won a government tender? Here are a few tips on what you need to do before commencing your contract.

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Congratulations! You must be thrilled that your business has won the bid! Tenders are a great way to increase revenue for any business but make sure you are fully informed and up to date on your contractual obligations before commencing the work.

We have come up with some helpful tips for you to inform yourself and ensure you maximise your commercial advantage and that you augment the contract negotiation phase.

1. Have you negotiated the contract to achieve your maximum commercial advantage?

Part of your answer lies in how well you priced your winning tender submission, however it is important you understand any contractual limitations and allowances available to you during the contract period.

2. Who is managing this contract?

Have you allocated this contract to other staff in your business to manage?

3. Have you established goals or targets with the government agency that your staff need to be informed about?

Make sure you communicate any goals or targets that you have agreed upon with your staff.

4. Have you prepared your Service Plan?

Some government agencies may want to know how you are going to deliver the service over the contract period.

5. Are there any outstanding documents you need to supply for this contract?

Often as part of the bid process, government agencies allow you to supply required certification or insurance certificates after the tender has been awarded.

6. Invoicing requirements.

If the value is under $10,000 some agencies will pay via EFTPOS facilities however most government agencies will issue the buyer with a Purchase Order. You cannot invoice a government agency unless you have been issued with a purchase order number so make sure you obtain this from the agency prior to commencing work.

7. Resourcing.

If you have factored in that you require additional staff for this contract, have you begun recruiting? If you are using sub-contractors, ensure you notify them well in advance of the start date and that they are fully briefed on their scope of work and delivery timetable.