Private Tenders in Australia: The Complete Guide for Contractors and Service Providers

TL;DR

Private tenders are procurement opportunities issued by companies like developers, miners, and facility managers rather than government agencies. They represent roughly $120 billion in annual Australian procurement, with 65-70% never publicly advertised. This guide is for contractors, trades, and service providers wanting to access invite-only opportunities worth $50K to $20M+. Here’s the kicker: businesses that crack private tender networks report win rates of 15-25%, compared to just 5-10% on crowded public portals.

Key Takeaways

✓ Prioritise Relationships: Private procurement is 70% access; build relationships before tenders to secure invitations.

✓ Register Immediately: Join major private portals (e.g., BHP Ariba, Rio Tinto, Lendlease); expect results in 12-18 months.

✓ Commercial Capability: Focus on outcomes, relationships, and commercial value, not compliance.

✓ Price for Negotiation: Avoid the lowest initial price; private buyers anticipate discussion.

✓ Systematic Tracking: Document relationships, invitations, submissions, and results to inform future strategy.

✓ Join Associations: Networking offers portal-exclusive opportunities; relationship investments pay off.

✓ Respond Swiftly: Private tender windows are brief. Professional responsiveness signals valued service.

What Are Private Tenders?

Private tenders are formal procurement processes initiated by private companies, unlike public tenders which are run by government bodies. They are governed by internal company policies, not public procurement laws, and are not legally required to be publicly advertised.

A private tender involves a company inviting specific suppliers to submit competitive proposals for goods, services, or works—the key difference from public procurement is the invitation.

Issued by corporations, developers, and large enterprises, the issuing organisation dictates all rules, evaluation criteria, and timelines, with no mandatory government publication. Contract values in Australia often span from $50K to over $50M+.

This flexibility enables companies to selectively invite bidders, negotiate pricing, and award contracts based on relationships and track record, rather than solely on the lowest bid. One contractor leveraged this to secure a $3.2M annual revenue stream from just four private clients.

Common Industries Using Private Tenders

Different industries approach private procurement differently. Here’s how it breaks down across Australia’s major sectors:

Industry	Typical Opportunities	Average Contract Value (AUD)	Timeline
Construction/Property Development	Head contractors, subcontractors, fit-outs, defect rectification	$100K-$5M	2-6 weeks
Mining & Resources	Equipment supply, support services, maintenance, sand hutdown work	$200K-$20M	4-12 weeks
Facilities Management	Cleaning, security, maintenance, and landscaping contracts	$50K-$500K	1-4 weeks
Corporate/Commercial	IT services, professional services, office supplies, fleet	$75K-$2M	2-8 weeks
Retail & Hospitality	Fit-outs, maintenance, equipment supply, cleaning	$50K-$750K	1-4 weeks

Mining and resources dominate the high-value end. Companies like BHP, Rio Tinto, and Fortescue run extensive private tender programs for everything from catering to complex engineering services. A Karratha-based maintenance contractor told me their average private tender is worth $340K, compared to $85K for government work.

The property development sector moves fastest. Lendlease, Mirvac, and Stockland regularly turn around tender processes in two to three weeks. For trades and subcontractors, this means opportunities come and go quickly. You need systems to respond fast.

Private Tenders vs Public Tenders: Key Differences for Australian Businesses

Understanding how private procurement differs from government tendering isn’t just academic. It changes how you find opportunities, how you price them, and how you present your business.

Regulatory Environment and Compliance

Public tenders operate within strict legal frameworks. Commonwealth Procurement Rules govern federal opportunities. Each state has its own procurement policies. Queensland uses the Queensland Procurement Policy 2024. Victoria follows the Victorian Government Purchasing Board guidelines. New South Wales operates under the NSW Procurement Policy Framework.

These rules mandate transparency, value for money assessments, and fair treatment of suppliers. They also create bureaucracy.

Private tenders? Completely different story.

Private sector procurement is governed only by company-specific policies. There’s no legal advertising requirement. No mandatory evaluation criteria publication. No formal debriefing obligations.

A Sydney plumbing contractor put it this way: “Government tenders have 40 pages of compliance before you even get to the work. Private sector? Sometimes it’s a two-page brief and a phone call.”

That said, major corporations increasingly adopt structured procurement processes. BHP’s Ariba system, for instance, has extensive supplier qualification requirements. Don’t assume private means casual.

Accessibility and Competition

Here’s where the rubber meets the road.

Public tenders:

• Listed on AusTender (federal), eTendering (NSW), QTenders (Queensland), Tenders VIC, and state equivalents
• Open to all eligible suppliers meeting published criteria
• High competition with often 10-50+ bidders per opportunity
• Accessible to new market entrants

Private tenders:

• Invitation-only or limited to pre-qualified suppliers
• Distributed through industry networks and existing relationships
• Lower competition with typically 3-8 invited bidders
• Access depends heavily on relationship-building and reputation

The competition difference is stark. A Melbourne electrical contractor shared their numbers: they’ve bid on 47 public tenders over three years, winning 4 (8.5% success rate). In the same period, they’ve responded to 23 private tenders, winning 6 (26% success rate).

Fewer competitors means better odds. But getting invited is the challenge.

Documentation Requirements Comparison

Public tender documentation requirements can feel endless. A typical state government construction tender might require:

• Standard Selection Questionnaire (SQ) or prequalification evidence
• Detailed financial declarations and statements
• Current insurance certificates (public liability, professional indemnity, workers comp)
• WHS management plans and safety statistics
• Environmental management plans
• Quality management systems documentation
• Indigenous procurement policies or RAPs
• Local content commitments
• Key personnel CVs
• Detailed methodology
• Pricing schedules across multiple categories

Total: minimum 15-25 separate documents. Some tenders request 40+.

Private tenders typically streamline this:

• Capability statement (2-8 pages)
• Relevant project references (3-5 typically)
• Pricing schedule or quote
• Current insurance certificates
• Basic WHS documentation

Total: typically 5-10 documents.

The reduced documentation burden means faster response times. But here’s the catch: your capability statement carries more weight. It’s often the primary document a private procurement team uses to assess your suitability. Generic templates won’t cut it.

Timeline and Decision Process

Public tender timelines:

1. Publication and market sounding: Day 1
2. Tender open period: 2-4 weeks minimum (often 4-6 weeks)
3. Evaluation and clarifications: 2-6 weeks
4. Probity reviews and approvals: 1-2 weeks
5. Standstill period: 2-10 days (mandatory for some thresholds)
6. Contract award and execution: 1-2 weeks

Total: 30-90 days from publication to award is standard. Complex infrastructure? 6-12 months isn’t unusual.

Private tender timelines:

1. RFT issued to selected suppliers: Day 1
2. Submission deadline: 1-3 weeks
3. Evaluation and shortlisting: 3-7 days
4. Negotiations or clarifications: 3-7 days
5. Award decision: 1-3 days

Total: 14-45 days from RFT to award. Some facility management tenders close within 7 days.

A Brisbane shopfitter told me they once received, submitted, and won a $180K private tender within 11 days. Try that with a government process.

Negotiation and Pricing Flexibility

This is where private tendering gets interesting.

Public procurement:

• Fixed pricing in the submitted schedule
• No post-submission negotiations on price
• Lowest compliant bidder often wins (value for money notwithstanding)
• Rates typically locked for contract duration
• Variations require formal approval processes

Private procurement:

• Pricing negotiations are common and expected
• Value-add discussions permitted after submission
• Relationship, quality, and capability can outweigh price
• Contract variations negotiated directly
• Ongoing rate reviews based on performance

Truth is, many contractors underestimate this. They submit their best price upfront, leaving nothing on the table. Private procurement managers expect negotiation. A 5-10% initial premium on your pricing, with room to discuss, often works better than rock-bottom rates.

I’ve seen contractors leave hundreds of thousands on the table because they treated private tenders like government submissions. Don’t make that mistake.

Where to Find Private Tenders in Australia

Finding private sector procurement opportunities requires different strategies than monitoring government portals. Here are the most effective approaches for Australian businesses.

Method 1: Commercial Tender Aggregation Services

Several Australian platforms aggregate private tender opportunities:

Australian Tenders (australiantenders.com.au) lists both public and private opportunities. Their private sector coverage spans construction, mining, facilities, and professional services. Subscription costs range from $395-$895 annually depending on industry coverage.

TenderSearch offers similar services with strong coverage in construction and trades. They claim access to opportunities from 35,000+ private sector buyers.

Industry-specific platforms exist for sectors like mining (MATES in Mining), construction (various builder-specific portals), and facilities management.

The limitation? These platforms only capture opportunities that companies choose to advertise. Remember, 65-70% of private tenders never reach public distribution. Aggregators are useful but insufficient on their own.

Method 2: Direct Company Vendor Registration

Major corporations maintain supplier databases and procurement portals:

Mining and Resources:

• BHP’s Ariba supplier portal
• Rio Tinto’s Supplier Registration System
• Fortescue Metals Group supplier qualification
• Woodside’s vendor management system

Property and Construction:

• Lendlease supplier registration
• Mirvac’s contractor database
• Stockland supplier engagement
• CBUS Property approved contractor lists

Facilities Management:

• CBRE vendor registration
• JLL supplier qualification
• Cushman & Wakefield approved lists

Getting onto these databases doesn’t guarantee opportunities. But it puts you on the radar. When a project manager needs a specialist contractor quickly, they search their internal systems first.

A Melbourne glazing contractor registered with eight major developers over 18 months. In year one, they received two tender invitations. By year three, they were averaging 15 opportunities annually, winning $1.8M in contracts.

The effort compounds over time.

Method 3: Industry Networks and Associations

Relationships drive private procurement. Industry associations create those relationships.

Construction:

• Master Builders associations (state-based)
• Housing Industry Association (HIA)
• Australian Institute of Building (AIB)
• Civil Contractors Federation (CCF)

Mining:

• Mining Equipment, Technology and Services (METS)
• Austmine
• State-based resources councils

Trades:

• National Electrical and Communications Association (NECA)
• Master Plumbers associations
• Air Conditioning and Mechanical Contractors’ Association (AMCA)

Association events put you in rooms with decision-makers. I’ve heard countless stories of contracts starting as conversations at industry dinners. A Townsville crane hire operator landed a $2.4M shutdown contract at a Queensland Mining Industry dinner. No portal involved.

Method 4: Supply Chain Mapping

Private tenders often flow through existing supply chains. Head contractors award subcontracts. Facility managers engage specialist trades. Developers work through preferred builders.

Map the supply chains in your industry:

1. Identify the major head contractors or principal contractors
2. Research their current and upcoming projects
3. Determine their typical subcontracting patterns
4. Position your business within their supplier networks

For a Perth formwork contractor, this meant building relationships with three major civil contractors rather than chasing individual project tenders. When those contractors won work, opportunities followed automatically.

Method 5: Targeted Business Development

Sometimes you need to create opportunities rather than find them.

Identify companies that should be buying your services. Research their current suppliers and upcoming projects. Develop tailored approaches demonstrating specific value.

A Sydney IT managed services provider used this approach with mid-tier construction companies. They researched which builders were expanding interstate, identified their likely IT pain points, and approached with solutions. Result: $340K in contracts from companies that weren’t actively tendering.

How Private Tendering Works: The Australian Process

Effective navigation of the private tender process requires understanding its seven stages.

Stage 1: Need Identification & Market Assessment

Companies first identify needs (new project, contract renewal, new service). Procurement teams then informally assess the market, contacting known suppliers and gathering intelligence. Relationship-building before the tender is crucial.

Stage 2: Tender Document Preparation

Requirements documentation varies greatly, from formal RFTs to brief phone calls. Key documents may include Scope of Work, Timeline, Pricing Schedule, Submission Requirements, Evaluation Criteria (often undisclosed), and Draft Contract.

Stage 3: Supplier Selection & Invitation

Procurement decides who is invited (typically 3-8 suppliers). Selection factors include existing relationships, database registration, recommendations, reputation, coverage, and capability. If you aren’t invited, the opportunity doesn’t exist.

Stage 4: RFT Distribution & Questions

Response windows are shorter than public tenders (5 days to 4 weeks). Clarification questions are often permitted via less formal means, including direct phone calls.

Stage 5: Submission & Evaluation

Submissions are assessed against criteria, often by a smaller panel or single decision-maker. Private evaluation can heavily weight factors like: prior relationship/performance, cultural fit, flexibility, and personal preferences. As a manager noted: “Technical capability gets you in the room. Relationship and trust win the work.”

Stage 6: Negotiation & Clarification

Negotiation is common in private tendering. Expect price negotiation, scope clarification, value engineering, extra reference checks, or site visits. Treat these as opportunities to demonstrate relationship skills.

Stage 7: Award & Contracting

Award decisions and notifications are often faster and less formal (e.g., a phone call). Unsuccessful bidder debriefing is not mandatory, but most procurement professionals will share informal feedback if asked directly.

Are Private Tenders Legally Binding?

Once a private tender is awarded and a contract executed, it’s as legally binding as any commercial agreement. The tender process itself creates limited legal obligations, primarily around confidentiality and intellectual property in submitted proposals.

Unlike government procurement, unsuccessful bidders have limited legal recourse. There’s no equivalent to the Government Procurement Review Board. Your recourse is essentially contract law if you believe a commitment was breached.

Who Can Bid on Private Tenders?

Anyone the issuing company chooses to invite. There are no mandatory open market requirements.

However, large corporations often maintain supplier diversity commitments. BHP, for instance, has indigenous procurement targets. Many property developers prefer local suppliers for community benefit.

Small businesses can absolutely compete. In fact, many private buyers preference smaller, specialist suppliers over large generalists. The key is demonstrating relevant capability and relationship building.

Advantages of Private Tenders for Australian Contractors

Why focus on private sector procurement? Several compelling reasons.

Faster Decision Timelines

Government procurement moves slowly. Budget cycles, probity reviews, and approval hierarchies create unavoidable delays. Private sector? Decisions happen when businesses need them.

A Perth electrical contractor won a $420K private tender with 23 days from RFT issue to contract signature. Comparable government work? The last state tender they won took 97 days.

Faster decisions mean better cash flow planning, easier resource allocation, and reduced bid costs.

Relationship-Based Competition

In private procurement, your reputation matters. Demonstrated performance on previous contracts influences future opportunities. Companies remember who delivered and who didn’t.

For quality-focused contractors, this creates competitive advantage. You’re not constantly fighting price-only battles against unknown competitors.

Negotiation Opportunities

Public procurement locks in pricing. Private procurement allows discussion.

This isn’t just about squeezing margins. It’s about solving problems together. If your submission reveals scope gaps or timeline concerns, private buyers often work through solutions. Government processes rarely permit this.

Reduced Compliance Burden

Less paperwork means lower bid costs. A Sydney construction estimator told me their typical government tender response costs $8,000-$12,000 in internal time. Private tenders average $2,500-$4,000.

The savings compound across dozens of opportunities annually.

Potential for Ongoing Work

Private relationships often generate repeat business. Perform well on one contract, and you’re positioned for the next. Some contractors build entire businesses on two or three key private clients.

Government work, with its mandatory re-tendering cycles and supplier rotation policies, rarely creates the same continuity.

Challenges and Considerations in Private Tendering

Private procurement presents several challenges, though understanding them aids navigation.

Access Barriers: Gaining entry is the primary hurdle; without relationships or presence, opportunities are invisible. Breaking in requires time, as one contractor spent 18 months building relationships before securing a major private tender.

Less Transparency: Unlike government procurement with published criteria, private procurement is often opaque. You may lose a tender without knowing why, as prices and evaluation methods are confidential. This lack of transparency can be frustrating or, conversely, appreciated for reduced bureaucracy.

Payment Risk Considerations: Government payments are generally reliable. Private sector payment behaviour varies; major corporations typically pay reliably but slowly (45-60 days), while smaller companies pose a higher risk. Due diligence (ASIC checks, trade references, credit insurance) is essential.

Relationship Dependency: While strong relationships generate opportunities, breakdowns or the loss of a key contact can suddenly close doors. Smart contractors build relationships with multiple stakeholders.

Less Structured Processes: Government processes offer predictability. Private processes vary greatly, from professional operations to vague briefs and unrealistic timeframes. Flexibility is crucial, as rigid government-tender processes may not translate.

Responding to Private Tenders: Best Practices

Winning private tenders requires approaches tailored to private sector expectations.

Lead with Relationships, Not Just Documents

Your submission matters. But it’s often confirmation of what the buyer already believes about you. The relationship established before the tender shapes evaluation more than most contractors realise.

Invest in relationship building before opportunities appear. When tenders arrive, you’re confirming capability rather than establishing it.

Develop a Private-Sector Capability Statement

Your government-focused capability statement likely won’t work. Private buyers have different priorities.

Private sector capability statements should:

• Lead with relevant private sector experience
• Emphasise commercial outcomes (cost savings, efficiency, reduced risk)
• Showcase relationship approach and service philosophy
• Include commercial references they might know
• Demonstrate understanding of their specific industry challenges

A capability statement designed for Council tenders won’t resonate with a property developer. Customisation matters.

Price for Value, Not Just Competition

Government procurement often rewards lowest price. Private buyers typically consider broader value.

Your pricing should reflect:

• Quality and reliability premiums
• Relationship and service value
• Negotiation room (don’t submit your absolute floor)
• Value-add opportunities to discuss

Contractors who consistently underprice train private buyers to expect cheap. That’s not a position you want.

Respond Quickly and Professionally

Private tender windows are short. Responding a day late isn’t just risky—it signals disorganisation.

Build systems for rapid response:

• Pre-prepared capability statement sections for customisation
• Template pricing schedules for common scope types
• Readily available compliance documentation
• Clear internal approval processes

The best contractors can turn around a professional private tender response in 48-72 hours when required.

Follow Up Appropriately

After submission, an appropriate follow-up demonstrates interest without being pushy. A brief email or call checking receipt and offering to clarify questions is usually welcome.

If unsuccessful, seek feedback. Private buyers often share insights government procurement won’t. Use it to improve.

Build Internal Tracking Systems

Track your private tender pipeline:

• Opportunities identified
• Relationships developing
• Invitations received
• Submissions made
• Win/loss results
• Contract values

This data reveals patterns. Which relationships generate opportunities? Which industries deliver best win rates? Where should you focus effort?

Conclusion

Private sector tendering plays a major role in Australia’s procurement landscape, offering faster timelines, stronger commercial flexibility, and opportunities driven by relationships rather than rigid compliance. For contractors and service providers who understand how private buyers operate, this environment can create reliable pipelines of work and long-term partnerships. The challenge is gaining visibility and earning invitations, and that requires consistent relationship building, a focused capability statement, and systems that allow you to respond quickly when opportunities appear.

Success in private procurement is rarely about chasing every tender. It is about positioning your business so that the right companies know who you are, what you deliver, and why you can be trusted. When those foundations are in place, private tenders become more predictable, more strategic, and more profitable over time.

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Frequently Asked Questions About Private Tenders

Do private tenders have to be advertised publicly?

Unlike government mandates, private companies are not legally required to advertise tenders. They can invite any suppliers. Industry estimates suggest 65-70% of private sector tenders are never publicly advertised, relying instead on existing supplier relationships, internal databases, and targeted invitations.

How much are private tenders worth in Australia?

Australia’s private sector spends over $120 billion on procurement annually. Tender values vary widely: Facilities management contracts are typically $50K-$500K; construction subcontracts range from $100K-$5M; and major mining equipment supply can surpass $20M. Most trades and specialist contractors see private opportunities averaging $75K-$350K.

Can small businesses compete for private tenders?

Private buyers often prefer smaller, specialist suppliers for their responsiveness, direct engagement, and competitive pricing. Small businesses’ main hurdle is access, not capability. Success requires building relationships and a strong capability statement.

What’s the typical success rate for private tenders?

Established suppliers see 15-25% win rates on private tenders, reflecting smaller bidder pools (3-8) and relationship influence. This contrasts with 5-10% success on competitive government portals (15-50+ bidders). New market entrants should anticipate lower initial success while building reputation.

Are private sector payment terms better than government?

Payment reliability and terms vary by client type: Major corporations are reliable but have long terms (45-60 days). Government agencies usually pay within 30 days, subject to Security of Payment laws. Smaller private companies pose variable payment risk, requiring due diligence before resource commitment.

How long does the private tender process take?

Private tender timelines are typically faster than government. Simple services contracts may close in 1-2 weeks; standard trades subcontracts, 2-4 weeks from RFT to submission. With 1-3 weeks for evaluation/award, the total process is often 2-6 weeks, much shorter than the minimum 8-12 weeks for most government procurement.

Do I need a capability statement for private tenders?

Yes, capability statements are almost always essential in the private sector, even with lighter documentation. They are key to buyer assessment. Private sector statements should prioritise commercial outcomes, relationship approach, and relevant experience over government compliance.