Re: Re: Government Tenders – Paradise for the big guys
From what I understand in the regulations the state procurement process will allow ‘virtual company’ tenders.
But the local authorities are under no legal obligation to accept them : they may or they may not according to their own discretion and on their own advantage.
Knowing how council budgets are at times far smaller than the cost of urgent works that must be done, it is clear that certain cute tenderers will bid close or below actual cost on such jobs in the tacit expectation of their getting later opportunities when the (grateful) council’s works budget is fuller. That’s the way of the world.
I can’t see local councils giving up this practice as it affords them a sort of financial flexibility despite their strict annual budget and borrowing limits.
I still think that your best strategy is to use the ‘virtual company’ structure to gain you entrance to local authority tenders.
Because this is something that you can do with limited co-operation from 1 or 2 other guys and without any draining politicking on your part.
And since the income gained by the VC in respect of expertise provided by your firm will eventually accrue to your firm, it also holds out the possibility for you to cut loose on your own from the VC when your revenue is high enough.