What Types of Business Use Tendering the Most?

Contents:

1. Public Sector
2. The NHS
3. Education
4. Local Councils
5. Government Agencies
6. Other Public Sector Businesses
7. Private Sector

Tendering is a common way for businesses to procure goods and services from outside contractors, and it is a very common practice for many businesses. It is most often used by public sector businesses, think schools, the NHS, local councils, and government agencies. It is also used by some private businesses that may need to procure goods and services outside of their own remit of production. Getting involved in tendering is an excellent way to find more opportunities for business growth and building new business relationships. Find out more about the different types of tenders here, and the best tender websites here.

Public Sector

Public sector tenders are the most common type of tendering opportunity available and are very diverse in nature. Think about all the different public services that are used in everyday life, a majority of these organisations will at one time or another need to use tendering to fulfil their business goals and deliver their essential services. UK public sector procurement spending reached £394.8 billion in 2024/25, up from £288.7 billion in 2019/20 (Cabinet Office, 5 August 2026), so there are opportunities in almost every category you can think of. A few of the key types of businesses in the public sector using tendering are explained below.

The NHS

NHS buying splits two ways. Clinical health care services in England are procured under the Health Care Services (Provider Selection Regime) Regulations 2023, in force since 1 January 2024. Everything else, from equipment and consumables to estates, IT and non-clinical staffing, runs under the Procurement Act 2023, where framework agreements continue and dynamic purchasing systems have been replaced by dynamic markets. Both routes can run for years, which is why NHS work suits SMEs looking for steady income.

Education

The education sector is arguable as essential to the running of the country, and many education trusts and local authorities rely on tendering to fill the gaps in ensuring their facilities are running smoothly. Tendering contracts in education can, similarly to the NHS, be longer-lasting and promise more steady streams of income compared to some other tendering opportunities. Many education tenders centre around services as opposed to the procurement of goods. Many of the tenders available are for training opportunities, various staff such as IT support and cleaning staff, supplies such as technology and learning equipment, and training opportunities.

Local Councils

Local Councils take care of many different services and oversee many projects in the areas that they administer. This means that the tenders on offer from local councils are very diverse in nature and can emerge all the time as new projects begin or as goods and services are needed. Councils can offer tenders for many different industries including facility management and hygiene, IT and technology, consultancy, construction, engineering, and several other areas of business. Local councils are also naturally a great option for smaller businesses searching for expansion in their immediate locality, and many local councils may favour local businesses for their tender contracts. 

Government Agencies

Government departments and agencies such as the Department for Environment, Food and Rural Affairs, HMRC, and even the UK Parliament will need several different goods and services similar to local councils.

Other Public Sector Businesses

Many other public sector organisations and businesses such as the police and government-allied charities are also using tendering as a way to improve their operations. Because of the diversity of different public sector businesses and organisations, there is also a diversity of tendering opportunities for you to get involved. Many of these tenders are open and long-lasting, providing a promise of regular income and growth for your business.

Private Sector

Several private sector businesses are also using tendering in their operations, and many of them are running large scale lucrative tendering opportunities that promise excellent returns for a successful bid. The private sector can be an exciting place to find tenders and can offer great lasting contracts for businesses of all sizes to make a great deal of money and grow. A wide range of businesses such as universities, construction firms, software developers, and marketing agencies are all using tendering. These types of tenders can be both short term and long term, offering a variety of different contracts that can be an excellent fit for your business. A few common private sector tenders include:

• Construction contracts often include the need for specialist services.
• Software development and website/interface development.
• Consultancy services on a number of different areas including business strategy, finances, human resources, and public relations.
• Creative industries such as content writing, editorial work, graphic design, videography, and design.
• Marketing contracts including leadership over marketing campaigns, advertising, and social media development.
• Academic research and auditing.
• Cleaning and facility maintenance services such as on-site engineers and mechanics.

The number of businesses both in the private and public sector using tendering is continuing to grow and is a burgeoning market that promises legitimate growth for you and your business. Find out more about how to find the best tenders using designated websites here, and about the different types of tenders here.