Many years after its conception, 2020 will finally see earthworks begin on the new Sydney Airport at Badgerys Creek, 50km west of the city. Concept designs for the new $5.3 billion-dollar airport, due to open in 2026 were released this month. The new airport, which will have no curfew, will accommodate 10 million passengers initially with modular expansion plans in place to increase capacity of up to 80 million by the early 2060’s.
A new $1.8 billion-dollar motorway, the M12, will begin construction in 2022 and it is looking increasingly likely that there will also be a direct rail link to the airport. These projects will be scheduled to delivered by 2025, prior to the opening of the Airport.
The scale of the Airport project along with the associated road and rail infrastructure requirements could mean big opportunities for SMEs. The long-term investment and significant expenditure by the Federal and State Governments could lead to years of cash flow surety and growth opportunities for those committed to the projects.
Australia has a procurement market worth $30 billion dollars and participation of the SME market is actively encouraged by the Government. The Government is committed to sourcing at least 10 per cent of procurement by value from the SME market, as well as at least 35% of contracts up to $20 million. This kind of commitment shows there are real (and obtainable) opportunities for SMEs considering tendering.
Many tenders are won by SMEs who didn’t think they had a shot but tried anyway. A great example of this is a client of ours who provides project management and labour hire to the mining and heavy industry sector. Being relatively new to the market, formed just two years previously, they felt they were at a disadvantage by being a smaller player. However, their relationship with Apricity Finance ensured they had a strong cash flow position. This gave them the confidence to bid for (and deliver on) a number of large-scale projects, cementing their position in the marketplace.
5 Benefits of Tendering
- With a procurement market worth $30 billion, there is plenty of opportunity for SMEs to win highly lucrative (and lengthy) contracts
- Tendering is a great way to establish your name and stand out from the crowd
- Winning a big contract can mean cash flow certainty and a more secure future for your business
- Fulfilling tendering requirements means constant evaluation and innovation – a great skill for business transformation and growth
- Your business may gain state and national recognition from a single contract leading to future opportunities for your business
We work with a number of SMEs who are involved in large contracts. In some cases, we have been involved in the tendering process itself by providing documentation to demonstrate that funding is in place should the tender be successful.
Invoice Finance is an ideal solution for businesses looking to take on a growth opportunity or work with a much larger client. Our solution allows businesses to access funds from their own invoices as soon as they are issued. Getting funds back into the business sooner means more certainty around cash flow and the ability to get your own money working for you.
If your business is considering tendering for a large project you may like to read our article ‘Making the most of tendering opportunities’ including our Tips to Win!
Another essential resource for businesses looking to safeguard their own when working with larger organisations is our eBook ‘Landing the Big Fish’ which explores the benefits as well as the pitfalls of working with big business.
Find out more about how Apricity Finance could help your business take advantage of big opportunities contact us.
For information on NSW Government Tenders click here.