Tendering Trends in 2026/27

The tender market is shifting under our feet. Some of it is good. Some of it is difficult. All of it changes how you need to bid.

I have spent decades on the other side of the table, reading, marking and comparing bids. I still watch this market closely every week. Here is where I see it heading through 2026 and into 2027, and what it means for you.

There are fewer skilled procurement people, and it is slowing everything down

The people who write and run tenders are stretched thinner than the budgets. Experienced procurement officers are retiring or moving on, and there are not enough trained people coming through to replace them.

You feel this as a supplier before you ever see it named. Tenders that were promised for June appear in September. Closing dates get extended at the last minute. Briefings are thin, and questions take a fortnight to answer.

Plan for delay. Do not build your cash flow or your resourcing around a tender landing on time, because more of them will not. The suppliers who cope best in 2026/27 will keep a steady pipeline of opportunities in play rather than betting the year on one big release.

Evaluation is getting patchier, so leave nothing to interpretation

This one is uncomfortable to say, and I say it as someone who used to mark these bids.

When evaluation panels are under-resourced and under time pressure, the quality of their decisions suffers. Panels lean on assessors who have never marked a tender before. Scoring gets rushed. I am seeing more results that are difficult to reconcile with the submissions behind them. More mistakes

You cannot control who marks your bid. You can control how easy you make their job. Answer the question that was actually asked, in the order it was asked. Put your evidence where a tired assessor will find it in ten seconds, not buried on page nine. Make your compliance obvious.

A clear, well-signposted bid protects you when the marking is not as careful as it should be. That has always mattered. It matters more now.

Compliance is tightening, and the rules are less forgiving

Government buyers are pulling the compliance rails in closer. Mandatory requirements are stricter, returnable schedules are longer, and the tolerance for a late or incomplete submission is zero.

A small slip that a buyer once waved through will now knock you out before your pricing is even opened. Read the conditions of tender first, every time, and build a compliance checklist before you write a single word of your response.

Insurance requirements are climbing, so check your certificates now

The insurance bar has moved, and it will keep moving. Public liability cover at 20 million dollars is now the standard ask on most tenders, where 10 or 5 million once did the job.

Cyber insurance and motor vehicle third party insurance are following the same path from optional to expected. Buyers want to know that a data breach or a vehicle incident on their contract will not become their problem.

Do not wait until a tender lands to discover your cover falls short. Talk to your broker now, and ensure you are adequately covered for your industry and risk. Keep your certificates of currency current and easy to find, because more tenders ask you to attach them up front as a pass-or-fail requirement.

Three shifts in particular are worth understanding now, because they are moving from nice-to-have into pass-or-fail territory.

Modern slavery is becoming a genuine risk, not a paragraph

In July 2026 the Federal Government announced it will introduce criminal penalties and fines for large companies that fail to prevent modern slavery in their operations and supply chains. The duty is aimed at businesses with revenue above 100 million dollars, and it moves modern slavery from a reporting exercise into a legal obligation with teeth.

Even if your business sits well below that threshold, this reaches you. Large buyers and head contractors are pushing these obligations down their supply chains, which means you. Expect more tenders to ask how you manage modern slavery risk, and expect them to want evidence rather than a policy you downloaded and never used.

Get your house in order now. A short, honest modern slavery statement that describes what you actually do will serve you far better than a glossy one that does not survive a follow-up question.

Gender equality is tied to your ability to win government work

From 1 April 2026, employers with 500 or more staff in Australia must set and commit to gender equality targets under the Workplace Gender Equality Agency rules. They choose three targets and must show progress across a three-year cycle.

The part that matters for tendering is simple. Employers who do not comply can be shut out of tendering for government contracts. The Workplace Gender Equality Procurement Principles already require a current letter of compliance from bidders above the relevant threshold, and that expectation is only firming up.

If you are a larger employer, check your compliance status before your next government bid, not after you have lost one over it.

Indigenous participation targets are rising, and the rules are firmer

The Commonwealth Indigenous Procurement Policy target rose to 3 per cent of contracts for 2025/26, and it will climb by 0.25 per cent each year to reach 4 per cent by 2029/30. From 1 July 2026, an Indigenous business must be at least 51 per cent First Nations owned and controlled to qualify, and the Government is tightening its checks on misrepresentation.

This is an opportunity as much as an obligation. Genuine partnerships with Indigenous businesses, and real Indigenous participation in how you deliver, will open doors on more and more tenders. Build those relationships as long-term partnerships, not as a box you tick in the fortnight before a bid closes. Assessors can tell the difference, and so can the businesses you approach.

The trend that worries me most: bidding below cost to win

Here is the one that keeps me up at night.

More suppliers are pricing below what the work actually costs them, simply to win it. In a tight economy, with fewer tenders and more bidders chasing each one, the temptation to buy the job is strong.

It is a trap. A contract won at an unsustainable price does not become profitable once you are delivering it. You cut corners, you burn out your team, you cannot invest, and you limp to the end of the term with nothing to show for it. Worse, you train your buyer to expect that price next time, and you drag the whole market down with you. You are participating in a race to the bottom.

Win on value, not on the lowest number. Show the buyer why your price is fair and what they get for it. A good evaluator is looking for value for money, and value is not the same as cheap. If a tender genuinely cannot be delivered at a sustainable price, sometimes the strongest commercial decision is to walk away. That is a decision, not a failure.

What all of this adds up to

The 2026/27 market rewards preparation over reaction. The buyers are slower, the marking is patchier, the compliance is tighter, and the social obligations are becoming real gates. None of that is a reason to sit out. It is a reason to bid smarter.

Get your compliance foundations in place before the tender you want appears. Answer the question in front of you clearly enough that a rushed panel cannot miss your strengths. And protect your prices, because a business that wins everything at a loss does not last long enough to enjoy it.

If you would like a hand getting bid-ready for the year ahead, that is exactly what we do. Let us talk before your next tender lands.