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At Height, we have a wealth of experience in both sides of procurement - professional bid writing and tender evaluations. Having chaired Tender Evaluation Teams (TETs), we understand the challenges suppliers face when trying to renew long-term maintenance or ongoing services contracts.
One of the biggest issues for suppliers? The Incumbent’s Curse - where existing suppliers lose to competitors, despite delivering quality service for years.
Here are seven common mistakes that put incumbents at a disadvantage when re-tendering:
1. Sticking to old pricing and delivery methodologies
Many incumbents assume their current pricing and methods are still competitive. Meanwhile, competitors find cost-saving innovations that make their bids more attractive.
Some also add inflation to rates without understanding the market. Simply applying an inflation adjustment to last year’s pricing isn’t enough. Competitors conduct thorough market research, often submitting more competitive rates based on real-time industry trends.
2. Relying too much on client relationships
A good track record doesn’t guarantee a contract renewal. Government agencies (and increasingly, many private organisations) follow strict procurement rules that prioritise fairness, value for money and competition over familiarity.
3. Assuming the same people will evaluate your bid and remember past performance
TETs often include finance, legal, health and safety, as well as independent experts - many of whom may have no prior knowledge of your work. Never assume they remember or know specific details about your performance.
Incumbents often leave out key details, assuming evaluators already know their history. But tender evaluations are objective and based solely on what’s in your bid - if you don’t document it, it probably won’t count.
4. Treating the tender as a renewal, not a new contract
Contracts evolve over time. If you only focus on past performance instead of demonstrating improvements and fresh ideas, you risk losing to a competitor offering a more forward-thinking innovative solution.
5. Failing to show innovation
Organisations want to achieve more for less. If your bid lacks efficiency gains, innovation, or continuous improvement, it may lose out to a competitor who offers something new.
6. Underestimating the importance of good bid writing
Some suppliers have never had to bid competitively before. If previous contracts were awarded without a formal tender, they may struggle with structured, competitive bidding and submit a weak proposal that doesn’t clearly articulate their value proposition. This makes it harder for the TET to understand and appreciate all aspects of their service offering.
7. Pricing based on real-world experience instead of the tender scope
Incumbents often price based on actual site conditions rather than the tender’s specifications – they often know too much about what it really takes to deliver a contract. While this may seem logical, it prevents a fair ‘apples-to-apples’ comparison and can make your pricing look less competitive.
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How to Beat the Incumbent’s Curse
- Start fresh. Treat every tender as a new opportunity, not a renewal.
- Explain everything. Never assume the evaluation team knows your history.
- Stay informed. Keep up with industry trends, pricing, and best practices.
- Ask questions. If the scope isn’t accurate, raise it during the Q&A phase - not in your pricing.
- Invest in expertise. Make sure your internal bid team is skilled and capable, or consider using a professional bid writer.
By avoiding these common pitfalls and taking a strategic approach, incumbents can break the curse and secure long-term contracts.
If you are interested in upskilling your team, check out our WinWrite course - designed to provide organisations with the internal capability and skills to write a winning bid.
Alternatively, reach out to our team at HeightPM if you would like professional bid writing or procurement assistance.