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'Meet the supplier' events can also provide opportunities for finding out about subcontracting opportunities. Government agencies may give you information about their main contractors or you might identify and contact a supplier who has won a major contract. There is no single way of finding out about subcontracting opportunities. Where can I find subcontracting opportunities? You may not be in a position to become involved in negotiations or management discussions about the tender, but your business will be impacted by these decisions.If you fail to deliver on your subcontract, the main contractor may take legal action.There may be a breach of contract by the main contractor that will impact on your business.You may have different business values and ethics from the main contractor, which could cause friction.As you are not the 'lead partner' or main contractor, there may be no brand recognition for your business.

You may not gain any practical experience in developing a tender.

You may have to cut your margins to deliver better returns for private companies.

The main contractor may include clauses that prohibit you from entering into similar subcontract relationships with one of their competitors for a specified period of time.

Often the main contractor will introduce clauses into the subcontracting agreement, which may ban you from carrying out any direct business with the end customer.

Depending on your position in the supply chain, there could be problems managing your cash flow, particularly if the main contractor is experiencing delays in payment.

What are the disadvantages of subcontracting?

You can negotiate intellectual property (IP) rights with the lead contractor and buyer.

Private sector contractors may be keen to partner with you to to help increase the level of potential social impact within the tender response.

even though you may lack experience or skills in tendering, you can still gain access to the contract). Many opportunities require previous tendering experience and subcontracting helps solve this 'catch 22' (i.e.

For many smaller businesses, subcontracting can be the first step in gaining tendering experience.

You do not have to invest significant resources into preparing a tender response.What are the advantages of subcontracting? You will need to carefully weigh up the pros and cons before making a decision to subcontract. Remember, subcontracting can have implications for your business. It may be that the main contractor is looking for specialist skills or experience that you are able to provide. They often tender to larger businesses and expect smaller businesses to play a part in delivering these contracts, usually as a subcontractor. Government buyers seek value for money from their procurement activities. It is also a good way to enter government supply chains. Subcontracting is a popular collaborating option that is available to most businesses.