Before you decide whether to pursue a government tender, you need to understand the true cost of responding. Whether you write it yourself, hire a consultant, or use AI-powered tools, each approach has different cost implications. Let's break down the real numbers.

Option 1: DIY (Do It Yourself)

Time Investment: 40-150+ hours depending on complexity

A typical government tender response requires:

• Reading and understanding the RFT: 4-8 hours
• Compliance checklist and planning: 4-6 hours
• Gathering internal information and case studies: 8-16 hours
• Writing responses to evaluation criteria: 20-60 hours
• Pricing and financial schedules: 8-20 hours
• Review, editing, and formatting: 8-16 hours
• Final compliance check and submission: 4-8 hours

Calculated Cost: If your time is worth $100-150/hour (a reasonable rate for a business owner or senior manager), a DIY tender costs $4,000-$22,500 in labour alone.

Hidden costs:
• Opportunity cost—what else could you be doing?
• Learning curve if you're new to tendering
• Higher risk of non-compliance or rejection
• Stress and deadline pressure

Option 2: Professional Tender Consultants

Cost Range: $2,000-$30,000+ per tender

Tender writing consultants typically charge:

• Small/simple tenders: $2,000-$5,000
• Medium complexity: $5,000-$15,000
• Large/complex tenders: $15,000-$30,000+
• Ongoing retainer arrangements: $3,000-$10,000/month

Some consultants charge hourly ($150-$350/hour) while others offer fixed-price packages.

Pros: Professional quality, government experience, higher win rates, saves your time.

Cons: Expensive, may not understand your business deeply, availability issues during busy periods, you still need to provide significant input.

Option 3: AI-Powered Tender Tools

Cost Range: $300-$1,500/month subscription

Modern AI tools like Respondo offer a middle ground:

• Automatic requirement extraction from tender documents
• AI-generated response drafts based on your company information
• Compliance checking against tender rules
• Professional formatting and document generation
• Unlimited tenders within your subscription

Time savings: Reduce tender writing time by 60-80%, from 40+ hours to 8-15 hours of review and refinement.

Pros: Cost-effective for multiple tenders, fast turnaround, learns your business over time, always available.

Cons: Requires human review and refinement, learning curve for new users, quality depends on the AI system.

Cost Comparison Table

For a business submitting 10 tenders per year:

DIY: 600+ hours of your time = $60,000-$90,000 opportunity cost
Consultant: $50,000-$150,000 per year
AI Tool: $4,000-$18,000/year + 100-150 hours = $14,000-$40,000 total

Which Option Is Right for You?

Choose DIY if: You're just starting out, have more time than money, want to deeply understand the process, or are bidding on very small contracts.

Choose a Consultant if: You're bidding on a few high-value, must-win opportunities, need hand-holding through complex procurement, or have the budget and want the best possible submission.

Choose AI Tools if: You're bidding on multiple tenders regularly, want to scale your tendering capability, need fast turnaround, or want to reduce costs while maintaining quality.

The ROI Calculation

Ultimately, the question isn't 'what does it cost?' but 'what's the return?'

If a $5,000 investment in tender writing wins you a $500,000 contract, that's a 100x return. Even winning one in ten tenders can make the investment worthwhile.

Focus on:
• Win rate improvement
• Time to respond (being able to submit more tenders)
• Quality and compliance (avoiding rejection on technicalities)
• Scalability (growing your government revenue stream)

Ready to see how AI can transform your tender writing? Try Respondo's 7-day free trial and experience the difference.