Your capability statement is the gateway to prequalification and shortlisting for big projects. With $1.14 trillion in demand over the next five years, Australia’s construction sector has a lot of opportunities for contractors who have the capacity and capability.
Procurement officers aren’t reading your capability statement for entertainment. They’re assessing risk and looking for proof that you can deliver on time, safely, and within budget (all without any financial or legal uncertainty).
There are four core elements that tender evaluators are looking for:
- Financial stability through net tangible assets and audited statements
- Technical competence demonstrated by project history
- Compliance credentials, including ISO certifications and licensing
- Social value
A winning capability statement exhibits all of these and should be skimmable yet comprehensive. This guide will show you the core sections that should consistently be included, while offering tips and information to ensure you write something that will win you new work.
What are the essential inclusions in a capability statement?
Capability statement formats can range from one page to 20 pages and beyond in tender submissions. These three sections, however, should always be featured:
A high-impact summary
Always begin by addressing your target buyer, their specific problems, and how you uniquely solve them. Try to be specific here and avoid generic “fluff” statements like “we go above and beyond.” Builders are looking for real examples of what you can do, so instead, write something like: “We provide specialised earthmoving for remote energy transmission sites, ensuring project milestones are met even in challenging topographical conditions. Our fleet of GPS-equipped excavators and experienced operators certified in environmental management makes this possible.”
Core competencies
List your core competencies via bullet points, and if possible, categorise them to match industry classifications from the industry-relevant National Prequalification System or state-based Construction Supplier Register. Procurement teams often search documents for specific terms, so you can make their job easier by using keywords.
Your unique selling position
A good capability statement differentiates you meaningfully. Do you own a specialised high-capacity plant or equipment? Do you have a proven track record in a niche area? Do you specialise in modern methods of construction? These are the selling points that will help you stand out from the competition and should be highlighted early in the document.
How do I explain trade-specific details in my capability statement?
Generic capability statements should be avoided, as the builder is looking to understand your skills based on your specific trade. Each sector has mandatory licensing and qualification requirements that need to be clearly explained, so a trade-specific focus should lead the content of your statement. Here are some examples per trade:
Electrical contracting
In Victoria, as an example, Energy Safe Victoria requires all electrical contractors to display their Registered Electrical Contractor (REC) number on all marketing materials or tender bids. This means that your capability statement has to show your REC number in a prominent position, along with details of your A-Grade Electrician technical supervisor, including their Certificate III in Electrotechnology (UEE30811). You will also need to demonstrate safety management systems, such as Safety Station software, for issuing Certificates of Electrical Safety.
For your project examples, you’ll want to highlight complexity wherever possible and relevant. This can include statements such as:
“Electrical services completed for a 17-storey residential development, including works for main switchboard installation, distribution boards on each level, emergency lighting, and energy-efficient LEDs throughout. Received the project safety award for innovative cable management that eliminated trip hazards and reduced installation time by 15%.”
Plumbing services
In most cases, plumbing tenders for work is split into Main and Specialised classes. Your capability statement needs to specify the classes you hold and the scopes you can execute.
Main classes require Certificate III in Plumbing and include:
- Drainage.
- Gasfitting.
- Mechanical services.
- Roofing.
- Sanitary work.
Specialised classes require parent class registration plus specialised units and include:
- Backflow prevention.
- Thermostatic mixing valves.
- Type A/B gasfitting.
For licensed status, you’ll need business skills units covering legal responsibilities (BSBESB402), estimating (CPCPCM4011), and procurement (CPCPCM4012).
An example of a strong plumbing case study:
“Mechanical services installation for a new medical centre, including hot and cold water, natural gas supply to commercial kitchen equipment, roof plumbing and stormwater drainage for a 2,000 square meter facility. Completed three weeks ahead of schedule despite supply chain delays by maintaining strong relationships with local suppliers.”
Civil construction
A civil contractor’s capability statement functions as a live register of plant and equipment when submitting for tenders. Builders and project managers are looking to assess site reliability based on your fleet’s age, capacity, and maintenance status.
Be sure to detail excavators by tonnage and include specialised tools like trenchers, bulldozers, backhoes, and dump trucks. Demonstrate your maintenance process through digital systems if possible (for example, QR scanning for field access to maintenance logs).
Civil case studies should emphasise your ability to problem-solve like this:
“Gangway enabling works for passenger terminal, including bulk earthworks, drainage infrastructure, and concrete foundations. With strict operational constraints we coordinated 24-hour deliveries during low-traffic periods. Planning included dust suppression measures (exceeding environmental requirements) with works finalised two months ahead of schedule, enabling terminal upgrades to proceed early.”
How do I demonstrate my capacity in my capability statement?
There are a few standard inclusions that should be considered as part of a capability statement that go beyond the specific scopes of work we’ve already detailed in this article.
While not always relevant to your company of the project, these should at least be considered as part of your preparation and included if required:
State-specific mandates
Some states have a Social Procurement Framework that applies to all construction projects. In these cases, work over $20 million triggers the Building Equality Policy to address things like gender equality targets (3% women in trade roles and 35% in management positions). The
Major Projects Skills Guarantee is a similar consideration as it ensures that 10% of the total labour hours are performed by apprentices or trainees. Where possible, you should outline local jobs first strategies to demonstrate how local workers will benefit from your operations.
Compliance credentials
Every capability statement should serve as proof of compliance. Standard requirements include:
- ISO certifications (ISO 9001 for Quality, ISO 45001 for Occupational Health and Safety.
- ISO 14001 for Environment.
- Insurance coverage (typically $20M public liability and $5M professional indemnity for government works).
- Federal Safety Commissioner accreditation for principal contractor roles on federally funded projects.
- State-specific registrations (e.g. Queensland’s PQC or Victoria’s CSR).
Always position these credentials prominently and include certificate numbers and expiry dates. We recommend having all key credentials directly in the body of your statement as opposed to attachments.
Innovation and future-readiness
Now more than ever, builders are looking for capability statements that showcase forward-thinking approaches. If you can do this, you’ll gain a significant advantage over your competitors.
Some examples of how to achieve this are, where relevant, highlighting modern methods of construction (e.g. pre-fabricated modules, investment in Building Information Modelling, use of low-emission materials including recycled content or low-carbon concrete). If your company offers in-house training programs that upskill workers in new technologies, be sure to mention this.
Global supply chain vulnerabilities, particularly for steel and energy-intensive materials, are at the forefront of builders ‘ minds. If you can demonstrate sovereign capability (local steel fabrication or supply chains, for example), you are offering a much sought-after layer of security to buyers that will help your bid shine.
Presentation standards
It sounds cliché, but first impressions truly do matter. Make sure your capability statement looks professional and is easy to read. Do this with skimmable layouts and clear headings, bullet points, and high-quality project imagery. Steer clear of jargon and make sure your information is understandable to everyone, from technical project managers to administrative procurement officers. Include clear calls to action with primary and secondary contacts who are reachable (and knowledgeable about the tender). Always place your ABN and ACN clearly in headers or footers on every page.
Where can your capability statement win you work?
E1 is the industry standard for subcontractors looking to quote on tenders. The Australian infrastructure pipeline is an opportunity for work, and your capability statement is a powerful tool for winning it.
E1 helps you build a pipeline and position your business as a secure choice, but you’ll need to articulate your value through a capability statement that’s professional, compliant, and authentically reflective of your strengths. If you can do this successfully, your potential for growth should have no limits.
Alexander
Green
General Manager - Subcontractors
