Capability Statement Kit

What is a capability statement?

Many people ask us, “What is a capability statement?”. Here’s some useful information to enhance your understanding of what a capability statement is and how you can use one to win more business.

A Capability Statement is a concise document that outlines the capabilities, achievements and skills of your team and business. Think of it as a cross between a company profile and a resume for your business. It serves as a powerful introduction to potential clients, setting you apart from competitors and detailing your track record of accomplishments.

Understanding Capability Statements

Capability statements are vital tools mainly used by tradespeople to showcase their projects, demonstrating their expertise and reliability. These documents are crucial for subcontracting opportunities with Tier 1 and Tier 2 builders or securing government contracts. They function like a business resume or pitch deck, designed to quickly impress and engage potential clients, helping to open doors and build key relationships.

Who Uses Capability Statements?

While particularly important in construction and related trades—where builders, electricians, carpenters, and plumbers use them to highlight their qualifications and secure major contracts—capability statements are also beneficial for small businesses and independent contractors across various sectors. These statements help establish credibility, compete for government tenders, and ensure compliance with necessary standards, making them invaluable for businesses of all sizes aiming to enhance their market presence.

What Should be Included in a Capability Statement?

Compiling an impressive Capability Statement requires deliberate thought and effort. Here’s what you should consider including:

  • Business Overview: Introduce your business, highlighting your mission, vision, and values.
  • Differentiators: What sets you apart from the competition? This could be your unique selling proposition (USP) or specialised skills.
  • Past Projects and Achievements: Detail successful case studies and projects that showcase your competence.
  • Testimonials and Client List: Include endorsements from past clients to build trust and authenticity.
  • Professional Associations and Certifications: List your affiliations and any certifications that enhance your credibility.
  • Contact Details: Make it easy for potential clients to reach you by including up-to-date contact information.

How many pages should a Capability Statement be?

The length of your Capability Statement can vary depending on its use. If it’s for tender submissions, a succinct one-pager that captures all critical information is preferable for quick review. However, if the purpose is broader marketing or detailed presentations, a more comprehensive multi-page document may be necessary.

Should You Use a Template or Engage Professional Help?

If crafting a Capability Statement from scratch seems daunting, consider utilising a template as this can provide a good starting point. For those aiming for a more polished and professional document, or if you have specific needs, hiring a professional writer or designer can make a significant difference. We can ensure your Capability Statement is both  informative and aligns with your brand.

Real-World Examples of Capability Statements Driving Business Success

Capability statements are not just theoretical tools; they have practical applications that have proven pivotal for business growth and success. Let’s look at real-life examples where businesses have effectively used capability statements to secure significant contracts and forge influential partnerships.

Example 1: Construction Company Wins Major Building Contract

A mid-sized construction company specialising in commercial building projects compiled a detailed capability statement to submit for a highly competitive tender. The capability statement highlighted its past projects, including a series of successfully completed municipal buildings that demonstrated its capacity to handle complex constructions under stringent timelines. This capability statement not only illustrated the company’s technical proficiency and adherence to safety standards but also showcased glowing testimonials from previous clients. As a result, the company won a lucrative contract to construct a new shopping centre, significantly impacting its market presence and revenue.

Example 2: Electrical Contractor Partners with Large Developers

An electrical contracting business used its capability statement to establish a partnership with a large property development firm. The capability statement detailed the company’s cutting-edge electrical services and energy-efficient solutions, supported by mini case studies of past installations in high-profile commercial properties. By demonstrating a strong track record and the ability to innovate within their field, the contractor was chosen as the preferred supplier for all electrical installations in upcoming projects by the development firm.

Example 3: Plumbing Service Expands Market Through Government Contracts

A small plumbing service keen on expanding its business used a capability statement to apply for government contracts for public housing projects. The document succinctly outlined their expertise in sustainable plumbing solutions and emergency repair services, complete with certification in environmental safety management. Highlighting these niche areas within their capability statement provided them an edge, leading to the successful award of multiple government contracts, thereby expanding their client base and reinforcing their market stability.

The Impact of Capability Statements

These examples underline the effectiveness of a well-crafted capability statement in various scenarios—from large tenders and strategic partnerships to government contracts. They serve not just as informational resumes but act as persuasive tools that can articulate a business’s competencies, unique strengths, and past successes in a manner that resonates with potential clients or partners.

Leveraging Capability Statements for Business Growth

As demonstrated by the diverse examples, capability statements are invaluable assets that can open new avenues for business growth, whether it’s landing a major contract, partnering with influential firms or broadening your clientele through government projects. By effectively communicating what you can offer, a capability statement can significantly leverage your business’s position in a competitive market. For any business looking to expand and secure new opportunities, investing effort and resources into developing an impactful capability statement is well worth the effort.

We certainly hope this post has answered the question of, “What is a capability statement” for you. However, if you want to know more…

Check out our Capability Statement Kit: This is a quick and easy way to prepare a single page document for use with tenders etc. It’s great when you’re in a hurry and don’t want to miss your tender deadline!

If you’re after a professionally written multi-page document, please check out our capability statement writing services on our main website:  We’ve helped hundreds of clients to secure millions of dollars worth of contracts through collaborating on their capability statements. Let us know if we can help you too.