What is a capability statement, and what goes in one?

What a capability statement is

A capability statement is a short document that shows a buyer what your business does, the work you’ve done and why they can trust you with the job. It’s also called a statement of capability.

It’s different from a tender response. A tender response answers one buyer’s questions about one job. Your capability statement is the general introduction. Send it with a tender response, to a head contractor, or to anyone who needs to know what you can do.

Business Queensland says you may need one if you regularly respond to tenders or pitch for business. Its free guide to writing one covers the basics.

Who asks for a capability statement

Anyone choosing between businesses they don’t know yet. In Queensland, that’s usually one of these.

• Government and council tenders. Queensland Government tenders are listed on QTenders, and construction and maintenance jobs are on the state’s eTender site. Councils run their own, often through platforms like VendorPanel. Business Queensland shows where to look.
• Head contractors. Say you’re a sparky in Chermside and a builder wants you on their next fit-out. They’ll ask for your licence, insurances and safety details before you set foot on site.
• Prequalification. Some buyers check you before you can tender at all. Contractors working directly for the Queensland Government on building projects over $1 million must be prequalified through the state’s PQC system. The application asks for your licence, insurance, recent projects and referees.
• Supplier panels. A panel is a pre-approved list a buyer picks from without running a full tender each time. Many Queensland councils buy through panels run by Local Buy, and you join by responding to a tender.

Some of these ask for a capability statement by name. Others ask the same questions on their own form. Either way, if yours is already written, most of the answers are sorted.

What to put in a capability statement

Here’s a quick rundown. In a construction capability statement, the licences, insurances and safety systems matter most. Stick to facts a buyer can check.

• Business overview. Who you are, where you’re based, how long you’ve traded, how big the team is and where you work. Add your ABN, and your ACN if you’re a company.
• Services. What you do, in plain words, and who it’s for.
• Past projects. Three to five jobs close to the work you want. Say what you did, where, when and for whom, and add a photo. Ask before you name a client, and leave out private homeowners’ details.
• Key people. Owner, supervisors and safety lead, with their roles, years in the trade, tickets and qualifications.
• Licences. Your QBCC licence number and class, or your trade licence. QBCC says licensees must show their licence number in all advertising, so put it where it can’t be missed.
• Insurances. Public liability, workers’ compensation through WorkCover Queensland if you have staff, and contract works or professional indemnity if they apply. Show the type of cover and the expiry date, and keep current certificates ready to send.
• Safety, quality and environment. Your workplace health and safety system, safe work method statements, inductions and tickets such as the white card. List any ISO certification you hold: 9001 for quality, 14001 for environment, 45001 for safety. If you don’t have one, say briefly how you manage it on site.
• Plant and equipment. Only if it helps win the work, like excavators, trucks or elevating work platforms. A short list is enough.
• Contact details. Name, phone, email, website and street address.
• Extras. Referees or testimonials (with permission), industry memberships, awards, and Indigenous business or social enterprise status if it applies.

Be specific. For example, “Reliable electrical work, on time and on budget” tells a buyer nothing. “Switchboard upgrades, fit-outs and test and tag for builders and councils in Brisbane and Moreton Bay” tells them plenty.

How long should a capability statement be?

For most trades, one or two pages is enough. Business Queensland says a capability statement can run from a single page to a long, multi-page document, depending on how you use it.

Keep a short version for builders and quick enquiries, and a longer one for formal tenders. Check what the tender asks for first. Some set a page limit or give you their own form, so you may only be able to use your written content.

Capability statement design and format

A simple format to start with: page one has your overview, services, licence numbers and contact details. Page two has your projects with photos, key people, insurances and safety systems.

• Save it as a PDF. It’s easy to send and keeps your layout the same on every screen. Use real text, not a picture of text, so it can be searched and read by screen readers.
• Make it easy to read. Use a clear font at a decent size, short paragraphs, headings and bullet points. Assume it will be opened on a phone.
• Match your brand. Use your logo, colours and fonts, the same as your website and quotes.
• Use real photos. Your crew, your plant and your finished jobs, with a short caption. Stock photos of hard hats could be anyone’s.
• Keep the file small enough to email or upload, and keep the editable version too.

You can build one in Word or Canva, start from a free template, or have a designer lay it out. Word is fine for a first version. If you tender regularly, we’d get it designed once and then just update the words each time.

Tailor it for each tender and keep it current

Keep one master copy with everything in it, then trim a version for each buyer. Business Queensland suggests the same approach. Before you send it:

• Read the tender documents and use the buyer’s words for the work.
• Lead with the three or four projects closest to the job. A builder tendering for council work should open with council and community projects.
• Put the licences, insurances or safety systems they care about where they can’t be missed.
• Check the buyer’s name, the date and the contact details. A name left over from the last tender looks careless.

Then keep it current. Update it after every big job and whenever a licence, insurance or key person changes. Check expiry dates before every tender, and put a version date in the footer.

Common mistakes

• All talk and no proof. Claims with no projects, photos or referees behind them.
• Old details. Expired insurance, a licence class you no longer hold, or a supervisor who left last year.
• One version for everyone. A council tender and a note to a builder need different projects up front.
• Stock photos and tiny text. If it doesn’t look like you, or can’t be read on a phone, it won’t help.
• Rates and prices. They go out of date fast, and they belong in your quote.
• No second pair of eyes. Ask someone else to proofread it before it goes out.

Questions people ask

Is a statement of capability the same as a capability statement?

Yes. It’s the same document with a different name. Use whichever name the tender or the buyer uses.

Do I need one for a small trade business?

If you want government, council or head contractor work, you’ll probably be asked for one. If your work is all word of mouth you can wait, but don’t leave it until a tender is due.

Can I use a free capability statement template or sample?

Yes, for the layout. Then fill it with your own jobs, licences and photos, because a copy of someone else’s wording is easy to spot.

How often should I update it?

After every big job, and whenever a licence, insurance or key person changes. Give it another check before each tender.

We design capability statements for trades and construction businesses around South East Queensland, and we can photograph your jobs too, so yours is full of real work. Have a look at how we do capability statements, or give us a call on 0432 631 964.