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Guide

Capability Statement: What to Include, Free Template and Example

Learn how to write a capability statement for government tenders: what to include, how to tailor it to each buyer, common mistakes, a free copyable template, and a worked example.

Rob Dickson

Rob Dickson

Ops Lead, AutoRFP.ai··13 min read

A capability statement is often the first document a government buyer sees from your business. It might arrive attached to an email introducing your services, sit inside a supplier panel application, or travel with a tender as the company information section. In each case, the reader has the same question: can this supplier do the work we need, and is there evidence they have done it before?

This guide explains what a capability statement is, what to put in it, how to tailor it, and the mistakes that weaken it. It includes a plain-text template you can copy and a short worked example for a fictional company. The guidance is written for Australian suppliers preparing for government tenders, and it applies just as well in New Zealand and the UK, with local business identifiers swapped in.

What is a capability statement?

A capability statement is a concise document that summarises who your business is, what it delivers, the experience and credentials behind that work, and how to contact you. Think of it as a business resume aimed at buyers, especially public sector procurement teams.

It differs from a brochure in one important way. A brochure tries to make a business look appealing. A capability statement tries to make a buyer confident that you can deliver a specific kind of work. Every section should help that buyer answer a procurement question: is this supplier capable, experienced, compliant, and easy to engage?

If you are new to public procurement, the guide to what a tender is and how tendering works explains the wider process your capability statement feeds into.

When do buyers ask for a capability statement?

Buyers and their advisers ask for capability statements at several points:

  • Before a tender is released. Procurement teams researching a market, or running supplier briefings, often collect statements from businesses that might bid. A good statement here can put you on the invitation list for a limited or select tender.
  • Supplier panels and pre-qualification. Panel applications and pre-qualification rounds ask suppliers to describe their capability before any specific work is offered. The statement becomes part of the record the buyer checks when work is allocated.
  • Inside a tender response. Many tenders include a section on company information or organisational capability. Some ask for a capability statement by name; others ask questions your statement can answer.
  • Subcontracting and teaming. Prime contractors looking for partners to fill gaps in a bid ask subcontractors for statements so they can show the buyer a credible delivery team.
  • Industry networks and supplier portals. Some industry capability networks and buyer portals invite suppliers to publish a profile, and the statement gives you consistent wording to reuse there.

The common thread is that someone is deciding whether to consider your business further. The statement has to earn that next step.

What to include in a capability statement

There is no single mandatory format, but strong statements cover the same building blocks. Treat the list below as a checklist and adjust the order for each buyer.

1. Company overview

Open with two to four sentences that explain what your business does, who it serves, and where it operates. Include your legal entity name and trading name if they differ, the year you started trading, and your service regions. Avoid a mission statement here; buyers want to know quickly whether you are in scope.

2. Core capabilities

List the services or products you deliver, written in the language buyers use when they procure them. If a buyer calls it “grounds maintenance” in their tender documents, use that term in your statement instead of your internal product name. Keep this to the capabilities you can genuinely deliver at scale, and put the ones most relevant to the reader first.

3. Differentiators

Explain what makes your business a lower-risk or higher-value choice than other capable suppliers. Good differentiators are specific and checkable: a delivery method, a type of accreditation, a regional presence the buyer needs, a specialist team, or a track record with similar organisations. “Committed to excellence” is not a differentiator, because every competitor could print the same sentence.

4. Past performance and case examples

This is the section evaluators read most closely. Pick two or three examples of comparable work and, for each, state the client (or client type if confidential), the scope, what you delivered, and the outcome. Where you have measured results, include them; where you do not, describe the outcome plainly. Note whether a referee is available.

5. Certifications and accreditations

List the certifications that matter in your industry and to public buyers, such as quality, environmental, and safety management systems, information security certifications, industry licences, and prequalification status with relevant agencies. Include insurance types if buyers in your sector routinely ask for them. Keep certificate details current, because an expired certification on a statement is a credibility problem.

6. Key personnel

Name the people a buyer would work with, such as the managing director, the delivery lead, or the account manager, with a one-line summary of their relevant qualifications or experience. For small businesses, this section often carries a lot of weight, because the buyer is assessing the people as much as the company.

7. Business identifiers and procurement codes

Include the identifiers procurement teams use to verify and categorise suppliers:

  • Australia: ABN (and ACN if you are a company), ANZSIC industry classification, and the UNSPSC categories that match your goods or services.
  • New Zealand: NZBN and any relevant all-of-government or syndicated panel memberships.
  • UK: Companies House registration number, VAT number where relevant, and the CPV codes that describe your work.

Also list any standing offers, panels, or framework agreements you already sit on, plus relevant registrations such as Indigenous business certification or social enterprise status. In the US, the same section usually carries the UEI, CAGE code, and NAICS codes.

8. Contact details

Close with one named contact, their role, a direct phone number, an email address, and your website. A generic inbox makes it harder for a buyer to follow up, so give them a person.

How to tailor a capability statement to each buyer or tender

A single generic statement is a reasonable starting point. A tailored copy is what earns a shortlist place. Keep one master version with all your capabilities, examples, and credentials, then create a short tailored copy for each buyer:

  1. Read the buyer’s documents first. Look at the tender, the statement of requirements, the buyer’s strategy documents, and any published procurement plans. Note the words they use for the work and the outcomes they care about.
  2. Reorder capabilities by relevance. Put the services this buyer is procuring at the top, and move the rest down or out.
  3. Swap in the closest past work. Choose examples with a similar sector, scale, location, or delivery model. A comparable council contract will mean more to a council buyer than a larger private sector project.
  4. Match their terminology. If the buyer talks about “service continuity”, describe your contingency arrangements in those terms.
  5. Check the tender instructions. If the tender asks for specific information, a page limit, or a buyer form, follow it exactly. A statement that ignores instructions can be marked down before anyone reads it.

When the statement goes into a formal tender, it supports your answers to the buyer’s tender selection criteria. Use the same evidence in both places so the evaluator sees one consistent story.

Length and format

Keep a capability statement short enough to read in one sitting. The common convention for a general statement is a single page or a double-sided sheet; tailored versions for a larger tender can run a little longer if the buyer allows it. When a tender sets a page limit or provides its own form, that instruction always wins.

Format guidance that helps busy readers:

  • Scannable structure. Use clear headings, short paragraphs, and bullet points. Readers should find your certifications or your contact details in seconds.
  • Your branding, applied lightly. A logo and brand colours make the document recognisable. Heavy design that hides the content works against you.
  • A readable PDF. Send a PDF with selectable text so procurement teams can copy details into their systems, and name the file clearly with your business name.
  • Plain language. Write for a procurement officer who may not be a specialist in your field. Explain technical terms once, or replace them with plain descriptions.
  • Date and version. Add a date or version so you and the buyer know which copy is current.

Common capability statement mistakes

Most weak statements fail in predictable ways:

  • Writing about yourself in general terms. Phrases like “industry-leading” and “customer-focused” take space without giving the buyer anything to check. Replace each one with a fact.
  • Listing every service you have ever offered. A long list makes it harder to see what you do best. Lead with your strongest capabilities for this buyer.
  • Missing or vague past performance. Without examples, the buyer has to take your capability on trust. Even a small business can describe a few relevant jobs clearly.
  • Out-of-date credentials. Expired certificates, old staff names, or a former address signal that the document has not been maintained.
  • Ignoring the tender instructions. Exceeding a page limit, skipping a requested section, or sending a brochure in place of the requested form can cost you marks.
  • No clear contact. If the buyer cannot reach a named person easily, the statement has not done its job.
  • Inconsistency with the tender response. If your statement claims one thing and your response says another, evaluators notice. Keep the facts aligned across every document you submit.

Capability statement template (copy and paste)

Copy the template below into your word processor, replace each prompt in square brackets, and delete any section that does not apply. Keep this as your master version, then tailor a copy for each buyer.

[COMPANY LOGO]

[LEGAL ENTITY NAME] trading as [TRADING NAME]
Capability statement | [Month and year] | Prepared for: [Buyer name, or "General"]

COMPANY OVERVIEW
[Two to four sentences: what you deliver, who you deliver it to, where you
operate, and how long you have been trading.]

CORE CAPABILITIES
- [Capability 1, written in the buyer's terminology]
- [Capability 2]
- [Capability 3]
- [Capability 4]
(Put the capabilities most relevant to this buyer first.)

WHY [TRADING NAME]
- [Differentiator 1: specific and checkable, such as a method, accreditation,
  regional presence, or specialist team]
- [Differentiator 2]
- [Differentiator 3]

PAST PERFORMANCE
[Client or client type] | [Contract period]
Scope: [What the client needed]
Delivered: [What you did]
Outcome: [The result, with measured outcomes where you have them]
Referee available: [Yes / No]

[Repeat for one or two more relevant examples.]

CERTIFICATIONS AND ACCREDITATIONS
- [Certification or standard] | [Certifying body] | [Expiry or review date]
- [Industry licence or registration]
- [Insurance types held, if buyers in your sector ask for them]

KEY PERSONNEL
- [Name], [Role]: [One line on relevant qualifications or experience]
- [Name], [Role]: [One line on relevant qualifications or experience]

BUSINESS DETAILS
- Business number: [ABN / ACN (Australia), NZBN (New Zealand), or Companies
  House number (UK)]
- Industry classification: [ANZSIC code and description, or SIC code]
- Procurement categories: [UNSPSC codes (Australia) or CPV codes (UK)]
- Panels and standing offers: [Names of panels, standing offers, or framework
  agreements you sit on]
- Other registrations: [For example, Indigenous business certification or
  social enterprise status]

CONTACT
[Name], [Role]
Phone: [Direct number]
Email: [Direct email address]
Web: [Website]

Capability statement example (fictional company)

The example below is for a fictional business, Saltbush Facility Services. The company, people, clients, and projects are invented to show how a filled-in statement reads. Identifiers are left as placeholders.

SALTBUSH FACILITY SERVICES PTY LTD
Capability statement | Prepared for: Regional council facilities tender

COMPANY OVERVIEW
Saltbush Facility Services delivers commercial cleaning, grounds maintenance,
and minor building repairs for councils, schools, and community facilities
across regional New South Wales. We have operated from our depot in the
Central West since 2015 and employ a local, directly supervised workforce.

CORE CAPABILITIES
- Scheduled cleaning of council offices, libraries, and community halls
- Grounds maintenance for parks, sportsgrounds, and public open space
- Reactive minor repairs and make-safe call-outs
- Post-event cleaning for council-run community events

WHY SALTBUSH
- Local supervisors based in the region, so call-outs are attended by people
  who know the sites
- Documented work health and safety system, independently certified
- Site-specific cleaning plans agreed with each facility manager before
  mobilisation

PAST PERFORMANCE
Regional shire council (name available on request) | Current contract
Scope: Scheduled cleaning and grounds maintenance for council facilities.
Delivered: Weekly cleaning schedules, seasonal grounds programs, and a
reactive repair service with a single point of contact.
Outcome: Contract extended by the council at the end of the initial term.
Referee available: Yes

Independent school | Previous contract
Scope: Daily cleaning of classrooms, amenities, and a gymnasium.
Delivered: After-hours cleaning crews and a term-break deep-clean program.
Outcome: Referee available to discuss service quality and responsiveness.
Referee available: Yes

CERTIFICATIONS AND ACCREDITATIONS
- Work health and safety management system | [Certifying body] | [Expiry]
- Quality management system | [Certifying body] | [Expiry]
- Public liability and workers compensation insurance held

KEY PERSONNEL
- Dana Whitfield, Managing Director: oversees contracts and client reporting
- Sam Okafor, Operations Supervisor: manages crews and site inspections

BUSINESS DETAILS
- ABN: [ABN]
- ANZSIC: [Code] Building and other industrial cleaning services
- UNSPSC: [Codes for cleaning and grounds maintenance services]
- Panels: [Panel or standing offer names]

CONTACT
Dana Whitfield, Managing Director
Phone: [Direct number] | Email: [Email] | Web: [Website]

Notice what the example does. The capabilities use council vocabulary, the differentiators can be checked, the past performance describes scope and outcome, and the reader can find a named contact without searching.

How a capability statement relates to tender responses and pre-qualification

A capability statement and a tender response do different jobs. The statement introduces your business and proves general capability. The response answers a specific buyer’s questions, follows their structure, and is scored against their criteria. A strong statement makes the response easier to write, because the facts, examples, and credentials are already verified and written down.

In pre-qualification, the overlap is larger. Supplier panels and pre-qualification stages assess whether a business has the capacity, experience, credentials, and financial standing to be considered at all, and the tender process guide shows where that stage sits before full submissions. The content in your capability statement maps closely onto those questions, so a well maintained master version saves time each time a new panel opens.

Many tenders then ask for the same building blocks again: company overview, key personnel, case studies, and certifications. Treat these as reusable content with an owner and a review date, so the version you submit is always the current one. The guide to tender writing best practices covers how to turn that material into persuasive answers, and the tender bidding process shows where each document fits from capture to award.

59%

of high-win teams use content library automation.

Keep your capability content current

The hardest part of a capability statement is keeping it accurate as your business changes. New contracts finish, staff move on, certifications renew, and the case study you used last year stops being your best example. Assign one owner to the master version and review it on a set schedule, and whenever a major contract starts or finishes.

The same discipline applies to the rest of your tender content. Teams that keep approved answers, case studies, and credentials in a maintained RFP content library spend less time hunting for the latest version and more time tailoring. For suppliers who answer tenders regularly, AutoRFP.ai drafts each tender answer from the company information your team has approved and shows the source behind it, so the capability details you submit stay consistent from one bid to the next. See how it works in our RFP software overview, or use the tender management guide to organise the wider process around it.

About the author

Headshot of Rob Dickson

Rob Dickson

Ops Lead

Ops Lead at AutoRFP.ai. Designs the pipeline, content, and handoff systems bid teams use to run RFPs end-to-end, and co-hosts live sessions on winning workflows.

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Frequently asked questions

What is a capability statement?

A capability statement is a short document that tells a buyer who your business is, what it delivers, how it has performed on similar work, and how to contact you. Suppliers use it to introduce themselves to procurement teams, support a supplier panel or pre-qualification application, and attach to tender responses where the buyer asks for company information.

How long should a capability statement be?

Keep it brief enough that a busy procurement officer can read it in one sitting. The common convention is a single page or a double-sided sheet for the general version. If a tender sets a page limit or provides its own form, follow the tender instructions instead.

Is a capability statement the same as a company profile?

They overlap, but a capability statement is more focused. A company profile describes the whole business. A capability statement selects the capabilities, evidence, and credentials that matter to a particular buyer or category of work, so it reads as a case for why you can deliver.

Do I need a different capability statement for every tender?

Keep one master version, then tailor a copy for each buyer or tender. Reorder your capabilities to match what the buyer is procuring, swap in the most relevant past work, and use the buyer’s own terms for the services you provide. The facts stay the same; the emphasis changes.

What codes should an Australian capability statement include?

Most Australian suppliers include their ABN, and many add the ANZSIC industry classification and the UNSPSC categories that match the goods or services they supply, because government buyers use these codes to categorise work. Add any panel or standing offer arrangements you already sit on, and relevant registrations such as Indigenous business certification where it applies.

Can AI help write a capability statement?

Yes, as long as it works from verified company information. AI is useful for tailoring a master statement to a new buyer, tightening wording, and pulling relevant past work from your records. A person should still check every fact, certification, and contact detail before it goes to a buyer.

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