Straight answer
Bid writing vs grant writing: the difference and why it matters (2026)
What is the difference between bid writing and grant writing?
Bid writing wins a paid contract to deliver something a buyer specifies, usually through public procurement, and is scored on quality, price and social value. Grant writing wins money to deliver your own project for a funder's aims, with no purchase involved. Bids create contractual obligations and payment on delivery. Grants create reporting obligations and fund outcomes.
Last reviewed 11 September 2026. Written by Steph Hamill, HAM Agency.
Side by side
| Bid | Grant | |
|---|---|---|
| What you win | A contract to supply goods, services or works | Money to deliver a project |
| Who defines the work | The buyer, in a specification | You, within the funder's aims |
| How it is judged | Quality, price and social value, against published criteria | Need, fit, outcomes, value for money and deliverability |
| What you owe | Delivery to contract, with remedies if you fall short | Delivery of the project and reporting, with clawback if you do not |
| How you are paid | Invoices against the contract | Usually claims, often in arrears |
| Where you find them | Public procurement notices on the Central Digital Platform | Find a Grant, the Innovation Funding Service, trusts and councils |
| Rhythm | Repeat work: framework and contract cycles | Rounds and deadlines |
Public procurement in 2026: the numbers
The Procurement Act 2023 has applied since 24 February 2025. Thresholds from 1 January 2026, from PPN 023:
| Contract type | Threshold from 1 January 2026 |
|---|---|
| Central government authorities, goods and services | £135,018 |
| Other contracting authorities, goods and services | £207,720 |
| Works contracts | £5,193,000 |
| Light touch contracts, such as many health, social and education services | £663,540 |
| Utilities, goods and services | £415,440 |
Below those thresholds, a contract becomes notifiable, and must be published on the Central Digital Platform, at £12,000 including VAT for central government and £30,000 including VAT for other contracting authorities.
Bid-ready checklist
- Registered on the Central Digital Platform with your identifier ready
- Standard policies current: insurance, health and safety, equality, data protection, safeguarding where relevant
- Last two years' accounts ready
- Three case studies with named outcomes and a referee for each
- A social value offer you can measure and actually deliver
- A go or no-go process, so you only bid where you can win
- A library of approved answers, updated after every bid
- Someone watching notices for your categories every week
Grant-ready checklist
- A clear project with a start, an end and measurable outcomes
- Evidence of need from data, users or partners
- A budget tied to activities, with match funding identified
- Governance and financial controls a funder will trust
- Capacity to report and to evidence outcomes
Which one you need
Bid if you sell something public bodies buy again and again, and you can deliver to a specification at a price. Go for grants if you have a project that meets a funder's purpose and would not happen without the money. Many organisations need both: grants to build capability, bids to earn from it.
How HAM helps
HAM writes bids and grants, and builds the engine behind them, through Capital. Try the free bid readiness checklist or take the discovery quiz.
Questions
When did the Procurement Act 2023 come in?
The new regime went live on 24 February 2025. Procurements started before that date continue under the old rules.
Do I need to register anywhere to bid for public contracts?
Yes. Suppliers register on the government's Central Digital Platform and receive a unique identifier, which contracting authorities use when they publish contract details.
Can a buyer shortlist me out of a small contract before I tender?
For below-threshold contracts, government guidance says there cannot be a separate suitability stage before tenders are submitted to cut the number of suppliers. Suitability can still be assessed at award.
How much does social value count?
For central government contracts in scope, PPN 002 requires a minimum 10% weighting for social value where it is relevant and proportionate. Other buyers set their own weightings.
Practices
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Practice
Capital