Where Ukrainian Businesses Find International Procurement Opportunities

The World Bank publishes current and planned procurements for projects it finances; individual international organisations and UN agencies have their own supplier portals. In the European Union, a significant share of public procurement is published through TED. Each buyer sets its own rules, so the supplier registers and submits documents under the conditions of the particular procurement.

The owner starts with the goods or services the company can already supply. The expected contract volume is then compared with production capacity, staff, working capital and the delivery period. A large tender may look attractive, but profit disappears if the supplier has to finance production for a long period or bears costs that were not included in the price.

For some procurements, a Ukrainian supplier can bid independently. In other cases, it may be more profitable to work with a local partner or combine the experience of several participants. The owner chooses this approach before preparing the bid and agrees from the outset who supplies the goods, who performs the local part and who receives payment.

International procurement differs from an ordinary sale because the buyer describes the goods or services, evaluation method and future contract terms in advance. The supplier wins commercially when its price covers production, delivery, bank costs and the period until payment. The owner calculates profit before participating and submits a bid only with an acceptable margin.

Supplier Documents and Qualification

An international buyer will usually assess registration, authority of the signatory, financial standing, experience of similar contracts, technical characteristics and compliance with the procurement requirements. Some contracts require bank security, insurance, product certificates or evidence of production capacity. The conditions must be read in the documentation of the selected procurement.

Experience is evidenced by contracts, acceptance certificates, customer letters or other documents expressly accepted by the organiser. The owner should distinguish strong general experience from experience that actually matches the procurement subject. If the buyer requests supplies of a particular scale in recent years, the documents must demonstrate that volume and period specifically.

The supplier calculates the price together with delivery, taxes, insurance, bank costs, guarantees and possible local-partner costs. For a foreign-currency contract, the director also considers the period between paying suppliers and receiving money from the buyer. This allows the owner to preserve the planned profit in the tender price and the ability to perform the contract on time.

Delivery terms are especially important for a goods contract. The owner determines who pays for transport, insurance, customs clearance and local costs, and then includes these amounts in the price. For works and services, the main factors are staff, performance period, local taxes and the possibility of sending specialists to the buyer's country.

How to Prepare for the Contract and Receive Payment

Before bidding, the owner needs to know who signs the proposal, how long it remains valid, whether security is required and when the buyer pays after delivery. These conditions affect the need for credit or the company's own working capital. For a long contract, the director separately assesses whether the price can be changed and who bears costs if delivery is delayed.

After winning, performance of the contract becomes the main task. The director monitors production and delivery deadlines, the responsible employee provides documents to the buyer, and the accountant monitors invoices and payment. If the contract is with an international organisation, the acceptance and payment procedure is determined by its contract and procurement rules.

UBC can help the owner find procurements for the company's goods or services, analyse the requirements and prepare the documents of the Ukrainian bidder. The client receives a proposal based on real experience and financial capacity and, after winning, the contractual documents required for delivery and receipt of payment.

After signing the contract, the supplier earns revenue only when the acceptance conditions have been met and the documents required for payment have been provided. A commercially attractive procurement is therefore a contract the owner can finance, perform on time and close with payment without losing margin. UBC can help assess these conditions before the bid is submitted.

The contract currency also affects profit. If the supplier incurs costs in hryvnia, euro and US dollars, the owner allows for exchange-rate movement up to the payment date. For a long contract, this may matter more than a small difference between two tender prices.

The buyer may require bid security or performance security. Before participating, the owner confirms the amount, form and term of the security and agrees arrangements with the bank if a guarantee is required. The guarantee fee is included in the contract costs in the same way as delivery, insurance and international-payment charges.

If the contract provides for payment after delivery, the owner separately determines the source of working capital for production and logistics. This may be the company's own funds, bank credit or supplier payment terms. The financing cost is included in the calculation so that the international order increases profit and leaves the owner sufficient working capital for subsequent supplies.

Ukrainian businesses can compete for international contracts when the owner calculates the price, financing and delivery period in advance. UBC can help analyse the procurement requirements and prepare the supplier's documents. We will be pleased to answer additional questions and support your entry into international contracting.