What Is A Capability Statement? A Brief Overview In 2021

by Sofia

Are you applying for a new and competitive position but you don’t have any inside connections? Even if you have a strong resume, you need to make it eye-catching. A cover letter will also look like what everyone else is doing. One of the best ways to create a first impression is through the use of a capability statement.

The cover letter and resume that you write should wow the panel. Apart from introducing yourself, you have to make sure that your resume stands out. A capability statement will help you to achieve the above objectives perfectly. 

A capability statement is basically a written document that contractors use to show government agencies, and clients, at a glance, why they need to get interested in your construction business. It needs to show and not just tell who you are and what you can do to them.  There is so much that you are going to learn about the capability statement in this article.

Why Should You Write A Capability Statement?

 There are so many reasons that will make you create a capability statement as a construction contractor. Capability statements are part of the bidding process for most contractors. As a contractor, you can use this document to introduce your brand to potential new clients. It will also help you to receive the attention of the receiving officers. 

Strong and attractive capability statements also present a professional image of your brand. It also gives you a competitive edge over those competitors who are less prepared. 

Things To Include In A Capability Statement 

For a small construction business, the capability statement should cover approximately four pages. Here are the requirements that will determine the actual length of your capability statement;

  • A concise profile and introduction of the company
  • The core competencies of your contracting business 
  • The specific areas of expertise and experience that are related to the projects that you handle
  • Any differentiating elements that set your business apart like facilities and equipment 
  • References completed projects and major customers 
  • Profiles of the key personnel and management 
  • Important contact information 

It may seem as if this information is too much to include in the few pages. However, it is rewarding to be straight to the point and concise. Nobody wants to read 20 plus pages in order to tell whether you are the right fit. The case can be worse if they have to dig out the information from poorly organized pages. What customers want from you is to just show them. 

Therefore, you should make it easy for potential customers to see how great your company is. It will be to your advantage if the info that they are seeking just jumps off the page. This will happen if the presentation of your capability statement is clear, complete, and organized. 

Writing A Capability Statement 

1. Know Your Target Audience 

The way you present a government capability statement is very different from that of a private organization or individual. The capability statement that you prepare should tailor to the specific requirements of the project. 

You should know what the audience for the specific submission would like to see. Select the customer preferences, project histories, etc. right from the template of the company. Gather the information that is most relevant to the project. This means cutting what the customer will not want.

2. Set Up The Capability Statement Template 

Whether you are tailoring the generic capability statement of building a template from scratch, begin by putting the desired information in the headlines section. As you continue to fill the sections, the headlines will help you to remain organized. They will also make sure that you don’t just fit everything in one section. Here is part of the headlines of the capability statement and what to include there; 

Company Summary: Introduce yourself and mind what will only matter to your target audience. Provide a short but high-altitude summary of the brand and what it is about.

Core Competencies: Your business can do several things perfectly but focus on what is relevant to the customer at hand. You need to include this in the elevator pitch so as to win the client. 

Differentiators: Identify the things that can set you ahead of the other companies that have similar competencies and project history. What makes you, your business, and your crew more qualified. 

Naica Codes: Consider the use of NAICs code descriptions if the space that you have allows you to do so. 

Certification: If you have any important business classifications and licenses, list them. These could include MOB, SDVOSM, and HUBZone. 

Lastly, make you have a clear title at the top section. Make sure you use the words “Capability Statement” nicely and in big font size.  

3. Complete The Capability Statement Template 

As you fill out the sections in the capability statement, think of how you can present the information in the clearest way. The overview paragraph should be a complete sentence but part of the NAICs codes needs to be bullet points. 

The core competencies can go either way. To sell the expertise that you have in a narrow field, use several sentences that are well-crafted. However, bullet points do communicate long lists in an easier way. As you write the capability statement, think about the reader all the time. 

4. To Stand Out Professionally, It Should Stand Out Visually 

The substance is more important than style but it can be so boring to read some fonts. However, it does not imply that you should be a graphic designer to accomplish this objective. Only give the document some small edge to make it more appealing visually. 

Apply some spacing, a little color, and high-quality site photographs. However, make sure that you don’t also go overboard. If you make it so busy with graphics, fonts, and colors, it may move it away from the real substance. In case you know an individual, who has a good eye, don’t hesitate to request them to help you get the right balance. 

5. Save The Capability Statement In The PDF Format 

For easy updating, you need to retain a word document of the capability statement. However, you need to save a copy of the document as a PDF. It will go a long way in preventing issues with the display. 

You may not be aware of the word processor that the recipient uses and the fonts that they have. The beauty of pdf files is that they have a universal design. 

Conclusion 

Capability statements can appear to be intimidating. However, when you embark on the task, you may discover that the hardest part maybe only getting started. Therefore, the best starting point is to just put something on paper. 

You can also download some capability statement examples to get a better idea of the same. Determine what you need to clean, add, or remove. You will be able to improve your capability statement over time and win better customers. However, the whole process must begin from somewhere. 

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