Last edited 08 Oct 2018

Things to avoid when tendering

Contents

[edit] Introduction

A tender is a submission made by a prospective supplier in response to an invitation to tender. It makes an offer for the supply of goods or services. Tender documents are prepared to seek tenders (offers) from tenderers. The tendering process gives an opportunity to bidders to demonstrate their suitability for the project over competitors, and for the client to assess alternative proposals.

There are several things that should be avoided when tendering for construction projects which can harm the chances of the bid being successful.

[edit] Including unnecessary information

It is important to try and keep the tender concise, relevant and to-the-point. This will make the tender evaluation process easier for the procurement team and will mean that they do not have to spend more time than is necessary getting to the key information.

Information should be submitted in the format required by the client so that they can compare tenders, and care should be taken to ensure that information is consistent across different documents.

[edit] Bidding for too many projects

There can be a temptation to bid for a lot of projects in the hope that this will increase the likelihood of winning work. However, it can be better to concentrate on submitting a few carefully considered tenders rather than spreading resources more thinly over a lot of tenders. By creating a tender assessment process, a company can better understand the tenders that it is likely to be able to deliver well and profitably.

[edit] Overlooking risks

It is important to identify and manage risks, which will be unique to each project. The probability of the identified risks should be considered, and the impact they may have on the project evaluated. This will ensure the bid that is submitted is more comprehensive and that the tenderer is better prepared should they win the contract.

[edit] Submitting a non-compliant bid

Alternative or non-compliant bid proposals may be submitted if the tenderer believes that an alternative to what has been requested by the client could offer better value for money and/or is a more innovative solution. However, non-compliant proposals should only be submitted if they have been requested or are explicitly permitted by the client. They should generally be accompanied by a compliant bid to allow client a way of comparing tenderers.

For more information, see Variant bid.

[edit] Including mistakes

There are several common mistakes that can be made when tendering for construction projects which can harm the chances of the bid being successful. This includes; inaccurate costings, incorrect formatting, missing information and so on.

For more information, see Common mistakes in construction tenders.

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