Tender Bids could be a simple yet tedious process to go through. The tendency to offer more value for less cost would naturally apply to most company when bidding for projects. However when that comes to play, construction companies would usually eat up into their ‘cushion’ capital and end up making lesser then they are suppose to or on the down side, barely breaking even.
Winning tenders are a crucial part of business for any company as the bulk of income comes from projects. Especially in the construction business, service brought to projects are the sole reason why the company is still running because we are all service providers no matter what value we can bring to others. As such, winning tenders (big or small) could possibly be the main priority for any company.
From time to time, we would be that person in-charge of certain project tenders and at times the result of the tender might not go our way. Thoughts of why such results happen would linger and we start to compare what we did for previous won tender versus the lost ones. Good thing for us companies like you and me, here are 4 STEPS to WINNING TENDER BIDS:
1) Small Details Count
There are certainly numerous criteria that decide over who win the tender. These criteria, however, would normally be communicated clearly to help bidders like you adjust your application. (i.e. tender specification)
Get your hands early on such information and never ever leave it to last minute to source out; reason being, lesser time, lesser better offer. – “Most sub-contractor cannot help you much when you give them 1 day to prepare for probable cost. The earlier you approach them(with peace), the better the chance for you to communicate and work the negotiation at a win-win cost.”
2) Filter Suitable Opportunities
Opportunities are everywhere so you would understand. There are many project tender call every few months (big) and every few days (small) but the REAL MAIN THING is are you going to waste man hours researching for a project that does not meet you company’s criteria or area of specialization?
YES of course there are always outsourcing like how most companies are doing but in general, have you built enough “good” rapport with other contractors? Good enough for them to support you wholeheartedly with the cost that both are comfortable? – “If you are lacking of time or perhaps you do not have contacts or suppliers that can support you, you might have to work on that to try bid for a project that needs specialization”
3) Keep an eye on Cost and Benefits
No one would doubt your own optimization of your offer however, you should keep an eye on your cost. As mentioned above, besides the cost incurred, every company would normally have a cushion capital which will later on be converted to profit. With the lack of cost management, this profit would be minimal or in some bad cases be cancelled off. It is therefore less promising to put your hands on a lot of bids rather then focusing on tenders that go along with your core-competency.
After all, that is where outsourcing comes to play but having in mind the best value for money services you can get. In some cases, spending a little more than needed is necessary to bring in the benefit and plus point to go into the tender bid. – “A good example would be for example what some of our current clients are doing. As most of you would know, our Temporary Noise Control Barriers are re-usable as its material are capable enough to support at least 2 to 3 projects. Upon spending the extra capital for project 1, upon completion, those barriers will than be kept. This company however are able to bring in the artillery of providing Noise Control Barrier at no to minimal cost as they are able to “re-use” the purchased barriers from previous project hence cutting the projected cost. In-return, winning over the rest of other bidders”.
4) Build Relations not disunion
This last point cannot be reiterate any more because relation is the core of anything to go well, especially YOUR WAY. Where relationship is fostered, any action that goes with it would work very well – be it negotiation, them absorbing cost and many more. Main thing that needs to be a known fact is never treat others with lack of respect. No matter if the price is not right or they are unable to absorb certain cost, moving on in a lighter note might just create the opportunity for them to support you in the future. – “Like you, getting projects are their source of income and it is only natural for them to approach you should they feel you might need their service or they would check in with you quite frequent to see the status of the quotation they previously handed to you. Handling them harshly will only invite them not to work with you in the future and who knows, they could be the only source of help you need”.
All in all, there can be many other things to take note to win that project to bring the company to greater heights however this 4 points are the ones you need to have. Try do a flashback of what you did to win that project previously, we are sure these above points were touched on. What do you have to lose anyway? Do you fear saving cost for your company? or rather not like to make relations with other companies that can support you work in the future?
Till then. God Bless.