Best Practices: How to Tender for Work

Understanding the Tendering Process

Looking at how to tender for work? The tendering process is a structured way for businesses to compete for contracts. It involves several key steps that can impact your success in winning bids.

Tendering for Work as a Business

Tendering is how companies seek bids from suppliers for goods or services. You'll need to submit a formal offer detailing how you'll meet the buyer's needs. The process typically starts when a company issues an Invitation to Tender (ITT).

To respond, you'll prepare a bid or tender submission - this is your 'tender for work' that outlines your proposed solution, pricing, and qualifications. You will need to read the ITT carefully and address all requirements. Your bid will be evaluated against others based on criteria like price, quality, and experience.

If you want to tender for work and make a success of it, you'll need strong business writing skills! Specifically bid writing skills. As well as a good understanding of your business capabilities and how procurement works. It's also important to be realistic about what you can deliver within the given timeframe and budget. This will form part of your bid no bid decision. You really need to weigh up not just if you can bid, or even pass the basics, but can you compete? Are you going to be able to win, considering the incumbent and your wider competition.

Types of Tenders and Contracts

There are several types of tenders you might encounter:

• Open tenders: Anyone can submit a bid
• Selective tenders: Only pre-qualified suppliers are invited
• Negotiated tenders: Involve direct negotiations with selected suppliers

Common contract types include:

• Fixed-price contracts
• Cost-plus contracts
• Time and materials contracts

Each type has its own risks and benefits. Fixed-price contracts offer certainty but may limit flexibility, for example. Cost-plus contracts allow for changes but can be riskier for buyers.

Preparing to Tender

Getting ready to tender for work requires planning and preparation. The following steps will help you set a strong foundation for your bid.

Eligibility and Pre-Qualification Criteria

Check if you meet the basic requirements for the tender. Look at the client's pre-qualification criteria. In government tenders this stage is now more commonly called a selection questionnaire (SQ). These might include:

• Financial stability
• Relevant experience
• Certifications or accreditations
• Health and safety records

Make sure you can provide proof for each requirement - but the key is the following the instructions. If you fall short in any area, consider this carefully and ask a clarification question. If you can't 'pass' I'm afraid you are better waiting for a more suitable opportunity. You might need to partner with another company or get extra certifications.

Don't waste time on tenders you're not eligible for. Focus on opportunities where you have a real chance of success. If you aren't sure - ask us! Consider our training courses or our Bid Mentor Service.

Assembling a Tendering Team

Put together a skilled team to work on your tender. Choose people with different strengths:

• A project manager to oversee the process
• Subject matter experts for technical details
• Writers committed to excellence
• Financial experts for pricing and budgets

Assign clear roles and deadlines to each team member ensuring you check for holidays. Make sure everyone understands the tender requirements and your company's approach and the importance of the opportunity.

When considering how to tender for work, capacity and expertise is often a key consideration for many businesses. As a result many consider bringing in outside help. This could be bid management consultants or temporary staff with tendering experience.

Understanding Client Requirements

Read the tender documents carefully. Pay attention to:

• Scope of work
• Timelines and deadlines
• Evaluation criteria
• Submission format

Make a list of all questions and requirements. Check if you need any clarifications from the client. Don't guess - ask for details if something is unclear.

Look for any hidden needs or preferences. These might be in the background information or between the lines of the requirements.

Developing a Win Strategy

Create a plan to make your bid stand out. Think about:

• Your unique selling points
• How you can add extra value
• Ways to show you understand the client's needs

In bids this approach and process is defined as creating win themes.

To do this you will need to know your competition and research the client and their industry. Look for challenges they face and how your solution can help.

If you set realistic goals for pricing and profit margins. Balance being competitive with making sure the work is worthwhile for your business and this becomes your work winning strategy, which is continually refined. Aligning your strategy with the client's evaluation criteria to maximise your score.

Documenting Your Tender Submission

Creating a well-structured tender submission will increase your success. Your document should clearly highlight your company's strengths and ability to meet the client's needs.

Writing a Compelling Executive Summary

If you have the opportunity (rarely the case in public sector tenders), you should include an executive summary. Make it count by highlighting your unique selling points. Start with a brief overview of your company and its relevant experience.

Outline your proposed solution and how it addresses the client's requirements. Be specific about the benefits you'll deliver. Include key figures like project timelines and costs.

Keep it concise - aim for 1-2 pages maximum. Use bullet points to break up text and make it easy to scan. Tailor the content to each tender, focusing on what matters most to that particular client.

Detailing Technical Capabilities and Competencies

This section proves you can do the job. Describe your approach to the project, including methodologies and technologies you'll use. Highlight your team's skills and experience.

Use case studies to show similar work you've done before. Include metrics that demonstrate success, like cost savings or efficiency gains.

Consider using a table to list key team members, their roles, and qualifications. Add visual elements like process diagrams or project timelines to break up text.

Be sure to address all technical requirements outlined in the tender documents. Show how your solution meets or exceeds each one.

Presenting a Robust Financial Proposal

Your financial proposal must be clear, detailed, and competitive. Break down costs for each project phase or deliverable. Include any assumptions you've made about scope or resources.

Use a table to present your pricing structure or work within the pricing schedule. This makes it easy for evaluators to compare your bid with others. Include any discounts or value-added services you're offering.

Explain how your pricing offers value for money. Link costs to benefits where possible. If your price isn't the lowest, justify why it's worth paying more - in formal tenders this means making sure you can maximise your quality scores. You may also consider offering optional extras or cost-saving alternatives. This shows flexibility and understanding of the client's budget constraints.

Risk Management in Tendering

Effective risk management is crucial when tendering for work. It helps you anticipate challenges and protect your interests throughout the tendering process.

Identifying and Mitigating Risks

Start by listing potential risks in your tender. These may include budget overruns, missed deadlines, or quality issues. Rank each risk based on its likelihood and potential impact.

For high-priority risks, develop specific mitigation strategies. You might set aside extra funds for unexpected costs or plan alternative approaches if key resources become unavailable.

Review past projects to spot common pitfalls - the key is ensuring you learn from these experiences to strengthen your bidding approach in the future.

Collaborate with your team to gather diverse perspectives on potential risks. This can uncover issues you may have overlooked. The more practical and contract specific - the better. It makes your business proposal authentic, which builds trust.

Pricing Strategies for Competitive Bidding

Setting the right price for your tender bid is such an important activity, which can't be overlooked. It can make or break your chances of winning contracts.

Cost Analysis and Price Setting

Start by doing a thorough cost analysis. Look at all your expenses, including materials, labour, and overhead. Don't forget to factor in hidden costs like insurance and transport. Once you have a clear picture of your costs, decide on your profit margin.

Cost-plus pricing is a common method. Add your desired profit percentage to your total costs. This gives you a baseline price. But don't stop there. Research the market rates for similar projects. Are you in line with them? If not, you might need to adjust.

Consider volume discounts if the contract is large. This can make your bid more attractive. Also, think about offering tiered pricing options. This gives the client choices and shows flexibility.

Value Engineering and Cost Savings

Value engineering is about finding ways to reduce costs without sacrificing quality. Look at every aspect of the project. Can you use different materials? Is there a more efficient way to do things? These savings can help you lower your bid price. These also need to be detailed in your written answers as it highlights your innovation and why your price is at that level.

Highlight any cost-saving measures in your proposal. Show the client how your approach saves money in the long run. This can justify a higher upfront price if needed.

Think about lifecycle costs, not just initial prices. A slightly pricier option might be cheaper to maintain over time. Point this out to the client. It shows you're thinking about their long-term interests.

Be careful with low-ball bids. They might win you the contract, but can you deliver at that price? It's better to be realistic. A well-priced bid that you can actually fulfil is better than a cheap one you can't. In government tenders they can even exclude you from the process if your price is too low!

Quality Assurance in Your Tender

Quality assurance is vital for creating a strong tender proposal. It demonstrates your commitment to excellence and helps your bid stand out. Let's explore key aspects of quality assurance in tendering.

Developing Quality Control Procedures

Start by outlining clear quality control steps for your project. Define specific checkpoints and review processes. This shows you have a solid plan to deliver high-quality work.

Create a checklist of key quality metrics. Include things like accuracy, timeliness, and customer satisfaction. Explain how you'll measure and track these.

Describe your method for catching and fixing errors. Will you use peer reviews? Automated checks? Make it clear you have a system in place.

Don't forget to mention how you'll handle feedback and make improvements. This shows you're committed to ongoing quality enhancement.

At Thornton & Lowe we offer a Bid Review Service, which adds value to your tender submissions.

Certifications and Standards Compliance

List any relevant industry certifications your company holds. These prove you meet established quality benchmarks. Common ones include ISO 9001 for quality management.

Explain how you'll comply with specific tender requirements. If they ask for certain standards, detail your plan to meet them. Be specific about which parts of your process align with each standard.

Highlight any extra certifications that set you apart. Maybe you have specialised qualifications in your field. These can give you an edge over competitors.

Describe your staff training on quality standards. This shows you invest in maintaining high standards across your team. Remember, it is a competitive process and you need to show how you do this better than others!

Sustainability and Corporate Social Responsibility

Companies today expect bidders to show their commitment to sustainability and social responsibility. Your tender should highlight your green practices and community impact.

Environmental Considerations in Tendering

Look at the client's sustainability goals. Focus on how your company can help meet them. For example, if they want to cut waste, talk about your waste reduction methods.

Mention any green certifications you have. These could be ISO 14001 or industry-specific awards.

Show how you'll reduce the environmental impact of your work. This might include:

• Using eco-friendly materials
• Cutting energy use
• Lowering carbon emissions
• Recycling and reusing resources

Give real examples and numbers. Say how much waste you've cut or energy you've saved on past projects.

Promoting Social Value in Proposals

Explain how your work will benefit the local community. This could mean:

• Creating jobs
• Offering apprenticeships
• Using local suppliers
• Supporting community projects

Talk about your fair labour practices. Show how you ensure worker safety and fair pay.

Mention any diversity and inclusion efforts. This could be programmes to hire from underrepresented groups.

Describe your ethical business practices. This might include your supply chain checks or anti-corruption policies.

Give specific examples of your social impact. You could mention the number of local jobs you've created or community projects you've supported.

On the subject of social value you may also be interested in:

• Social value bid writing
• TOMS: Maximising social impact
• Social Value Model vs TOMS

The Tender Evaluation Process

Tender evaluation is a crucial step in selecting the best supplier for a project. It involves assessing bids against set criteria to find the most suitable option. By reverse engineering the evaluation process and making it make of how you tender for work - you can ensure you maximise your scores. You can also use tender feedback from the evaluation process to calculate your competitors' pricing.

Evaluation criteria are the standards used to judge tenders. These often include price, quality, delivery time, and technical skills. The criteria must be clear and fair to all bidders.

Price is usually a key factor. But it's not always about the lowest cost. Value for money is more important. This means looking at what you get for the price. Quality matters too, of course. In most public sector tenders quality has a higher weighting. Typically 60/40.

The Role of Presentations and Interviews

Face-to-face meetings and tender presentation are less common now but can give a buyer extra insights into potential suppliers. They let you see beyond the written bid. This can make them a little more tricky to evaluate, however, they are often classed as a clarification of the tender responses. If this is the case all bidders will be invited to interview. For open tenders this can be time intensive. However, we still work on tenders which have a separately scored interview stage, for example, worth 10% of the overall marks.

Presentations allow suppliers to show who they are. It's a chance to meet the team. It's your chance to show how well you understand their needs. It's also a chance to ask questions and clear up any doubts. This real practical and considered approach builds trust and therefore credibility.

Post-Tender Communication and Negotiation

After submitting your tender, good communication and negotiation skills are also vital. These help you clarify details, address concerns, and potentially improve your offer.

Effective Post-Submission Follow-Ups

Send a polite email to confirm receipt of your tender within 24 hours. Ask about the timeline for decisions and next steps. Be ready to answer questions promptly.

If you don't hear back, follow up once a week. Be patient but persistent. Show your ongoing interest without being pushy.

Prepare for a possible interview or presentation. Review your tender thoroughly. Be ready to explain your approach and highlight your strengths.

Negotiating Contract Terms

Be open to negotiations if your tender is shortlisted. Know your bottom line but remain flexible. Focus on creating a win-win situation.

Listen carefully to the buyer's needs and concerns. Offer solutions that address these while still being fair to your business.

Consider areas where you can compromise. This might include delivery timelines, payment terms, or specific product features.

Get all agreed changes in writing. Make sure both parties sign off on any updates to the original tender.

If negotiations stall, take a break to reassess. Come back with fresh ideas or consider bringing in a neutral third party to mediate.

Using Feedback for Future Tenders

Getting feedback on your tenders is key to improving your success rate. By analysing outcomes and using a continuous improvement approach, you can boost your chances of winning contracts.

Analysing Tender Outcomes

Look at both successful and unsuccessful bids. For winning tenders, note what worked well. Was it your pricing, technical solution, or project timeline? Identify these strengths and build on them in future bids.

For lost bids, ask the client for detailed feedback. Find out where you fell short. Was it cost, experience, or proposed methodology? This info is gold for your next tender.

Create a simple spreadsheet to track feedback. List key points for each bid, both positive and negative. This will help you spot patterns over time.

Continuous Improvement Strategies

Use your feedback analysis to make concrete changes. If pricing was an issue, review your cost structure. For technical shortcomings, invest in training or new tools.

Set up a regular review process. Before each new tender, check your feedback tracker. Use it to guide your approach and avoid past mistakes.

Consider mock tenders within your team. This practice can sharpen skills and test new strategies. It's a safe way to try out ideas before a real bid.

Stay up to date with industry trends. Attend workshops, read trade journals, and network. This knowledge can give you an edge in future tenders.