5 Things to Consider Before Submitting a Tender
Estimated reading time: 4 minutes
Bid Management & Tender Evaluation
The tendering process is a highly competitive process, where many businesses offer their services and bid for the contracts and projects they seek. For example, government tender requests attract small, medium and large businesses across a wide range of sectors – from office supplies to major construction projects. Bids submitted include a description on how the business can meet the project requirements through the service provide and/or supply the goods requested. They will also need to provide a competitive price for this work. Utilising a well-structured and thought out, tender process allows businesses to capitalise on the many opportunities available. Having a good approach is also able to drive sustainable business savings benefits through building and managing their own tender process.
A tender is a submission made by a prospective supplier in response to an invitation to tender. There are 4 types of tenders, mainly open tender, selective tender, negotiated tender and single-stage and two-stage tender.
With proper preparation and understanding, any business can master its bid management and tender evaluation approach. Once the project has been evaluated to be a good opportunity for the business, there are various factors one should consider before entering the tender process.
Here are 5 issues to look out for before submitting a tender:
- Project Requirements
- Project Costings
- Manpower Capabilities
- Fit of Business Capabilities
- Bid Management Team
- Project Requirements
Read thoroughly and analyse the bid documents in depth, taking time to fully understand the scope of the project and the services required. Is your business prepared to provide exactly what is needed?
- Project Costings
Calculate the cost of the project. How much will it cost for the business to fulfil the contract and then decide whether the profit margin, upon successful completion, justifies being involved in the tender. In short, is it financially worthwhile for you to tender? If not, pass on the opportunity.
- Manpower Capabilities
How would you physically handle the work? Does the business have the capacity available to take on this project and the manpower to effectively manage it? Would the business need to recruit more manpower to facilitate the project?
- Fit of Business Capabilities
Does the business have the expertise, qualifications and necessary accreditations (if required) that are being specified by the buyer? If not, the tender bid may be a complete non-starter.
- Bid Management Team
Who will write the bid for tender? Are they equipped with the skillsets and knowledge to write a successful tender?
If the business is able to satisfy all criteria, it is in a strong position to proceed with the tender. A well-thought out procurement strategy should be able to effectively manage risk of taking on the new project while improving the quality of the supply chain while developing effective and mutually beneficial supplier relationships.
Bid Management & Tender Evaluation is a 3-day training course 7-9 October 2019 (Kuala Lumpur) designed to fully equip delegates with the necessary understanding, skills, tools and templates to swiftly and effectively implement world-class tendered procurement strategies and processes. Gain an understanding and leverage the relationships between commercial requirements and contractual frameworks in supplier negotiation. Ensure your organisation is able to capitalise on the many opportunities available when utilising a class leading approach to a well-structured and thought out, tender process.
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