10 Quick Tendering Tips – Tips for Tendering for Success
Creating a successful tender, bid proposal or grant, starts long before submitting the actual response document. It requires planning, more planning and hard work. Here are Ichiban’s 10 quick tendering tips to allow you to create tenders that will allow you to be remembered and set you upon the path for success. Remember, there is always just one winner but you want to have the best chance to be the winning response.
10 Quick Tendering Tips:
Tendering Tips for Finding Tenders
#1: Planning is Preparedness
#2: Finding the Right Opportunities
Tendering Tips for Working through your Tender
#3: Register your Interest & Note the Key Requirement
#4: Understanding the Tendered Scope
#5: Understanding Pricing
#6: Understanding the Evaluation Criteria, including mandatory and compliance criteria
#7: Understanding Contract Terms and Conditions
Tendering Tips for Submitting the Tender
#8: Quality Matters
#9: Responding to all of the Tender Evaluation Criteria
Tendering Tips post Tender Award
#10: Lessons Learned
More detail on each of our tendering tips are included below.
Tip No 1: Planning = Preparedness
Creating a successful tender, starts long before submitting the tender document. It requires planning.
Two of the questions to ask in the planning phase are:
- Do you have a capability statement?
- Do you have the capacity to take on/supply additional services and/or goods?
Your capability statement is a statement that reflects your business’ competencies, achievements, partnerships, alliances and accreditations. The capability statement is the method to sell your business’ capability to potential business partners, customers, suppliers and other stakeholders.
It is good to know whether you have room to take on additional supply and if you have the right number of people, inventory and capacity before you tender for more. If you do not have the capacity to take on more but would like to do so, the planning phase allows you to work out how to ramp up for additional supply.
Tip No 2: Finding the Right Opportunities
Creating a successful tender, starts long before submitting the tender document. It requires planning and making sure you find the right opportunities.
1) Have you registered on the relevant tender sites to make sure that you know do receive notice of upcoming tenders?
There are several tender notification websites and it is good to find the right ones to register your business’ interest and area of business. There are many free sites but it takes time and effort to register for all of the different free sites
2) Do you have the right tendering notification provider?
It is worthwhile finding a good paid tendering notification provider who will not only combine all of the information on the free websites but will also find opportunities from newspapers and other sources. In considering which provider to use, one would look at the fee payable and whether that equates to value for money for your business.
An example of a great service provider is Australian Tenders.
Tip No 3: Register your Interest & Note the Key Requirements
Have you received notice of a tender you would like to submit a response for?
Key items to remember are:
1) Make sure you register your interest in order to get any updates or changes to the tender;
2) Take the time to read through the tender, note the key requirements and tender contact person. If you do not understand any requirements of the tender, make sure that you contact the tender contact person and get clarification.
Tip No 4 : Understanding the Tendered Scope
In order to submit a tender, it is important to understand the tendered scope. Does it fall within your company’s capability and do you have the capacity to take on more work.
Items to note:
1) What is in scope and what is excluded from the scope?
2) Is the scope within your company’s capability and do you have previous relevant experience?
3) Can you complete the total scope in-house or do you need to subcontract? If not, make sure you allow enough time to get information from the related parties and to agree who does what. If you are in a consortium and the consortium has not been invited to tender, you will have to make sure that you get approval to tender as a consortium.
Tip No 5: Understanding Pricing
In order to submit a tender, it is important to understand the pricing criteria under the tender.
Items to note:
1) are you expected to tender on a lump sum basis/ fixed or variable basis?
2) what is included or excluded in the pricing?
3) do you have enough information to complete the pricing?
It is important to understand the make-up of your pricing and your margins before you submit the tender. These days most businesses are requested to review their tendered pricing to remain competitive.
Also, can you link the pricing back to the scope and determine what your rates will be in the event of changes to the scope?
Tip No 6: Understanding Tender Evaluation Criteria, including mandatory and compliance criteria
In order to submit a tender, it is important to understand the tender evaluation criteria as these will determine your success in tendering.
Items to note:
1) do you understand any mandatory requirements? These normally work on a yes/no and thus in/out basis. If you are not able to complete the pre-qualification requirements, then you have to consider whether it is worth tendering.
2) will you be able to complete all of the evaluation criteria?
3) will you be able to comply?
It is important to understand what the tender evaluation criteria are before you complete your tender submission.
Tip No 7: Understanding Contract Terms & Conditions
Many businesses accept the contract terms and conditions without realising the potential obligations, liabilities and indemnities that are taken on by the business.
Items to note:
1) have you taken the time to read the terms and conditions?
2) do you understand your rights and obligations under the contract?
3) do you require external advice on the contract terms and conditions?
It is important to have a working understanding of the major conditions of your contract and to make sure that you do negotiate the best contract position for your business.
Where you are not able to negotiate terms and conditions, you have to make sure you understand the risks and have appropriate controls in place to mitigate any risks.
Tip No 8: Quality Matters
When submitting your tender, ensure that you answer all of the items required.
1) answered everything that was required?
2) completed all sections?
3) provided all of the documentation and back up required in tender?
It is important to complete all the requirements as requested in the tender.
Quality still beats quantity.
Ensure that you cover the requirements but do not over-provide information where you cannot substantiate your capability and capacity.
Your tender submission must reflect your capability and capacity to complete the contract.
Tip No 9: Responding to all of the Tender Evaluation Criteria
When submitting your tender, it is important to make sure that you can meet all of the tender evaluation criteria.
Areas to note:
1) Can you comply with all of the mandatory requirements? If not, you may be wasting your time completing the rest of the tender.
2) Have you provided all the details as requested?
3) How would you score your business against the tender evaluation criteria and your competitors?
The information provided under the tender evaluation criteria must reflect your capability and capacity to complete the contract. It is also the opportunity for your business to sell your business as the best company to complete the contract.
Understanding who your competitors are and having an understanding of how they would perform is very useful information. The information assists your business in understanding what you can do to be more competitive; both in terms of pricing and quality.
Tip No 10: Lessons Learned
Whether you are the winning company or not, it is important to understand what went well and what did not go so well with your tender submission.
Have you requested and attended your tender de-brief session?
Through attending the tender de-brief, whether you were successful or not, it provides you with an opportunity for lessons learned. It also gives you an opportunity to meet the relevant procurement officer (and those opportunities do not arise often!!) and to begin building relationships. Through this, you may be provided an opportunity for smaller supplyor services and therefore build your capability and reputation.
Lessons learned complete the full circle of tendering for success and forms the foundations for your next tender submission.
Tendering is a business decision that requires dedication and commitment. We hope that out tendering tips provide you some insight and assistance with your next tender.
Please feel free to contact us if you have any questions on our tendering tips or would like to get a quote/copy of our price list.
Have a great day!