I have a long history tendering contracts in all different sectors of the construction industry. I often get asked from clients can I give them standard rates for a contract they are tendering, this is impossible to give as no one contractor are the same.
Tendering is not a science; all contractors are unique in the way their business operates therefore this will determine how an estimator will approach the tender.
For those less experienced companies who lack confidence to take on larger contracts prefer to stay within their comfort zone. This is a shame as without knowing it they are closer to their business than larger contractors, they will be better placed to know their workforce capabilities and their bottom line. This can be a big advantage when tendering contracts.
There are lots of equations companies will consider when tendering, therefore the clients intention presenting their tender is to smooth out any discrepancies that may occur, for example if a contractor takes the decision to take on a contract at a loss.
The client preference would not to go down this route as this can create all sorts of contractual problems which benefit’s no one for the successful conclusion of the works. The tender process is there to alleviate these problems allowing everybody to be on a level playing field when tendering.
Any discrepancies will be picked up in the client’s evaluation of the tender.
Within some tenders there can be a pre-qualification questionnaire, this can form a large part of the tender sometimes can carry a weighting of 50% It is important to take time with your answers before submitting.
This is something our support services can help you with.
Following this evaluation generally the client will pick the lowest three submissions and raise any queries with the various contractors. In some cases, if they consider one of the contractors tender to be too low, they will ask them to stand by their price or withdraw.
If you want to find out more how on to be successful with pre- qualifications & tenders our workshops are invaluable experience for anyone to attend.