The tendering process is the backbone of the contracting world. It’s the gateway to securing lucrative projects and establishing business relationships that are the foundation on which your company’s reputation is built.
The prospect of tendering more might seem daunting, especially with costs attached, but what if you could navigate this process without incurring any extra expenses? Let’s walk you through it.
1. Integrate tendering costs into your preliminaries
Preliminaries, often called “prelims” in the contracting world, refer to the initial stages of a construction project. This includes general costs associated with the setup and management of a site before the actual building work begins – think site facilities, safety measures, and early-stage management.
So, how does this tie into tendering costs? By incorporating tendering expenses into these prelims, the result is that you end up distributing them across the project. For instance, if you know you’ll be attending multiple site visits or engaging in consultations as part of your tendering process, factor these costs into your prelims. This approach ensures that when you secure a project, these costs are already accounted for.
2. Lessons from the boots on the ground
We get it. It’s discouraging to put in all that money and effort and see little to no return. But, every ‘no’ gets you closer to that ‘yes.’ It’s essential to keep the bigger picture in mind. Learn from each tendering experience. Was there a specific reason you didn’t win? Feedback can be invaluable. Did a potential client provide feedback on your tender submission?
Analyse it. Even if they didn’t, take a moment to review your submission. Perhaps your pricing strategy needs tweaking, or your project timeline could be more detailed. Always look for growth opportunities.
3. Common tendering pitfalls: Their origins and solutions
The DIY tender approach
Often, businesses believe handling tenders in-house saves money. However, without specialised knowledge, errors can creep in. Engaging experts like QS professionals can offer more accuracy and alternative solutions, which may help you win a job where you originally came in over the client’s budget.
Missing tender deadlines
Juggling multiple projects or simply underestimating the time needed to tender can cause this. Implement a tendering calendar and perhaps use project management tools to track progress.
Underestimating job costs
This happens when not all aspects of a project are considered. Regularly update your cost databases and always leave some room for unforeseen expenses, variations and extras that you might miss.
4. Casting a wider net: Diversifying your tender bids
Why limit yourself? Expanding the types and quantities of projects you bid for increases your chances of securing a contract. For instance, if you usually tender for new residential developments, consider diversifying into extensions, refurbishments, or commercial projects.
5. Smart budgeting for tenders
Setting aside a budget for tendering is your secret weapon. Consider allocating a specific amount each month or year based on your projected tendering activity. Treat it as a recurring business expense, much like utilities or rentals. This way, it’s accounted for and doesn’t become an unexpected burden. The added benefit is you have a professional to do your tendering for you, making sure every job is profitable.
6. Strategise from the get-go
It’s not just about casting a wide net when it comes to tendering for jobs, but knowing where to cast that net. Research potential projects before tendering. Does it align with your company’s expertise? Have you accounted for all associated costs, both obvious and hidden? Strategic bidding makes sure your tendering budget yields maximum returns.
7. Harnessing the power of construction technology
Technology has advanced at a rate of knots within the construction industry. There are a myriad of tools you can use to make the tendering process smoother and more efficient.
Here’s how:
Tender management software
Platforms like Buildsoft Cubit are designed to manage tenders and can streamline the creation, submission, and monitoring of your bids.
Collaboration tools
Use apps like Slack or Microsoft Teams to ensure seamless communication with your team during the tender process.
Cloud storage
Store and back up your tender documents using services like Dropbox or Google Drive. This ensures access to your documents and records anytime, anywhere, and facilitates easy sharing.
Virtual Reality (VR) and Augmented Reality (AR)
Present your project plans in a more immersive and interactive way, allowing potential clients to ‘experience’ the project before it’s built with BAM.
Your tendering checklist
- Research: Understand the project, the client, and their needs.
- Pricing: Ensure your pricing is competitive yet profitable.
- Documentation: Double-check that all required documents are in place.
- Feedback: Analyse previous tenders for lessons learned.
- Timeline: Clearly outline your project timeline, ensuring it’s realistic.
- Follow-up: Engage with potential clients post-submission to address any questions.
- Technology: Use the relevant tools to streamline the process.
- Diversify: Don’t put all your eggs in one basket; apply for various tenders.
- Allocate Costs: Budget for the tendering process in your preliminaries.
- Stay Updated: Industry standards and requirements change; ensure you’re current.
Wrapping it Up
Tendering, while seemingly a cost-intensive process, can be strategically manoeuvred to cost essentially nothing. You can perfect your approach by integrating technology, staying updated, and sticking to the essentials. Every bid, every project, and every client interaction is a step towards refining your tendering process. Your success comes from winning the bid and mastering the art of tendering.
Contact us today to learn more about how the team at Carroll Estimating can help you make your tendering process more cost-effective.
