Tenders are a dime a dozen. You hear that ping of a notification as another one lands in your inbox, and you think you’ll look at it later because you’ve got clients and paperwork to deal with right now.
But later comes and goes, and before you know it, you’re scrambling to pull your submission together before the deadline. Or you miss it altogether. Easily done when your plate is so full, but there’s no need to keep falling into that trap.
Read on to find out the 10 biggest mistakes contractors make when tenders come in and how you can avoid them.
Forgetting About The Tender
You’re so busy running around like a blue-arsed fly being scalded by subcontractors, merchants and clients that you forget about the tender completely. But that can cost you.
– Create a system to track every tender.
– Make sure you know what’s on your plate, whether that’s using a simple spreadsheet, CRM, or a whiteboard in your office.
Bidding Without Interest
Sometimes, you bid on projects just for the sake of it, even when you don’t want the job. Or worse, you decide not to bid and forget to tell anyone. It’s always good to communicate with the design team. Let them know why you’re not tendering. Maybe your resources are low, you’ve too much on, or it’s just not the right fit. You never know; they might wait for you or keep you in mind for future projects. Honesty goes a long way in business.
Not Acknowledging the Tender
When you don’t acknowledge a tender, the design team are left in the dark. They don’t know if you’re interested or not. This uncertainty can push them toward your competitors. A simple reply makes a big difference. It shows professionalism and keeps you in the running for future projects.
Skipping Requests for Information
If there are any uncertainties within the tender documents, this is when you need to send requests for information. If you don’t, you might miss critical details. Always clarify any doubts with the design team during the tender period. It’s better to ask questions now than to run into problems down the line.
Plus, if you just send in your bid knowing you’ll have to charge more for extras or variations later, you’ll leave a bad taste in the design team’s mouth, which could result in you not being invited to tender the next job.
Ignoring Background Checks on the Client
Not all clients are the same. Some are great to work with; others are a pain in the arse! Before you bid, do your homework. Find out who the client is and what kind of reputation they have. This can save you a lot of headaches down the line.
Overlooking Logistics
When tenders come in, think about the logistics. If you have a job in Sandymount and another in Drumcondra, you could lose an hour going from one site to the other with traffic. Pay attention to where the new site will be and how it lines up with any current projects or ones you know are coming up. You’re better off waiting and tendering for the job that’ll only be ten minutes down the road.
Not Checking Market Rates
Using old rates can lead to inaccurate bids. And you underpricing a job. Every job is different, so the rates will be different. It’s a good idea to check current market rates before submitting a tender to stay competitive – and profitable!
Forgetting Overheads and Preliminaries
Your overheads and preliminaries like supervision, insurance, scaffolding and health and safety costs are crucial. These should be accounted for in every tender. They’re not just costs—they keep your business running. Always factor them into your price because they have to be paid and the costs of them are coming out of your pocket one way or another.
Excluding Essential Items
Sometimes, you spot something missing in the drawings—like a steel beam for a large opening required to hold up the building in the back of a house—but you don’t include it in your tender. Planning to add it as an extra later leaves a bad taste. Price it in from the start and avoid surprises. You want everyone on the same page at all stages of the job.
Missing the Submission Deadline
Submitting bids late is a massive mistake. It sets the impression that if you can’t meet a tender deadline, you won’t be able to stick to a project deadline. If you need more time, ask for an extension well in advance and explain why. Submit your tender on time, make it professional, showcase your past successes and highlight how you delivered similar projects on time and within budget.
Conclusion
Mistakes are easy to make, especially when you’re under pressure. But it’s your reputation and your money on the line. Avoid these unnecessary mistakes and watch the jobs roll in.
Looking for support managing your tenders? Contact us today at Carroll Estimating to find out how we can help you grow your business and make more money with a seamless process from tender bid to final account.