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Time Investment

Responding to tenders requires more effort than you may imagine.  The information required can be time consuming and need to be presented in specific ways.  Start early and aim to finish a week ahead of the deadline. If possible investigate previous winners and their bids to check if it’s an appropriate tender for you.

Requirements of the Customer

The key requirement is your ability to do the job, to do it well and within budget.  Government and large business requirements often include compliance with; OH&S, Fair Work Act, Taxes due, Quality Assurance, Environmental, Legal, Unions, to name just a few.  Your organisation structure may be scrutinised i.e. your employee job descriptions, training, prior experience, recruitment, induction, documentation etc.  Your risk management plan may be required. Your systems may need to link in with your customers.  As a contractor you will be representing them, so they want to be sure your business is run efficiently.

You are helping them to meet their customer focus and requirements, plus their ability to be a good corporate citizen.  In the delivery process you have to be good at what you do – customer satisfaction and secondly to drive your cost structure down.  “Economies Of” is a term used in contracting.  It means your experience saves wasted time and you have learnt the traps to avoid.

Tender Process

‘Open tenders’, where you are running with all comers are the least desirable, as most bidders try to compete on price.  If you can get a prospect to issue a ‘Closed tender’ you have a better chance of competing on merit.  Most tenders are won by those who stack the cards in their favour, by writing and sending the quote or influencing the client before the tender process even starts.  Rather than waiting for the bid document to arrive, target clients with a compelling value proposition in an area where you have a “right to win” i.e. you have experience and strong referrals.  Even if the prospect has to tender the work, chances are only one firm will meet the spec – yours.

Remember when tendering, that not everyone reading your bid may be technically informed.  It’s important to communicate and explain well and don’t assume everyone understands your terminology and methods.

Government, Large and Small Business

Government and large business may allow you to check who won previous tenders.  It’s worthwhile to speak with the relevant officer to learn what were the key points that got the winner over the line and what were seen as the strong and weak points of your bid.  You may not get all the answers, but it’s worth being patient and following through.

Tenders for large business tend to be more commercially driven, whereas Government tenders can be impacted by political influences.  The processes are similar, although in the experience of one partner, a larger Corporate – if it truly wants the goods or services, can make a decision quickly.

Tenders for small organisations can be more rewarding, as you can usually obtain more information.  This makes the decision to bid or not easier, saving time on bids that are unlikely to be successful.