Tendering as a method of procurement is used in many sectors, most predominantly construction and manufacturing. It is a popular process as it is seen to promote a transparent, fair, and competitive industry that encourages involvement from newcomers and reduces the likelihood of nepotism.
Successfully winning a tender contract relies as much on your organizational skills as it does your company’s ability to successfully carry out a project. Depending on the size of the project, tender applications can be hundreds of pages long. Providing all relevant information in a succinct manner is essential in order to demonstrate your company’s professionalism and ability to follow instructions.
Follow these steps outlining how to prepare a tender document to increase the likelihood of success with your next big project bid.
1. Determine what the client needs
This step seems easy enough but it is potentially the most crucial as it dictates what information you will include in your submission. Break down the project into fundamental deliverables and ensure that your company has the capacity and resources to deliver the client’s requirements.
Make a checklist of points that you must address in your application and keep this handy throughout the response process.
2. Identify key performance measures
Tendering is a highly competitive process. It pays to study your application from a distance and with a list of key performance indicators that you believe the client is likely to measure your submission against.
Depending on the size and type of project, this could include:
- Cost efficiency: what price are you proposing for project completion? Is this fixed or variable? One-off or recurring? Does it include GST and other taxes?
- Bid compliance: have you completed every section of the application and provided all relevant documentation?
- Viability: do you have the resources and financial ability to complete the project?
- Experience: does your company have experience undertaking projects of a similar size and nature? Do you have references that are able to provide positive recommendations?
3. Respond to the application
Putting together your response shouldn’t be too difficult if you have taken the time to determine what the client needs and how your proposal will be measured.
Ensure you have your checklist of requirements close at hand and work through the response in a logical and methodical manner. Use simple, clear language, and provide supporting information at every opportunity.
4. Include all relevant documentation
A client may request that you provide specific documentation alongside your application. This may include insurance information, resumes of key personnel, accreditations, and financial statements where appropriate.
Consider having these types of documents stored in the same folder or server for quick and easy access, particularly if you are submitting tender applications on a regular basis.
5. Proofread and submit
Finally, proofread and submit your application. Consider having a professional proofreader or simply a fresh pair of eyes within your company read through all aspects of the submission for tonal consistency and to ensure that there are no silly grammar and spelling mistakes. Submit the application before the deadline and in the correct format.
Whilst you may now understand a little more about how to prepare a tender document, also consider reaching out to a professional tender management expert. There is no substitute for the knowledge and expertise that experience can bring.