We have covered many times the importance of understanding competitiveness in winning tenders. The majority of businesses are aware that tendering is a competitive process and winning tenders is more about performing in the selection process. Many companies have the capability to undertake contracts however winning tenders and being competitive is essential.
Being selected as the winning tenderer with the cheapest price is not ideal. Winning tenders with a competitive price that ensures business sustainability should be the goal. Often departments or companies will not choose the lowest or highest tenderer. Your goal should be to win tenders from second position.
So what are some of the key strategies needed to win tenders from a competitive position?
The purpose of preparing a professional tender document is to demonstrate to the department or company your capability in delivering outcomes as part of a contract. Regardless of the percentages shown in tender documents pricing is a significant factor in selecting a winning tender. There are a number of key factors to consider when preparing your tender that will potentially outweigh pricing. For each of the evaluating criteria within the tender you need to exceed the panel’s expectation and demonstrate above all other applicants you can meet requirements. Here are some key aspects to being competitive and winning tenders:
Compliance: To be competitive and exceed the requirements of an assessment panel and create a winning tender you must be fully compliant. Unless providing cost saving solutions or innovations such as in the building industry tenders should match the exact requirements of the specifications and outcomes expected for any contract.
Examples: Demonstrating your capability to deliver outcomes is an important component to winning tenders. Link this process with the compliance requirements and specifications for the tender. Put in examples of your experience as a company in delivering similar results. Add a summary to each example that clearly demonstrates the benefits gained by the department or company as a result of your experience in that tender.
Personnel: Personnel is a very important component to meeting the requirements of contracts and creating a winning tender. Put forward a description of personnel that have experience in similar projects, relevant qualifications and a proven track record. These personnel should have experience in delivering the projects mentioned in the above examples.
Methodology: Demonstrate the process and methodology through which you will meet the outcomes required for each contract. Include vital aspects such as client communication, planning, risk assessment and safety management, construction processes or service delivery methods and resources. In this component your role is to clearly understand the specifications of the contract and provide a presentation that demonstrates your complete understanding.
Pricing Transparency: A little used strategy when creating winning tenders is to include additional information on pricing. Assessment panels like to understand how pricing was determined. We have been successful in increasing the competitiveness of companies through including a spreadsheet that details each element of the pricing and includes calculations on how final costs were achieved. Not only does this demonstrate your understanding of the contract but also provides peace of mind to the assessment panel on your viability and financial capability to meet requirements.
One of the key elements that is missed in preparing winning tenders relates to linking all key sections and information provided. In the examples above you should clearly demonstrate a link between experience, methodology, pricing and personnel. The closer this link relates to the original contract the more your chances of being successful.
To be successful in winning tenders a clear strategy is required. Undertake a comprehensive assessment of the contract and organisation. The more knowledge and understanding of expected requirements the more chance your tender will be successful. This knowledge will be demonstrated through all aspects of preparation and a professional tender presentation.
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John Matthews
