Your first glance at a PQQ or tender can often leave you overwhelmed, and wondering “Where do I begin!?” There are, however, a number of steps you can take to manage your bid effectively to ensure it is fully compliant, well written, and gains you the most marks.
You don’t have to bid on every job you come across. Winning jobs your company can’t adequately perform can be just as costly as not winning them. Remember, it is never too late to abandon a bid you are working on. For example, let’s say you have purchased plans, attended the pre-bid meeting, done your takeoffs and started taking subcontractor pricing. Once you start crunching the numbers you realize that your company won’t make a reasonable profit if you were to win the contract.
Having a good understanding of the existing site conditions can eliminate problems down the line should you be awarded a project? Unique site conditions like limited accessibility or a location that would require additional costs on items like transportation, equipment, material storage, and labor could exist. Failing to visit the site would leave you unaware that these conditions exist and that additional costs need to be factored into your bid which would cut into your profitability.
The first step in overcoming a large or particularly daunting tender submission is to split the response into different sections and plan accordingly. These sections can then be delegated to a bid team, or be worked through by you; either way ensures a methodical approach to the bid.
Everyone must be aware of the purpose of the bid and how it fits in with your organization’s strategic goals – is it a “must-win” for your company? Or perhaps you are the incumbent for a contract which is part of your day-to-day business. Making sure that all staff are briefed on the scope and importance of the bid; exactly what their role is, and what is expected of them will make the process much more cohesive.
A well-planned and organized bid should ensure all aspects of your PQQ or tender are compliant. One of the common reasons for failing a bid is due to simply forgetting to include important supporting documents or appendices. It is a simple mistake and one which can easily be avoided by keeping track of all supporting documents
Getting subcontractor pricing can be complicated. You want competitive prices from your subcontractors but you also want some assurance that they can perform the work required. This is true whether it is a subcontractor you are using for the first time or one that you have worked with for years. One solution is to set up a pre-qualification process for subcontractors who wish to work with you. This allows you to have a better understanding of the type of work they are capable of performing by evaluating their quality and performance on past projects.
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