How to Issue a Construction Tender?

The dream of each contractor is to get the most profitable offers. For this purpose, individual specialists and building companies take part in tenders. This is a kind of competition with the niche representatives in the market. The main idea is to perform more attractive conditions for cooperation (excellent price-quality ratios, accurate estimates, scheduling, and bright presentation of realized construction projects, et.).

The ways to issue tender data become more modern and convenient nowadays. The procedure is easier today than 10 years ago. One of the most useful things in issuing the tenders is the implementation of building estimating software. This way contractors are able to undertake accurate forecasts concerning time limits, costs, and other estimations.

Understanding the Tender Peculiarities

Anyway, you should know and understand traditional methods of issuing tenders. Classically, all tendering information is collected and sent from bidders to the potential clients by mail. It is necessary to pay attention to the presentation to show all the skills, experience, and portfolio in the most attractive way for the customers.

Besides manual newsletters to potential clients, use virtual tendering platforms with helpful cloud-based services. E-tendering has some advantages such as the decrease in paperwork. Digital tendering is going to develop. The number of service tools and features is going to increase day by day in the context of the construction sector.

Tender Addenda: 5 Important Aspects

It is critically important to have an idea when it comes to the tender addenda. There are several necessary points to take into consideration:

  • Tender addenda are not wishful because they may give tenderers the feeling of disorder among project employees.
  • More likely that additional data should be issued during the tender procedure.
  • It should not be indicated in the tender guidance so that members wait for additional details.
  • In case a tender addendum is needed then it has to be issued in the shortest possible time.
  • All the necessary data need to be incorporated into a single addendum.

It is getting more usual for mid-tender surveys to be organized, especially for bigger, more difficult projects. This survey process has such advantages as:

  1. It is a chance to meet the tender team. The opportunity to have a dialog and clarify some aspects is always a wonderful idea.
  2. The number of requests, bids, and the list of requirements for the potential performers can be increased during the tendering procedure.
  3. It is a chance for the customer team to evaluate the progress of each of the bidders. Personal contacts allow clients to undertake reasonable decision-making procedures.

It is very essential to pay attention to all significant data which is opened during the process of the surveys. Information has to be formally documented and issued as tender queries or a tender addendum to all members. This will provide all members with the same data.

What Is a Tender Recalling (Withdrawals)?

In spite of all the stages taken above it is still possible that some members will recall from the tender process. This may happen for different reasons. For example, they may think that the project is too risky. If such a situation occurs then it is necessary to follow the customer’s procedure for tender withdrawals.

The right to recall the bid invite is available for all the contractors. But usually, building companies that take part in the tendering process understand their risks and participate only in the tenders of their interest. You should always realize your profit margins. So, all the calculations, financial forecasts, and other estimating data entries should be maximally accurate.

What About Public Procurement?

Public procurement rules may be not similar to private customers. In case of more than one withdrawal, there is the option of canceling the tender and beginning the procedure again with a new selection of members. If it is agreed that new members can take part, then all bidders should be notified and all tenders are given any necessary extension.

Sometimes customers have almost unreal expectations concerning costs and scheduling. It is better to avoid risky tenders if you are not sure that this one will be profitable for you. Accurate estimating and successful bidding background will help you to skip unreliable clients and projects with a low-profit margin.

If you have any questions, please ask below!