Tenders, explained.

Tenders add to the challenging and competitive building arena. They require thought and time, with no guarantee of success.  Here we explain the basics of tendering.

What is a tender?

A tender is one of the ways through which the public sector buys goods and services. Organisations that need work done put out a Request for Proposal (RFP), and invite companies to respond. They do so via a tender, which details how they intend to carry out the work. The tender itself is a formal document that clearly explains how a building company can meet the requirements of the proposal.

What’s the process?

Among Sydney developers, submitting a tender is a very competitive process. It’s often the only opportunity a company has to demonstrate that they have the skills, experience, and resources to meet the requirements and do the work.

At Patterson Building Group, we often ask ourselves the following questions before writing up a response:

• Do we meet all of the criteria in the proposal?
• Do we have the time to undertake this project?
• Do we have previous or similar experience with this type of project?
• Do we have the staff, training, and resources to take on the job?
• Is there any reason why we shouldn’t submit a tender? (This could be anything from having a conflict of interest to not having the finances to see the project through to the end).
• Do we understand the organisation that we are potentially going to be dealing with? Will we work well together?
• If we win, will we need to contract some of the work or can we do it all ourselves?

Once a company has decided that it’s worth submitting a tender, they put a lot of effort in writing a winning response.

Below are some of the key items that need to be featured on a tender document.

• Response to RFP. This is generally a paragraph at the very start of the document. It details why the Sydney commercial builder has decided to respond to the RFP, and briefly explains why they feel they deserve to win the project.
• Company overview. Brief description of the company, and why they would work well when partnered with the buyer.
• Specifications. This is where the company proves that they meet every single requirement on the proposal’s list. This includes factors such as previous experience and resources.
• Price. Provide the best possible quote on the tender. Many buyers won’t negotiate the price at a later stage. Remember that giving value for money is better than offering the lowest price.

Don’t forget that deadlines are the most important thing of any tender response. All RFPs have a due date and companies will not accept anything after that date.

If you can prove you can deserve the work, then you’ve got a very good chance at winning the project. Once you’ve submitted your tender, the rest of the process is out of your control. The most difficult thing about tendering is accepting that the final decision is out of your hands. May the best company win!