How to Win Tenders – Our 7 Key Factors
Nov 04, · How to win a tender contract Most organisations will encounter a time when they need to tender for a specific contract – it may be in order to expand and grow, or it may be to continue working with a certain supplier. In both the public and private sector, tendering is the most common way of securing mesmmdaten.com: Amy Forshaw. How to win contracts - BiP Guides.
The prospect of competing for public tenders can be daunting for up-and-coming SMEs. But, as Matt McDonald reports, there are steps that can be taken to maximise the chances of success.
At some point every manufacturer needs to spread its wings and expand. Any SME which is travelling well, and has a good product and a list of satisfied customers needs to take that next step and aim for something bigger.
One obvious way to do this is to try to win business through a public tender. A quick online search reveals there are always several tendering opportunities in the public sector. In fact, there are around Australian Government departments, agencies, and authorities with a range of needs that are satisfied through public tenders. And, on top of that, you can add tenders from the private how to cure sunburn itch. Again, there are always tender opportunities.
Manufacturers are needed to supply products for use within the Australian economy, how to breed a sun dragon in dragon city wiki well as for the export market. The idea of competing for public tender may be too much for some up-and coming manufacturers to contemplate. The managers of such businesses tend to already be time poor and the idea of a public tender is likely to be accompanied by thoughts of endless planning and submission writing added to already full schedules.
As an SME, how should you approach the tendering process? How should you decide which tender opportunities are right for you? How do you go about applying for a public tender? What are the barriers to success? And is there any assistance available? The federal government publishes its business opportunities, annual procurement plans, multi-use lists and contracts awarded in one central location, at the AusTender website www.
Businesses register their area of business interest in an AusTender profile. And having done so, they receive free automatic notification via email of the latest opportunities as they are published. And the various state and territory governments list details of public tender opportunities through their own portals.
For those interested in tenders from the private sector, there are a number of directories which list current tenders. It is important to identify the right customers for your business; customers who want what you have to offer. While government tenders are advertised on centralised websites, individual departments and agencies are responsible for their own business decisions.
There is no single government market, but multiple agencies and countless people making purchasing decisions how to purchase itz cash card behalf of governments.
If you know the business requirements of a particular agency, you are well positioned to target an agency that suits the strength of your business and more likely to win a tender.
As with all business activities, networking and building relationships should never be underestimated. Trade Shows and industry events are always a good way to get your face and your business known. It primes your business for expansion and prepares you for future challenges.
Sub-contracting arrangements or relationships in which resources are pooled between companies can help grow your business and put your company name out there. Next step could be winning a tender. A successful tender needs to clearly satisfy the buyer in three areas. It needs to meet the tender specifications and conditions; it needs to represent value for money to the buyer; and it must not represent a financial risk to the buyer.
Many applications will be eliminated early in the selections process. That way, while you may be asked for clarification at a later date, you will remain in contention.
Emphasise your business strengths and offer the buyers more than they are looking for. A good credit rating is another piece of information that you should put forward. Selection criteria usually covers areas such as technical merit; management competence; financial viability; quality assurance requirements; technical expertise; experience in the field; the skills and availability of key staff; and the risks associated with selecting your business.
The performance history of your company is worth highlighting in your submission. Key projects awards received and the CVs and achievements of staff can all be included in submissions. Having completed a tender application, it is a good idea to have a neutral third party look over it. An unbiased pair of eyes can sometimes see areas where the submission can be beefed up or toned down.
Everything else being equal, the tender will be awarded to the submission which offers how to win a tender contract most attractive price. Value for money will also factor in things like maintenance and running costs.
A project that comes with a low initial price tag but high ongoing costs is not the best value deal. Buyers need to keep the long term in mind. An in the case of government contracts, tenders must sit well with broad government policy objectives. Environmental concerns; energy usage; strategic partnerships; ethical use of resources; and commitments to buying locally all play a part in their decisions.
Government agencies also have relationships with what metal is more precious than platinum three levels of government local, how to win a tender contract, and federal to factor into their decisions.
The federal government has established what it calls Multi-use lists. These are lists of suppliers which have satisfied a list of pre-conditions and are authorised to supply goods and services to government agencies. These lists are established by one or more agencies which operate in a particular sector or industry.
They are open to all interested suppliers and any business which meets the pre-conditions will be added to the list. In some cases, new listings are added as they apply, while for other lists additions are made yearly. It is important to note that being on a Multi-use list does not assure a business of gaining contracts.
Those on the list have simply met the criteria to enable them to apply for tender. Any business that wins a public tender needs to convince the buyer that it represents an acceptable business risk.
Finance can be a problem for many companies attempting to win a public tender. Indeed, it can be a problem for companies which, having already won a tender are having difficulties convincing their banks that they are an acceptable financial risk. EFIC was established to support Australian businesses which are attempting to do business overseas.
Its purpose is to assist Australian exporters and offshore investors by providing them with financial solutions and risk management options. For any aspiring manufacturer the news of a tender win is obviously great news. According to Dravers, banks need to apply rigid rules about what they are able to lend to SMEs. Their lending decisions may come down to the nature or term of the investment or even the political climate of the country in which the business is being done.
And their lending decisions are dictated by quantifiable data such as percentages of security they hold against real property and so forth. SME manufacturers represent a particular challenge for banks.
As such, those SMES are often obliged to put up a performance guarantee that can be called on if the goods are not judged to be up to an agreed standard or are not delivered in an agreed time frame. And, on top of this, there is often a warranty period that must be agreed to. Such periods are often too long for banks to accept. Put simply, the buyer needs to know that it will be compensated if not satisfied with the finished product. Whereas, banks are limited by considerations such how to get rid of poison ivy oak sumac the above-mentioned percentages of security SMEs hold against real property, EFIC has more scope to evaluate companies and the risks they carry.
A self-financing body owned by the federal government, EFIC does not compete with banks. It works in collaboration with them and supplements what they can supply to customers. The organisation can help Australian manufacturers take that important next step to expansion and future success. Search for:. Perhaps they don't have any engineers. So I fully agree with the thrust of this What is the energy density difference between sending coal to Japan vs Hydrogen? Is the any CO2 emissions quantity difference Thanks for bricking the units out there during a pandemic and not supplying one solid system board in months!
Your proposal should be driven by the tender document. It is your guide to winning the contract. That means reading the specification carefully, then reading it again. The tender document should tell you everything you need to know about how the buyer wants to receive your bid. May 01, · All government tenders are awarded points and the bidder that obtains the highest number is awarded the contract. But in line with its procurement policy, government gives preferential points to contactors that are owned and operated by previously disadvantaged individuals (PDIs).Estimated Reading Time: 6 mins. Mar 24, · How to win construction bid contracts: Have confidence Today’s construction bidding environment is competitive and complex. Applying the tips above can help give you a leg up when it comes to winning projects. Have confidence in your people and services — and focus on building a foundation of improved speed and mesmmdaten.comted Reading Time: 6 mins.
Couple this with the vast amount of private sector opportunities in industries as varied as construction and design and there is a large amount of potential money on the table for UK business. How can you ensure that you maximise your revenues by winning tenders? Most businesses want to work with large, lucrative companies who are local or national names, providing great testimonials and boosting their reputation.
Be careful when bidding for contracts as it may be difficult for you to demonstrate success with companies that do not match with this profile. As the tender process can incredibly costly diverting both time and resources away from production and operational functions it is incredibly important that the business only submit bids for contracts that it is capable of servicing and therefore, winning.
Quality of service is usually of paramount importance when it comes to winning a tender. Throughout the application form, there will often be whole sections appertaining to your suitability as a supplier and proof of your success on similar sized projects. For this reason, we would always suggest that you employ a third party proof-reader or bid writing specialist to review your bid before completing the application process.
Checking your own work is extremely difficult and even professional journalists use a sub-editor to ensure the quality of their work is consistent. Usually, only 1 in 3 bids will be accepted which means that your company will fail more frequently than succeed, but why should all the effort and time invested in the project be written off?
Conducting post bid reviews and management meetings can help your company understand both the frailties and strengths of the bidding process. Were all the facts present?
Did management offer support in a timely fashion? Use this feedback to streamline the process and strengthen delivery rather than proportioning blame. When you are bidding, the key focus should be on the services you can provide for the customer. Explain your unique benefits in a simple and precise style focusing on the outcomes that you could potentially create for the organisation running the tender. Consider how they operate and what attributes they require in a supplier rather than simply copy and pasting marketing statements that describe your company.
You should attempt to provide clear reasons appertaining to the suitability of your company as a supplier alongside well-defined business benefits that arise from your unique proposition and selling points. If the potential customer can quickly and readily understand the difference you present, they are more likely to engage favourably with your application. Often similar services are constantly used in conjunction, such as architectural design and structural engineering or copywriting and web design.
Over the lifespan of your business, you will undoubtedly partner with many organisations that can offer complimentary services to your own.
When it comes to winning bids, these connections can prove invaluable in ensuring you can deliver the comprehensive service that your potential customer requires. One of the oldest adages in business is that people buy from people. Getting in front of your potential customer during the bid process can dramatically increase your chances of winning the business. Key decision makers can evaluate you personally and will give you the opportunity to ask fact-finding questions that can shape the direction of the information you put forward in your bid.
Remember that most organisations want to know their suppliers and talking directly to them will give you a much more involved and in-depth awareness of the most important constraints of the tender. It is now becoming incredibly common for organisations to require contractors to demonstrate proficiency in key disciplines. The ISO certification system is now so universally known it will allow you to skip entire sections in a large percentage of pre qualification questionnaires.
ISO is perhaps the most important of these standards proving that your company has the management systems in place to produce a consistently high quality of service. Many organisations, especially those in the public sector will only recognise certificates that have been issued through an UKAS accredited company.
Winning bids can be great publicity for your company, good opportunities and partnerships are chances to express your success on the public stage. There is nothing more attractive than demonstrations of competence and achievement when it comes to winning new business.
Talk about contracts when you have signed them up and again when you have produced fantastic results. UKAS Accredited. Get a quote. Business Essentials 1st March Be Realistic Most businesses want to work with large, lucrative companies who are local or national names, providing great testimonials and boosting their reputation.
Utilise Efficient Quality Checking Systems Quality of service is usually of paramount importance when it comes to winning a tender. Be Concise When you are bidding, the key focus should be on the services you can provide for the customer. Sell Yourself and Your Company One of the oldest adages in business is that people buy from people. Consider ISO Certification It is now becoming incredibly common for organisations to require contractors to demonstrate proficiency in key disciplines.
And Finally Winning bids can be great publicity for your company, good opportunities and partnerships are chances to express your success on the public stage. Search Search for:.