Tendering in construction and how to do it effectively

For construction businesses, tendering is an important step that can set the path to a project’s success. For contractors and construction businesses, getting to grips with the tendering process is crucial for securing and executing projects smoothly. 

No matter the size of your business, knowing how to tender for construction work is the backbone of acquiring new projects. It serves as a competitive bidding process where contractors submit proposals to undertake specific projects. Winning a tender can be a game-changer, giving you a steady stream of work and stamping your reputation in the industry. At its core, tendering is about presenting the right skills, experience, and pricing to meet a client’s needs.

 

What is tendering in construction?

Tendering in construction involves submitting a formal offer to manage a project. This process is designed to ensure transparency and fairness, allowing clients to choose the best proposal based on criteria such as price, experience, and project requirements. 

In the construction industry, you’ll come across various types of tender processes. These can include:

• Invitation to Tender (ITT) 
• Pre-Qualification Questionnaire (PQQ) 
• Selection Questionnaire (SQ) 
• Request for Proposal (RFP) 
• Request for Quotation (RFQ) 
• Expression of interest (EOI) 
• Dynamic Purchasing System (DPS) 
• Any Qualified Provider (AQP)  

Navigating the different types of tenders can be a little tricky. It’s important to recognise the different types and understand how the process for each can differ. Each one requires its own approach and objectives, so getting to know they type of tender you’re going for is key to putting together a winning bid. By mastering the tender process and aligning your strategy with the type you’re tackling, you can boost your chances of success and secure more business opportunities.

 

How to tender for construction work

Prepare documents

The first step in the tendering process is preparing those all-important tender documents. You want to be crystal clear and detailed here, covering the project specifications, pricing, timelines, and the scope of work. Think of this as laying the groundwork for your proposal, and precision here is paramount. This involves gathering all necessary information, consulting with project stakeholders, and achieving compliance with any legal or regulatory standards that the client requires. 

Submit tender proposal

Once your documents are thoroughly prepped and ready to go, the next step is to submit your tender proposal. Make sure you hit the submission deadline and keep to the submission guidelines outlined by the client. Your proposal should be clear, concise, and tailored to what the client needs. It can be helpful to include case studies or examples of past projects that highlight your capability to deliver and meet expectations. 

Await result

Now comes the evaluation phase, where the client reviews all the submissions to pick the best fit. During this phase, the client’s team will assess various criteria such as cost-effectiveness, the proposed approach, and the company’s ability to execute the project successfully. To boost your chances of winning, make sure your proposal is competitively priced and showcases your strengths, unique offerings and any additional value you can bring to the project that will help set you apart. 

Once the process is complete, the client will select the winning bid. At this stage, it’s highly unlikely there’ll be an opportunity for significant negotiation, particularly on the overall price, and some tenders may not offer any scope for negotiation. If anything is negotiated, it’s more likely to be areas such as contract wording and pricing from the perspective of additional items.

Once everything has been finalised, the contract will be awarded and those who are unsuccessful will be informed. Don’t be disheartened if you don’t win every tender you apply for. If you want to improve your applications, you can request feedback on your proposal to understand where you missed out. Asking for feedback on your tender can help you to gain insight on how you can improve your bid next time around.

 

Effective tendering strategies

Mastering effective tendering strategies is important for securing successful bids and creating long-term partnerships. Let’s explore the key approaches and techniques that can give your business a competitive edge when competing for tenders.

Research

Thorough research into the client’s needs and expectations is critical. By understanding what the client values most, you can tailor your proposal to stand out. This might involve highlighting your track record in similar projects or your commitment to sustainability. This is your opportunity to sell yourself with real-life examples specific to this tender application and to showcase your work. 

Tailor your proposal to the client

Each proposal should be customised to address the specific needs of the client. Standard templates may save time, but a personalised approach shows a deeper level of engagement and commitment. Do your research and make sure you’ve read the requirements in detail as this will show the client that you’ve really taken the time to understand their needs. 

Consider pricing

Pricing is often a deciding factor in winning tenders. It’s important to strike a balance between competitiveness and maintaining quality. Under-pricing can suggest a compromise in quality, while overpricing might push you out of contention.

Make sure your proposal is professional, clear and organised

A well-presented proposal can make a significant difference. Make sure your documents are professional, well-organised, and clearly articulate your value proposition. Including visuals or case studies can also improve your proposal’s impact. Your proposal should also use clear, easy-to-understand language without jargon.

Demonstrate commitment to Health & Safety

Safety is non-negotiable in construction. Demonstrating a commitment to high safety standards and compliance with relevant regulations can help you stand out. Highlight any certifications that showcase your dedication to maintaining a safe working environment.

For more information, why not take a read of our Health & Safety for construction guide?

 

Your partner in winning more business 

At Citation, we understand the challenge of tendering in the construction industry. Our expertise in Health & Safety and Employment Law can support your business in creating winning tender proposals and keeping your projects on track. Check out our range of Health & Safety services, or HR services to see how we can help your business. With Health & Safety Consultancy, Risk Assessment support, Health & Safety Policy support and more, we can help your business get in the best shape for tendering!Contact us today to learn how we can help you secure more contracts and grow your business. Give our team a call on 0161 532 4684 or email hello@citation.co.uk for more information.