It’s unlikely that in these market conditions construction businesses can operate effectively if they still rely on the outdated method of calling old prospects and hoping they will receive the opportunity to quote for new work, even at low or non-existent margins. As a result, the only construction businesses that will thrive will be those that have a robust system for their tender process.
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Bearing that in mind, here are some top tips for construction companies to reflect on when considering a tender:
1. Take your time
The tender process can be long and complicated, as well as very expensive. To put this in context, construction contractors in Scotland are spending close to £100m a year just on tendering for public sector contracts, which then often take months to come to fruition. Therefore, construction companies need to spend time defining the ideal customer project, allowing the sales team to spend more time proactively prospecting. Pick an area of strength and experience, because if you can act like a consultant it will be easier to make the sale.
2. Ask questions
Don’t be afraid of asking questions as it makes you seem more engaged and interested in the tender. By interrogating the tender and asking probing questions, you can quickly realise whether the tender is right for you and your company.
3. Preparation
Winning significant contracts in construction, infrastructure and civil engineering is nearly impossible without good planning, preparation and a solid grasp of the tendering process. Be sure you have the skills to present your tender and solutions effectively and persuasively. Remember that procurement rules are usually strict and highly prescriptive so you and your team must follow them carefully to avoid being “marked down” or disqualified on a technicality. Make sure:
- Your pre-qualification questionnaires (PQQS) provide the essential information
- You have interpreted the tender document correctly and identified the client’s critical issues
- You review your bid for clarity and ease of reading
4. Remember it is not just about price
Contracts are rarely awarded on the basis of price alone. Success usually comes for those businesses that persuade the client by making a solid case based on quality, price and service. The way you present your team and your business solutions will have a marked impact on the confidence the awarding party has in your capabilities.
5. Is it right for you?
Be honest and consider carefully whether you want to progress with the tender. Is it a good fit with the current schedule and your business capability? There is no point progressing with a project that will only cause stress, as this will not result in a successful project. Be sure you can give the project your full attention, as a half-hearted job will only result in problems and delays.
6. You can say no
If the project isn’t right, you are allowed to say no. If it doesn’t feel like you will win it, you can save yourself precious time that can be spent more effectively elsewhere, helping the business in the long-term. This requires that you have pre-set requirements for continuing with the tender process.
7. Be bespoke
The era of “quote and hope” is over, so it’s imperative to develop a tailored system for dealing with sales prospects. If you do decide to proceed, do not cut and paste content from old tenders, develop new content that makes it clear you are taking the prospect seriously and addressing their individual needs. Use the content gathered from the detailed questions you have asked, playing back the client’s needs and how you can match these needs with solutions point by point.
As the construction industry continues to recover and gain more and more confidence ensuring you have a robust tender process will only be beneficial to your business. Being thorough and asking the right questions to produce a high-quality tender allows for effective planning and selling. Remember, success is a process, built on a series of skills that are learnt, developed and grown over time.
Having a business culture where tenders are considered equally allows construction businesses to follow a best practice system. This process gives assurance that your business is in a much stronger position, rather than being held to ransom by a project that is more trouble than it’s worth.
Shaun Thomson is CEO of Sandler Training in the UK
