Tendering methods, Procedures in Construction.There are Open tender,Selective tender, Negotiation Tender, Multi-stage Tendering and Invited Tendering. Tendering is the process by which bids are invited from interested contractors to carry out specific packages of construction work.
Related Articles
![Types Types](https://docplayer.net/docs-images/44/21162605/images/page_1.jpg)
- 1 Bid on Business Contracts
- 2 Apply for & Get Government Contracts
- 3 Bid on HVAC Contracts
- 4 Successful Proposal Strategies for a Small Business
Many small businesses seek to expand their market by bidding on larger or more long-term projects. Contracts might include governmental Requests for Proposals (RFPs) or companies seeking to be the primary provider of a particular product or service for a large conglomerate deal. When bidding for a contract, follow five basic steps to improve your chances of being awarded the contract.
Research and Planning
This step takes the time to establish your company's qualifications to meet the needs of the project. It is critical to know that your company has the experience and resources to fulfill the needs of a major contract. In the research and planning phase, look at your own business plan as a resource for information. Use contract bid-request information, and then pull out relevant details from your own business plan and perfect it for the project.
It's important to do further research on the requesting company, putting out the bid request to understand the mission and vision of the company. You will use all of this information to structure your bid in a way that is tailored to the needs of the request.
Preparing the Bid
Creating the bid requires customized your business plan to highlight how your company is able to fulfill the bid request. Consider the costs of materials, time frame and labor needed to complete the bid. Remember that a bid is not always given to the lowest price but is given instead to the company best able of serving the needs of the bid. Go through the costs, make sure they are accurate and justify the costs, based on project needs. Be clear as to whether you are providing discount or premium services and why that is beneficial for the project.
Submit the Bid
Most government agencies seeking a RFP or a Request for Quote (RFQ) utilize online portals to submit bids. Make sure you learn how the portals work and that the submission goes to the right place with the correct documentation attached in one combined PDF file. The local Small Business Administration (SBA) is a good resource to help navigate government systems.
If the bid is for an organization in the private sector, find out the best method of bid delivery. While digital formats are widely accepted because they are easily distributed to stakeholders, some organizations might want printed bids. Follow their rules to establish your professionalism.
Presentation Platform
If you have done all the work through properly pricing and submitting the bid, you may have an opportunity to meet with the deciding team reviewing the bid. In today's digital world, expect to present in person or via online meetings.
Be prepared to answer questions about the bid, provide additional details regarding pricing or timelines. This is often the stage where you might be asked if this is your 'best and final' bid. Make a decision if there is any room for adjustments and inform the group that you can provide a revised bid if necessary. Be sure to detail what changes for a lower price whether it is quality of materials, the experience of labor or any other factor affecting the end product.
Getting the Contract Award
Be sure to find out when the contract will be awarded. While these timelines are subject to change, you'll want to set your calendars and provide yourself enough time to make the necessary preparations to fulfill the contract. Awarding agencies aren't going to expect a project to start immediately after the award but you will need to start the dialogue on setting start dates. Stay in communication with your agency lead, note any requests for changes in scope and provide adjustments to the contract for them. Be professional and deliver on time to increase your chances for future bidding awards.
References (2)
About the Author
With more than 15 years of small business ownership including owning a State Farm agency in Southern California, Kimberlee understands the needs of business owners first hand. When not writing, Kimberlee enjoys chasing waterfalls with her son in Hawaii.
Cite this ArticleChoose Citation Style
Customers sometimes use the terms 'bid' and 'estimate' interchangeably. Contractors, on the other hand, often attach specific meanings to each word. The two definitions correspond to different parts of the process of calculating a contractor’s internal costs and defining the final price to be charged to the customer. If your construction company is aiming for larger projects or public sector construction work, the following information on estimates and bids can help.
Estimates Are About Costs
The customer wants to know the price of the job. As a contractor, you first need to know what expenses you will incur in doing the job—for example, your costs of materials and labor. The difference between the price you present to the customer (a price estimate) and your expenses (a costing estimate) will be your overall profit. A price estimate provides information to a customer but is not necessarily a commitment from either side to go ahead with a project.
Levels of Accuracy in Estimates
An estimate presented to a customer as the price for a job is expected to be reasonably accurate. Price estimates that turn out to be wildly over or under the final price for a job might cast doubts on your competence as a contractor. On the other hand, your own internal estimates may vary in increasing order of accuracy as you plan for a project.
- Preliminary Estimate: Also known as a 'ballpark estimate,' this helps you to assess the basic feasibility or interest of a project. Some projects may turn out to be the wrong size or involve a risk that you prefer not to accept. If so, the preliminary estimate tells you that you can turn your attention to other more attractive projects.
- Square Foot Estimate: If the project looks 'doable,' the next level of estimation may be to use industry-standard unit costs per square foot, multiplied by the number of square feet (or metric/square meter equivalents.)
- Assembly Estimate: This refines figures and calculations by considering each separate component of a construction project. Foundations, flooring, roofing, windows, and sanitation, for example, may each require different levels of resources, compared to the general ‘one-size-fits-all’ approach of the square foot estimate above.
- Final Estimate: This has the most detail and accuracy. It may involve getting written commitments from partners and subcontractors. It can then form the basis of a firm or official commitment that you make to your customer (see ‘Construction Bids’ below).
Construction Bids
For a project to go ahead, you will need to make a firm offer to your customer. This is your construction bid. In it, you commit to providing your customer with a specified construction at a given price and often by a given date too. If the customer approves the bid, you are then expected to honor your commitment and carry out the work as described in the bid. Clearly, you need the most accurate cost estimates available in order to put the right price into your bid and make a satisfactory profit on the job.
I Want It Now!
Some estimates and bids, especially for bigger projects, may take considerable time and effort. For smaller projects, however, customers may want to take a decision more quickly. They may sign with a contractor offering a reasonable or “good enough” estimate this week, rather than one that comes along with a better one next week. The price estimate may then simply become the bid that is signed by both parties for work to commence right away.
Saving Time and Energy When Preparing Estimates and Bids
![What Is Estimation In Tendering Proecess What Is Estimation In Tendering Proecess](http://www.fao.org/3/x5744e/x5744efv.gif)
Making accurate construction estimates quickly, but still fairly will allow you to do business better as a contractor. Software programs can help you accomplish this with easy-to-use applications that contain a built-in database of unit costs. Cloud-based versions can be accessed over the web on a pay-as-you-go basis: you only use and only pay for what you need.