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TO BID, OR NOT TO BID
S
o many contractors have been
sent down the road to the
poorhouse by winning tenders
that are far too risky.
A considerable number of books,
papers and articles have been
written on the subject, and it’s an
ongoing hazard for sub-trades in the
construction industry.
On receipt of the tender documents,
it is the estimator or contractor’s first
duty to inspect them, establish viability
and consider whether the closing date
is realistic.
Some years ago, I was engaged in a
multi-million dollar tender involving
myriad documents – including more
than 100 schedule of rates items, a
break-up of prices for individual
sub-contractors and details of
proposed personnel.
This sort of detail can take an
enormous amount of time, but
realistically it is secondary to the final
tender price. I made every effort to
convince the client that this
information be supplied by the
successful tenderer only.
The competitive tender market always
has been a harsh environment, even
during the good times. Winning a contract
involves so much more than creating an
attractively presented submission.
The decision needs to be made
well before any take-off begins as
to whether you actually want to bid,
and this decision should be made
immediately after a tender is released.
Any delay wastes valuable time and
gives your competition an advantage.
There are several crucial questions:
>
Are you strong in this style of contract
and does it fit your business strategy?
>
Are you capable of completing this job
within the time schedule?
>
Do you have the resources, labour, tools,
equipment, infrastructure and finance?
>
Is the location within your scope
of travel?
>
Are you the incumbent contractor?
>
Do you know the strengths and
weaknesses of your competitors?
>
Are your senior staff members
committed to this tender?
>
Can you securely store materials on site?
>
Do you know the head contractor’s
payment performance?
>
Is this project in line with your needs
and goals?
Too many contractors believe that the
more you tender for, the more you win –
but at what cost?
The decision on whether to bid
should be strategic. If the opportunity
does not support your strategic plan,
don’t waste your time. You are far
better employed putting resources and
MAKING SUBMISSIONS FOR
LARGER PROJECTS CAN BE A
NOT-SO-TENDER TRAP.
BRIAN
SEYMOUR
OFFERS SAGE ADVICE
ON AVOIDING THE PITFALLS.
On receipt of the tender documents, it is the
estimator’s duty to inspect them, establish viability
and consider whether the closing date is realistic.
ESTIMATING
E L EC TR I C AL CONNEC T I ON
SUMME R 20 1 6