An Overview on the Key Steps Involved in the Tendering System

Tenders are floated by diverse organizations to invite bids for large projects or procurement initiatives. Through this system, both private and public sector organizations choose interested and qualified contractors or venders based on certain criteria, including proposed delivery terms, quality and price. The tendering process allows organizations to evaluate a large pool of prospective contactors in a systematic manner, so as to identify the most suitable candidate from among them.  This system also eliminates the suppliers not having the capability to undertake a certain project, and is readily used for the completion of large scale projects owing to its effectiveness and transparency.

 

Most renowned companies and agencies follow a systematic tendering process in order to ensure that the opening and evaluation of tenders are governed in an adequate manner. While certain minute elements involved in IT, construction, energy or drip irrigation tenders might differ as per the requirements of the distinct industries, the major steps involved in them generally remains the same.
Here are some of the key steps interested contractors ideally have to go through while participating in the process of tendering: 

• Sourcing the relevant contracts: In order take part in a tendering process, contractors would first need to source contracts relevant to their domain, and even geographical location and infrastructure. Information about various tenders published in diverse sectors can be acquired through renowned and reliable websites providing accurate and up-to-date tender details. While trying to identify the ideal tender to participate in, the contractors must also take into account their own infrastructure, skill-set, turnover, affiliations, and certifications. It is also highly crucial that the contractors not only consider their ability to put in a compliant bid but also evaluate their overall chances of actually securing the project. 

• Expression of interest: After identifying the ideal tender, the contactors would be required to let the buyers know of their interest in submitting the bid. Subsequent to the submission of expression of interest (EOI), further documentation is issued to the contractors from the buyer, in the form of pre-qualification questionnaire (PQQ), or even the invitation to tender (ITT) itself. It is recommended that the contractors submit their EOI as soon as possible, so that they can get sufficient time to prepare for the bid.
  
• Pre-qualification questionnaire (PQQ): This step is ideally meant to eliminate any under-qualified contractors participating in the process, so as to reduce the total number of candidates bidding for the project. The tender review board evaluates the PQQ and subsequently eliminates the contractors who do not have the capacity to meet the desired standards of the buyers. The contractors therefore provide substantial evidence of their capabilities and expertise in this stage.
  
• Invitation to tender (ITT): The contractors qualifying the PQQ stage will essentially receive the final invitation to tender (ITT). This invitation primarily requests a proposal for what steps the contractors intend take to timely and efficiently complete the project.  While responding to the ITT, the contractors must primarily focus on their unique selling proposition (USP) and how it can add more value to the project. They should also talk about the innovations they can add to the contract in order to gain an edge over the competitors.

To participate in any type of tender, be it energy, construction or drip irrigation tenders, interested contractors must always check out reliable online portals offering tender details and information in order to source the ideal projects from among them.