6 Ways to Avoid Common Tendering Errors in Businesses

A lot of businesses find problems when it’s about finding a tender before it reaches its deadline. However, much has been changed in the last few years and tender information is no more confined to newspapers and magazines. One can easily find about the tenders, right from their launch to requirements to their deadline online. Some of the websites act as a detailed directory for tenders and list down all the tenders that are currently running; be it an Indian tender, a global tender or tender being launched for any sector like construction, power, etc.

Finding about power sector tenders is not where the work ends. Instead, the actual responsibility of businesses starts from here. Writing a good tender or request for proposal is one thing that matters a lot. However, when undertaking this task a lot of businesses are seen committing certain mistakes.

Few of these common errors are listed below:

1. Following an Incorrect Formatting and Presentation: Generally, businesses overlook the style of presentation when submitting an effective tender proposal, which is considered to be a big mistake. Following incorrect format can even lead the proposal to get strike out from the list.

2. Lack of Understanding About Customer’s Business: In the tender request, businesses need to demonstrate the problems a customer is facing and what they are trying to achieve. Writing generic submissions that don’t show any understanding about customer’s business is a big no.

3. Incorrect Assumptions or Unanswered Questions: Properly understand what the question means than assuming it all by yourself. This way, you will be able to answer what is asked; instead of what you perceive. Whenever in doubt, clear your queries with the customer. Besides, make sure you answer all the questions without being missing on any.

4. Providing Incomplete Information: Go through your power sector tender proposal repeatedly so as to not miss any information. Provide all the information about your business, number of resources you will be using to complete the tender, etc. Also, make sure you submit enough number of bidding copies.

5. Incorrect Cost Schedules: When submitting a tender proposal, you generally need to complete a pricing template. This makes various submission comparisons easier for the buyer. If you make a mistake in setting the template, your prices may not be accepted or marked correctly.

6. Offering Late Submissions: Focus on the deadline, right from the very beginning. This way, you will be able to submit the tender proposal much before the deadline. Avoid waiting for the last date of submissions. Late submission may disqualify your candidature.

Avoiding these above mentioned mistakes along with keeping some tendering aspects in mind can increases your chances of winning power sector tenders. Try to show a professional image when writing a tender proposal. Also, list some information about your company and business. Besides, it is important to make your submission relevant. This way, you will be able to form an effective tender proposal and might change the buyer’s decision in your favor.

Five Points for Making the Tender Process Simpler

You might have heard about tenders or may have seen advertisements in news paper or websites. There are many companies which put their advertisement for different-different tenders. But getting a tender is not everyone’s cup of tea.

What does the term Tender describes?

Offering to work or supply goods and services at fixed price is referred as a tender. In particular it usually applies to bigger jobs and public sectors work in particular, ranging from the local council to government departments. 

The proposal format of a tender varies widely from industry to industry, but with the same basic requirements. Deadline is the most important part of any tender response. Since this is a highly competitive process, it is very important to remember that you are able to provide the best quote with your bid.

Once the tender has closed, the government and other agencies do not negotiate with the prices. Firstly, the tender process is an understandably competitive one. As everyone wants the same piece of the same pie, this makes sure that the tender you are looking for is up against the toughest of your eligible competitors.

Mentioned below are the steps you must take care of while creating a winning tender:

1. Before tendering you should remember the following:

Get grip of the bid documents and analyze them properly.

Make sure that you can match the technical, skill and experience requirements.

How much will it cost to prepare your bid?

Familiarize yourself with the ins and outs of the tender process – because it’s never as easy as it sounds.

2. Get detailed information: 

You need to get detailed information about the contracts that have been put to tender. National and provincial government departments, parastatals, municipalities and big companies in the private sector, all are the kinds of firms that issue different kinds of tenders.

3. Establish your eligibility: 

The next step is to determine whether you are eligible to tender for the contract or not. The business should:

Be a registered business or be licensed with the relevant local authority

Have a good banking record, credit history and relationship with its suppliers and clients

Be able to deliver on time, on budget and according to the specifications and to deliver consistent quality

Have an up to date tax clearance certificate

Have the cash flow and other resources necessary to complete the contract

Have or can acquire the right equipment and accessories needed to complete the tender

Have products that comply with SABS or other relevant standard authorities

4. Do the paperwork:

The next step is to complete the documentation process. At this point, filling the tender correctly plays an important part in the potential success of your bid.

5. Get the price right:

Price is a big factor in awarding the tenders. So you want to ensure that your price is competitive. Having said this, you also need to make a profit. Those in the know generally advise that you work on a cost plus 7.5% basis. Working out how much the contract will cost requires you to pay close attention to the specifications in the tender.

Keeping all these points in consideration you can make this process simpler and then achieve the power sectors tender and other tenders easily without any hassle.