Before we get stuck in, let\u2019s have a quick recap\u2026<\/p>\n
This is a fair question. If you submit the lowest price surely that should be enough to win, right?<\/p>\n
Not quite.<\/p>\n
Smart clients (the kind you want to work with) see the construction phase as the riskiest part of the process (and Contractors as the riskiest appointment).<\/p>\n
This means that if a contractor submits the lowest tender price but they have a poor reputation or vague schedule of work, they will still lose.<\/p>\n
The downside of making a poor impression during the tender stage<\/a> is very expensive. Alternatively, the upside is very good.<\/p>\n Not only can it lead to tender success<\/a>, but even if you aren\u2019t successful, it could make you a front-runner for a future project.<\/p>\n All experienced contractors are familiar with this process.<\/p>\n Broadly speaking it is composed of 10 stages (from a client\u2019s perspective). This is how you gain an edge at each stage of a \u00a310m+ tender:<\/p>\n 1. Tender List Creation\u00a0<\/strong><\/p>\n If you\u2019re operating at this level, you\u2019ll already be building relationships with potential clients, Architects<\/a> and Project Managers<\/a> in advance of the next project.<\/p>\n If your whole pipeline is schemes of this size you have the luxury of time, for a while. The downside is that you have to continually secure large projects to keep your business running.<\/p>\n So then the question becomes, how do you connect with clients you aren’t networking with?<\/p>\n For projects of this size, the most valuable advertising opportunity is hoardings and other onsite branding.<\/p>\n As mentioned above. This onsite branding should supplement other attempts to be \u2018top of mind\u2019 for those pulling together tender lists.<\/p>\n 2. Invitation to Tender\u00a0<\/strong><\/p>\n At this scale accepting the invitation is a strategic business decision. Tendering<\/a> for such large projects requires a lot of work and clients will often invite 4 or 5 firms to tender rather than 3.<\/p>\n However, this is a contractor\u2019s first real opportunity to make a good impression. Site visits<\/a> are a standard. However, this exercise becomes much more useful if you can get to know the client and their needs. An engaged\/professional client will want to meet you anyway.<\/p>\n In our experience, the contractors who ask for a design presentation from the Architect<\/a> (preferably with the client present) tend to feel more familiar and engaged. The presentation also allows you to demonstrate your expertise. As mentioned before, Architects<\/a> can be a great doorway to more projects. Even if you\u2019re unsuccessful, making a good impression on the Architect<\/a> will pay dividends.<\/p>\n If you decline the tender, you can still make a good impression by politely declining and also sharing the kinds of projects you have recently completed or are working on. \u2018 For next time\u2019.<\/p>\n You may not want to be on this list, but you may want to be on the next one.<\/p>\n 3. Tender Issue (Docs are sent out)<\/strong><\/p>\n At this contract value level, tender documents<\/a> should be issued with branded proformas to allow for direct comparison between the returns.<\/p>\n If this isn\u2019t provided an easy way to stand out is to check with the design team<\/a> whether there is a format they would like the information to be returned in.<\/p>\n If the team hasn\u2019t described one it’s unlikely you\u2019ll get a strong steer. However, simply asking allows you to demonstrate your willingness to work together, communicate well and produce good work.<\/p>\n It\u2019s simple but effective.<\/p>\n 4. Tender queries \/ RFIs during the tender stage\u00a0<\/strong><\/p>\n Tender queries are expected at this scale.<\/p>\n These queries give the design team<\/a> a good idea of which contractors are seriously reviewing the project information. The queries are often collated together and answered together but informal communication will still occur between the PM and the client.<\/p>\n Tender queries are a great way to demonstrate your expertise and diligence.<\/p>\n An incisive question could save both you and the client a lot of pain and cost.<\/p>\n Another strategy that could pay dividends would be to confirm whether the client team would appreciate a price for building a more sustainable scheme. For very large schemes this may involve more work, so be sure they want it.<\/p>\n This is an effective way of demonstrating your sustainability credentials, up-selling and managing eco-legislative risk.<\/p>\n For large projects that can be phased but aren\u2019t tendered on that basis, we would recommend providing a phased option. This will seem helpful and proactive and will protect you from mid-negotiation changes in strategy.<\/p>\n As projects become larger this comes more likely. Because of the scale of construction finance being secured debt cost inflation can force the developer to build one section, sell\/rent it, and then finance the second phase with a new debt deal.<\/p>\n 5. Tender Returns\u00a0<\/strong><\/p>\n At this scale, the tender returns<\/a> become very complicated. They\u2019re large, complex and loaded with varying levels of risk.<\/p>\n Ideally, a data room should be provided for each contractor. If one isn\u2019t created, I\u2019d recommend creating one for the client team to download the return from.<\/p>\n Not only is this easier than sending a large email, but it also provides a digital audit trail for the process. This allows a contractor to demonstrate that they work in an organised manner.<\/p>\n For the avoidance of doubt, data rooms should be structured in a logical way with logical file naming and key docs at the top of the structure. Any file revisions need also to be highlighted.<\/p>\n Even at this scale, the thought process of the client can still be \u2018if they can\u2019t format a tender return, can I trust them with my very expensive project\u2019.<\/p>\n C-Link\u2019s<\/a> whole approach is based on best-practice tendering. It standardises the tendering process and gives a great insight into how high-value tenders are considered client side.<\/p>\n An additional risk for clients at this scale is the solvency of a contractor. If accounts aren\u2019t requested, I\u2019d recommend sending them along with your tender return as well as up-to-date insurance certificates and recent client testimonials.<\/p>\n A final point on sustainability. Large buildings\/projects create more CO2. As a result, the whole value chain (from lenders to developers and end tenants) has become much more focussed on sustainability. To date, the focus has been on sustainability during operation. Contractors on frameworks will soon (if they aren\u2019t already) be required to prove that their operations are decarbonised and that their Scope 1, 2 and 3 GHG (greenhouse gas) emissions<\/a> are at acceptable levels.<\/p>\n There are a few ways contractors can decarbonise their onsite operations.<\/p>\n Developing a subcontractor supply chain that is local to every project while maintaining trust and quality is difficult. This is where\u00a0C-Link<\/a>\u00a0can help. C-Link grants contractors access to vetted and pre-approved subcontractors all over the country. As a result C-Links national and multi-regional clients are able to source expertise and reduce the carbon profile of their construction teams.<\/p>\n 6. Tender Return Analysis\u00a0<\/strong><\/p>\n There isn\u2019t much that a contractor can do at this stage to gain a competitive advantage.<\/p>\n 7. Value Engineering \/ Initial Negotiation and clarification<\/strong><\/p>\n Material Cost inflation<\/a> has made Value Engineering<\/a> even more important.<\/p>\n While most teams are good with costs they are less familiar with lead times.<\/p>\n In the Contractor\u2019s Proposals, it would be advantageous to add supporting commentary on lead times and materials scarcity<\/a>. This can be in relation to substituted specs or the base tender spec. Both would be helpful to the design team<\/a> and would communicate mastery of your supply chain.<\/p>\n At this scale, a contractor with a deep supply chain and strong purchasing power will have an advantage and win confidence. In place of this, a contractor with clear commercial awareness will also stand out.<\/p>\n As mentioned above, mentioning the carbon profile of the proposed replacement specifications would send a strong signal to the client that they could be working with the most sustainable contractor.<\/p>\n 8. Tender Award (Contractor is selected and unsuccessful are notified)<\/strong><\/p>\n Good manners and a gracious receipt will be sufficient for this stage. The worst thing you can do at this stage is be rude, unreachable or evasive.<\/p>\n It can be tempting to keep quiet about any problems you noticed in the contract documents.<\/p>\n Don\u2019t.<\/p>\n Surfacing any concerns will help build trust and avoid problems later.<\/p>\n 9. Building Contract Negotiations and clarifications (Insurances, Contract Sum Analysis, Appointments, Novations etc)<\/strong><\/p>\n Building contract negotiations at this scale can be intense. Not least because the scale of the project requires more complex and bespoke contract amendments.<\/p>\n At this scale projects start to be \u2018forward\u2019 and\/or institutionally funded.<\/p>\n As a rule institutional funders can be very tricky and expect non-standard guarantees.<\/p>\n Conversely, they also tend to rely on retained Project Managers<\/a> because they rarely understand construction or development.<\/p>\n In these scenarios, the best way to stand out (positively) is to use a solicitor. The ideal scenario would be for a construction solicitor to support a commercial director\/manager.<\/p>\n Engaging a solicitor may seem costly but it’s not more costly than getting the contract wrong.<\/p>\n The added advantage is that the solicitor will be able to provide some distance and keep things civil. 10. Contract Signing and Commencement\u00a0<\/strong><\/p>\n On projects of this scale, it makes sense to celebrate the new or ongoing working relationship. This should include the design team<\/a> as well as the client.<\/p>\n It\u2019s a small gesture but it will set the tone for working together.<\/p>\n C-Link<\/a> is helping market-leading contractors save hundreds of man-hours by digitising and streamlining their tender processes.<\/p>\n If you\u2019d like to discuss how C-Link<\/a> can help you do the same, drop us a note here<\/a>.<\/p>\n If you\u2019re not ready but you\u2019re intrigued, why not check out our platform<\/a>?<\/p>\n <\/p>\n Photo by Christopher Burns<\/a> on Unsplash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" PART 4 OF 4: HOW TO GAIN A COMPETITIVE EDGE WHEN TENDERING FOR \u00a310M+ CONTRACTS. Before we get stuck in, let\u2019s have a quick recap\u2026 WHY DOES GAINING AN EDGE […]<\/p>\n","protected":false},"author":28,"featured_media":17797,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17792","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"\nHOW CAN CONTRACTORS GAIN AN EDGE DURING THE TENDER PROCESS?<\/h4>\n
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\nNow the focus is shifting to sustainability during construction.<\/p>\n\n
\nOn points of difference offering an explanation as to why you can\u2019t \/ won\u2019t accept certain amendments and proposing compromises will keep things moving smoothly and set the tone for the working relationship.<\/p>\nHOW ELSE CAN I GAIN AN EDGE IN COMMERCIAL TENDERING?<\/h4>\n