Tendering for work can be a great source of income for contractors and suppliers. From 2020 to 2021, over 84,000 contracts were published on AusTender, totalling $69.8 billion in contract value. This staggering number only covers tenders from the Australian Government, so you can imagine how much more is spent each year if you also consider the private sector.
So if you are interested in delving into this space, it is crucial to understand how tender management works more deeply. Theoretically, the process sounds simple, but in reality, many technical steps are involved. Thus, many businesses opt to hire a tender writer to help them.
What is a Tender?
When government agencies or private organisations need goods or services, they send out a tender or an invitation for businesses to bid for the project. If you are interested, you can submit an offer for a chance to win the contract. Tenders are especially common in the construction and information technology industry, but different organisations across various industries use them.
Generally, writing a tender is the most important yet challenging step in the tendering process. It undoubtedly takes tons of time and effort since you need to include all the essential details, such as the who, what, when, how, and why. Each client may have specific requirements for the tender, but you generally need to provide the following:
● Company profile
● Capability statement
● Detailed cost breakdown
● Delivery details or project timeline
● Applicable insurances or clearances for compliance
● Licences and proof of qualifications (if suitable)
Given this step’s complexity, many businesses seek help from a professional tender writer to guide them. Having an expert write or review your bids gives you more time to focus on your business and increases your chances of winning contracts.
Types of Tenders
Tender requests may come in many forms, which can be confusing if you are new to the industry. Here are the common types you may encounter while scouting for opportunities:
● Request for Tender (RFT)
● Request for Quote (RFQ)
● Request for Proposal (RFP)
● Invitation to Offer (ITO)
● Invitation to Respond (ITR)
● Expression of Interest (EOI)
Beyond this list, you may also encounter other alternative terms based on your specific industry or location. Generally, they differ in size, scope, and level of detail required in the response. For example, an RFQ only asks for a cost and delivery breakdown, while an RFT is more comprehensive since it includes risk and compliance assessments, intellectual property, and liability items.
How the Tendering Process Works
To know more about what to expect in this industry, here is a general overview of how the tendering process works:
● Release of Tender Opportunity
First, the buyer formally releases a tender opportunity to ask for responses. Fortunately, you can find these opportunities collated in open platforms like Bidsmith, which allows you to filter your search by region and category. If you find a tender you want to bid on, you can register with the issuer to download the given documents and submit your response when ready.
● Select Tenders to Bid On
One of the most challenging steps is deciding what tenders to bid on. It may seem logical to try for as many opportunities as possible, but it is ultimately more time-efficient to choose what tenders have the most potential. So if you need help with this step, consider getting advice from consultants in a reliable tender management company.
● Prepare Your Response
Once you have chosen what tenders to bid on, you can start drafting your response. This step is generally the most tedious and complicated since you must address all the specifications, provide the documents requested, and prove why you are the best fit for the job. Professional tender writers can assist you to maximise your chances of landing a contract.
● Submit Your Response
After preparing your tender response, you can submit it to the portal. Make sure you do this before the closing date and time and follow the specified format.
● Evaluation of Tenders
Once the closing date passes, the buyer will evaluate the submitted tender responses and decide who they want to work with. All you can do is wait at this point. However, you should keep your communication lines open if a buyer wants to interview you or asks you to present your pitch.
Regardless of your business, tendering allows you to secure your pipeline and generate continuous income for your company. However, the process is long and in-depth, making it important to understand each step before you jump into this space. If you find it overwhelming to go through it on your own, hiring tender writers from a tender management company can give you good leverage to win bids.