Lee Hogan The construction sector is impossible without tenders. Potential clients search for their best-matching performers through tendering procedures. At the same time, trusted and reputable contractors have their portfolios and prepare attractive invites for new customers to cooperate with. This is only the starting point of the tendering process.
Using construction cost estimating software is the most suitable way to become the top candidate among other tender participants. Before the bid invite, the performer should pay attention to collecting data and forming estimating reports. All the financial forecasts and scheduling lead to a deep understanding of your possibilities as the contractor.
All the costing, estimating, and bid-driven processes are automated, so the risk of errors and inaccurate forecasts can ruin your desired profit margins. The more manual work you leave for reporting, the more likely some estimates’ imperfections can occur. Virtual tendering is one more modern option for contractors and clients to skip paperwork routines (digital tools contain automated templates for e-letters to send and communicate online with all the parties).
How Does the Tender Mapping Take Place in Construction?
For example, the client initiates the tendering procedure and waits for contractor offers. The process starts with defining the main parties in the tender. The bid offers to appear in the database, but before this stage takes place, other arrangements should be performed by the participants:
- Preparation of the documents and the brief (contractors + clients). This way, the customer informs participants of the tending procedure and their expectations. In the same way, the contractors prepare their appraisal and design briefs—two key reports that are considered during the tender.
- In parallel, the business justification procedures and delivery strategy processing take place. This paperwork with the arrangements from the legal side should be undertaken before the concept design is discussed.
- When the concept design is ready, the client can arrange the first meeting with the potential contractors. D&B is also possible at this stage. Additionally, timing arrangements begin at this point (single-stage, two-stage, negotiated).
- The developed design initiates the middle-level stage of the tendering process. D&B is possible at this point as well. Then, the technical design development stage takes place. The potential client states that the two-stage negotiation will discuss the concept, design, and technical reporting results.
- The detailed design should then be approved by the client. This can be done during the presentation and the two-stage negotiations mentioned above.
The procurement stage finally takes place. It can cover discussions on costs, financial forecasts, and scheduling. The documents and preparations should include project specifications, tender documentation, and tender action. Finally, the tender mapping ends with the investment decision and the bid-offer approval.
Final Word
The tender mapping is a rather long and complicated process for all parties. But if you understand the stages’ sequence, you can prepare for them. For example, you can divide the tendering process into appraisal, briefing, designing, technical design development, and negotiations.
You must also prepare all the reports, permits, presentations, and other tender documentation. Automating the tendering process is the most optimal solution to make it hassle-free. Use special-purpose software with templates, estimating, costing, and bidding properties to avoid inaccuracies and speed up your high-profit contract signing.
Most construction contractors have already switched to tendering digital tools. Find one that meets your expectations and simplifies all the routine tasks concerning the tender for your dedicated team.