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The tender process can be daunting. However, it is less complicated than many people think it is and many creative and digital SMEs are losing out on potential clients because they shy away from the tender process.
Tenders are invitations from public and private sectors businesses to bid for projects. These will include a tender request document which explains what services they require with specific instructions and criteria desired. When a business finds a tender that is of interest to them, they must consider whether your business is able to perform the needs of the tender. It is worth being realistic as to whether you can or not as you are unlikely to win the tender, wasting your time just as much as the prospects.
Consider whether you have sufficient experience to win it, who your competition is, the potential profit and whether you have enough resources to be able to properly do the work the contract asks for. If you win the contract and are later unable to perform what you claimed you could in your tender, you can be liable to penalties according to the contract’s terms.
If you decide that you can apply to a tender, then you have to register with the relevant portal to gain the documentation for you to fill out if the tender is online, the whole process is very daunting, long and often puts of creative and digital businesses.
It is important when filling out the form to follow the instructions very carefully as any error can cancel your application, so make sure you have plenty of time – don’t leave it to the last minute!! This is where checking several tenders sites weekly is important, to ensure you have the maximum time available to complete the tender.
The tender will then need to be filled in, answering several questions that provide you with the opportunity to explain your relevant experience and argue why you would be best for the project.
You must also include a price for your work. You need to offer a competitive price whilst remembering that you need to make a suitable profit for the effort that will go into the contract. To choose a competitive price, it is often advised to offer the usual cost plus an extra 7.5% tender price, though this will of course vary. The success of a tender is not entirely dictated by the price though – tenderers often win a tender with a higher price because they offer a better service and have answered the tender questions more convincingly. Writing your bid, as well as applying for realistic tenders, becomes vital as a result.
Once all tenders have been submitted, a winner will be decided according to the requirements of the tender document. The winning tender will then be awarded with the contract and terms will be signed. At this point, make sure to fully read and understand the terms so you know what is expected of you. If, on the other hand you are unsuccessful then you may be offered a debriefing. If it very helpful to take advice this as it will help you with your future tender applications.
If you are seriously considering tendering as a route to market, see our blog on on the tendering process on our sister companies website Hudson Succeed.
If you are searching for tender opportunities, or check out Creative Tenders video tutorials.
Good luck!
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