Things to Consider Before Preparing a Bid Offer

Before taking a plunge into the world of tendering by preparing a bid offer, you should carefully consider and inform yourself upon a number of aspects.  These aspects can be grouped into three parts: administrative requirements, technical requirements and the financial offer. How well you inform yourself and how well you conform to the set-out requirements can determine the success of your offer.

As a form of insurance, bid writers set out specific administrative requirements and conditions that need to be met, in order for someone to be eligible to submit an offer. Specifications can be set with respect to financial stability of the firm. More precisely, information about turnover, profit and loss accounts, balance sheet statements, insurance cover and more can be requested. Along the same lines, companies are often asked whether or not they have participated in similar activities (tender bidding) in recent years. These requirements can be found in the “tender specifications”, and are predominantly listed in the section named “conditions for participation”. Requirements tend to vary with the types and sizes of the contract in question.

The next thing to consider are the technical details. Once you have established whether you conform to the administrative conditions of participation, you should look at what exactly is required – what are the services or products needed? Every tender is accompanied by a document – tender specifications – which outlines the basic information explaining the needed services. You should carefully go through this document to understand if you have the capacity or are able to deliver what is required. For example, if a construction contract required the building of three establishments, do you have the equipment or the manpower to do it? Or, if an entity required legal services for a period of two years, will you be able to provide the same for the whole duration of the contract? Unfortunately, some contract notices remain fairly vague in explaining what is required, and it is in instances like these that you could turn to the Tenderio helpdesk.

Finally, you need to consider the financial offer itself. What is the adequate value for the required services? Some contract notices will include an estimate of the contract value, which in essence portrays the maximum value of the contract that should not be exceeded. On the contrary, when there is no estimate included, you need to take a number of things into consideration before stating a bid price that will match the expectations of both parties.

In the case that you meet all but one or two of the specifications, do not fear – you can still submit an offer with the help of a partner. If you are interested in a contract notice, yet cannot deliver the product or service on your own, there might very well be a partner whose objectives match yours and who would be willing to carry out the contract with you.

You can learn more about the specifications of financial offers and formation of partnerships in one of the upcoming posts!

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