The world of tenders can feel like a language all its own – complex evaluation criteria filled with unfamiliar terms.
By understanding the ‘language’ of evaluation criteria, it can help you tailor your bid to speak directly to the tendering authority’s priorities, and increase your chances of submitting a winning tender.
Over the next few minutes, we’re going to break down each of the common tender evaluation criteria terminology and explain its true meaning within the tendering process.
But this is only one part of it.
We’ll also show you how to translate this knowledge into concrete action in your tender response.
Defining the tender evaluation criteria terminology
We’ve found over the many years, that a number of clients don’t understand the true meaning behind the tender evaluation criteria.
This is why we’re going to start by breaking down the meaning behind the common tender evaluation criteria terminology.
Once we understand these, we’ll explore what they mean to your client’s tender evaluators and how you can leverage them to tailor your winning bid.
Tender evaluation criteria: Price or Cost
- Meaning: This is often the most straightforward criterion, simply referring to the total financial cost of your proposed solution.
- Interpretation: While cost is a crucial factor, it’s not always the sole determinant.
Example: A landscaping company tenders for a contract to maintain a corporate office park.
They offer a competitive quote but also highlight their sustainable practices, such as using low-water plants and efficient irrigation systems. These practices could save the client money on water bills in the long run. They also mention their use of specialised equipment that minimises labour costs and ensures efficient task completion.
Tender evaluation criteria: Cost-effectiveness
- Meaning – This criterion assesses how your proposed solution delivers value for money.
- Interpretation – While cost is important, don’t solely focus on the lowest price. Instead, emphasise the long-term value your solution offers. Highlight any potential cost savings (e.g., reduced maintenance costs, increased efficiency) your service might provide compared to competitors.
Example – An energy company tenders for a building’s energy management contract.
They present a competitive price but also showcase their energy-saving solutions (e.g., smart meters) that could significantly reduce the client’s energy consumption over time.
Tender evaluation criteria terminology: Relevant Experience
- Meaning – This criterion assesses your company’s history of successfully completing projects similar to the one outlined in the tender.
- Interpretation – Showcase your relevant experience by highlighting past projects that demonstrate your expertise in handling projects of similar scope, complexity, and industry. Quantify your success by including metrics like project size, budget adherence, and positive client testimonials.
Example – A construction company tenders for a hospital expansion project.
They highlight their experience building healthcare facilities in the past five years, mentioning the number of beds added, budget completion rates, and any awards received for quality or efficiency.
Tender evaluation criteria: Technical expertise
- Meaning – This criterion evaluates your company’s skills, knowledge, qualifications and capabilities required to successfully execute the project or deliver the goods or services.
- Interpretation – Demonstrate your technical expertise by outlining the specific skills, experience, certifications and qualifications of your personnel. Mention any relevant software, technologies, or methodologies you utilise that directly address the project’s needs.
Example: An IT company tenders for a network security upgrade project.
They showcase their team’s certifications in cybersecurity protocols relevant to the tender specifications. They also mention their experience implementing similar upgrades for companies of comparable size and industry.
Tender evaluation criteria terminology: Methodology
- Meaning – This criterion assesses your proposed approach to completing the project.
- Interpretation – Provide a detailed plan outlining your project execution strategy. Include timelines, milestones, resource allocation (personnel and equipment), and quality control measures. Demonstrate your understanding of the project scope and offer innovative solutions, if applicable.
Example – A marketing agency tenders for a social media campaign.
Their methodology section details the target audience research methods, content creation strategy, platform utilisation plan, and key performance indicators (KPIs) they will use to measure success.
Tender evaluation criteria: Resources and capacity
- Meaning – This criterion assesses your company’s ability to fulfill the project requirements in terms of personnel, technology, and financial resources.
- Interpretation – Demonstrate your capacity by outlining the personnel you have dedicated to the project, highlighting their qualifications and experience. Mention any relevant technology or equipment you have access to and the financial resources available to ensure successful project completion.
Example – A manufacturing company tenders for a contract to produce a new product line.
They showcase their experienced workforce, including engineers and production specialists. They also mention their state-of-the-art manufacturing facilities and the financial stability to invest in any necessary upgrades for production.
Tender evaluation criteria terminology: Innovation
- Meaning – This criterion assesses your ability to introduce creative ideas or approaches to the project.
- Interpretation – Think outside the box! If applicable, propose innovative solutions that could improve efficiency, reduce costs, or add value beyond the basic requirements of the tender.
Example – A waste disposal company tenders for a city council contract.
They propose a new technology that converts waste into usable energy, offering not only efficient waste management but also a potential long-term revenue stream for the city.
Tender evaluation criteria: Sustainability or environmental impact
- Meaning – This criterion assesses your company’s commitment to environmental responsibility and the potential impact of your proposed solution on the environment.
- Interpretation – Showcase your company’s sustainability practices and environmental policies. Highlight any certifications you hold (e.g., ISO 14001) and demonstrate how your proposed solution aligns with the tendering authority’s environmental goals. If applicable, mention measures you’ll take to minimise waste, reduce energy consumption, or utilise eco-friendly materials during project execution.
Example – A construction company tenders for a school building project.
They emphasise their use of recycled building materials and energy-efficient construction practices. They also include a plan for minimising construction waste and responsible disposal methods.
Tender evaluation criteria: Quality or performance
- Meaning – This criterion assesses the level of quality or performance you can deliver on the project.
- Interpretation – Go beyond simply stating you deliver high-quality work. Provide concrete evidence to support your claims. Mention past projects where you exceeded quality or performance expectations. Outline your quality control processes and how you ensure consistent delivery throughout the project.
Example – A software development company tenders for a new application development project.
They showcase their track record of delivering bug-free software on time and within budget. They mention their rigorous testing procedures and commitment to user satisfaction.
Tender evaluation criteria: Project timeline or schedule
- Meaning – This criterion assesses your ability to complete the project within the timeframe specified by the tendering authority.
- Interpretation – Demonstrate your expertise in project management. Include a detailed project schedule outlining key milestones and deadlines. Highlight your track record of completing projects on time or ahead of schedule in similar projects. Explain your project management methodology and how it ensures efficient task allocation and timely completion.
Example – An event management company tenders for a conference organisation project.
They present a comprehensive timeline outlining each stage of the event planning process, from venue booking to post-event evaluation. They mention their experience managing similar events successfully within the specified timeframe.
Tender evaluation criteria terminology tips
- Understanding the meaning behind tender evaluation criteria terminology is just the first step.
- Effectively translate this understanding into action through a compelling response that demonstrably showcases your qualifications and how you meet the specific needs of the tender.
Learn the tender evaluation criteria terminology
Tailor your bid to speak directly to the tendering authority’s priorities, and position your company as a strong contender for the coveted contract.
More reading –
Don’t really understand tender evaluation criteria? Click here to go back to the basics
Tenders are often won by just a 1 to 2% difference between competitors, so understanding tender evaluation criteria weighting is crucial.