In the high-stakes world of tendering, the quest for success is both exhilarating and nerve-wracking.
Whether you’re a seasoned contender or a hopeful newcomer, the question that echoes through the minds of every bidder is, “What truly separates the victors from the rest?”
The answer lies in the critical success factors. These are the hidden gems that unlock the doors to winning tenders in today’s fiercely competitive landscape.
These factors form the backbone of a winning tender submission – from crafting a compelling narrative to mastering the art of differentiation, each element intertwines to create a tapestry of triumph that leaves your competitors trailing in the wake.
Read on to uncover the critical success factors that can turn your bids from contenders to conquerors, elevating your position in the competitive arena of tendering prowess.
1. Respond to tenders with a high win probability
Either for government tenders or private industry tenders, the first factor is to respond to tenders where the probability of your company winning is high. The reason is that tender evaluators always favour those companies that closely match exactly what they are wanting (i.e. the tender’s Mandatory and Comparative Evaluation Criteria).
If your company isn’t a close match to any of the Criteria, find out who the competitors are (tip: you can often do this by attending the Client’s ‘Industry Briefing’ and noting the attendee list).
Get on your competitors websites and have a look at the type of projects they have successfully completed: if those projects are a very close match to the tender’s Mandatory and Comparative Criteria, and your company doesn’t have a similar match with your projects, then your probability of winning is likely to be low.
2. Proof of capabilities and capacities in your tender submission
The second factor is to make sure you can prove your capabilities and capacities that closely match the tender’s Mandatory and Comparative Evaluation Criteria.
What does proof look like in a tender submission?
In general, the types of proof statements that tender evaluators are looking for include:
- Overviews of successful Projects
- Case studies
- Client Testimonials
- Facts and figures e.g. safety stats over 3-5 years; the number of projects completed on-time and on-budget
- Client lists
- Financial data
If you can’t provide proof of a major claim, then tender evaluators won’t take that claim into account when scoring your tender response.
3. Reduce risk for your client
The third factor is to rigorously reduce the risk of your tender response across the following risk areas that tender evaluators are looking for:
- Relationship Risk: does your client already know who to call in your company if something goes wrong with your products or services?
- Operational risk: to what extent does your client already know that you have successfully delivered exactly what they are wanting? To what extend does your client already know your delivery team?
- Solution risk: does your client want the type of technology or approach that you are proposing?
- Company risk: what are the public reviews of your company like? (for example, Google Reviews); has your company had any negative press articles recently?
- Mobilisation and transition risks: what proven track-record does your company have in getting ready to start contracts (‘mobilisation’) and then successfully starting the new contract from Day 1 (‘transition’)?
- Financial risk: is your company able to provide the required financial guarantees and/or will your company be able to fund the cash-flow required to deliver the Client’s project?
- Pricing risk: what elements of your company’s pricing can vary by more than 5% due to factors outside of your control e.g. freight and logistics costs; your EBA or wage negotiations during your client’s contract term; what are the hidden costs in your proposed pricing? e.g. rework, weather delays, invoice pass-through costs from sub-contractors
- Legal/commercial risk: how many ‘Do not comply’ or ‘Alternatives proposed’ items do you have on the client’s Terms and Conditions?
4. Only 1% or 2% in evaluation score separates the winning bidder
The fourth factor addresses the fact that often only 1% or 2% separates the winning bidder’s evaluation score from the second placed bidder’s evaluation score.
Look at each tender section that you need to respond to and ask yourself ‘What can we offer that is innovative and would increase our Client’s revenues or decrease their costs or reduce their risks?’
Today, evaluators are often very interested in the ability of AI to constantly review operational data and suggest priorities to avoid future costs or disruptions.
Another example is the use of smart technologies to provide the real-time data to AIs, like sensor data.
Another example is the use of renewable energy sources including solar, wind and hydrogen instead of fossil fuels.
What are tender evaluation criteria?
Understanding the tender evaluation criteria and how they are weighted is essential for prospective bidders.
5. Your pricing should be considered as competitive
The fifth factor is to make sure your price will be regarded as competitive.
The key aspect here is to make sure that your total price sits within your client’s budget or is at least average when compared to the industry.
Tip: you can often find out what the winning contract price was for past tenders on government tender websites.
A successful tender submission is not about being perfect or flawless; it’s about understanding the essence of your customer’s aspirations and presenting a solution that resonates with them.
If you ever find yourself seeking guidance on your tendering journey, expert help is just a click away. Whether you’re a small business seeking to break into the defence sector or a seasoned enterprise vying for the next big government contract, our team of tendering consultants is here to support you every step of the way.
Don’t let the opportunity to shine slip through your fingers. Reach out to our experienced consultants today, and together, we’ll fine-tune your tender submission, polish your pitch, and set you on the path to tendering glory!
For more winning insights read our article ‘How To Win A Tender: Our 5 Top Tips’.