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Understanding tenders

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One of the best ways of enhancing your business is by taking advantage of as many business opportunities as possible. It is; however, time consuming to research all the potential opportunities that become available each day. You can now have a list of tenders, quotations, bids, and other companies’ requests for proposals emailed to you each day. Here we will discuss exactly what a tender is, whether or not a tender will be viable in certain situations and how to decide whether or not to tender for a bid.

A tender is basically an offer to do work, provide a service or supply products and goods at a fixed price. The tender is designed in order to ensure that the work that needs to be done is set out in a reasonable way. There are set policies which can be used as guidelines when deciding which tender to accept. While price is an important factor when choosing which tender or bid to accept; there are other things to consider as well. Once a business tender is accepted, the decision is binding for both parties. In other words the company that won the tender must provide the goods or service as agreed by both parties ant the price that was agreed on by both parties. This amount must be paid by the agreed time. This business tender is a binding contract.Now that we know what a tender is we can consider whether or not tenders are a viable option. Business tenders offer a source of income to small businesses that can be very lucrative. However, due to changed legislation and differing requirements between the governmental and the business sector, negotiation for tenders can be somewhat challenging. So long as you are able to understand the negotiation process and implement it correctly, tenders can be lucrative both on a once-off basis and there is the possibility of return business. For this reason tenders are viable.So, business tenders are viable due to the considerable revenue they bring in. Now we need to discuss how one goes about finding a tender. One way is by following up on the contract notices that are printed in newspapers and certain magazines. Another is by obtaining the government tender bulletin; and a third is by browsing the department websites. However, these can be both costly and time-consuming. An easier alternative is to sign up with an online tender company where you will pay a monthly subscription. This company will compile a list of tenders and business opportunities that are relevant to your specific business requirements. If you are a small business then can request tenders that are specific to your area, or you can request tenders from the whole country. A list of tenders relating to your specific requests and requirements will either be emailed to you daily or you can access the website for other information.When deciding whether or not to bid for a contract there are a few things that should be considered, as setting up a proposal is not only time-consuming, but also costly. By following this process your decision will be an easier one to make: 1. Obtain the bid documents and examine it thoroughly. 2. Determine whether or not your company can meet the skill-, technical- and experience requirements. 3. Determine the cost of preparing the bid. Does the work fit into your business position and strategy? 4. Estimate projected expenditure and decide whether the income is sufficient to justify the tender. 5. Consider how this job will affect you and your staff and potential business opportunities.6. Also consider how the client will affect your future business and whether you may offend them by not bidding. 7. If you decide to proceed contact the client and request tender documentation. Usually the client will speak with you on an informal basis at which time you can determine exactly what they want. After this process has been completed you need to decide whether or not to bid for the tender. Thus begins the process of preparing and delivering your bid. It is important to follow up on your proposal and to enquire where in the selection process the client is. If you are awarded the contract you are then obliged to complete the work to specified standards and by the specified date. If you are not awarded the contract it is recommended that you enquire as to why not – this may help you in your endeavours for future bids. Tendering, even if unsuccessful, can lead to further business opportunities with the same client and serve to improve your potential with future clients.

Katie Stephens works in the marketing department of a building company and is in charge of presenting

tenders

and following

business leads

.

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Understanding tenders}