Preparing a tender submission
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Getting ready to tender
What goes in a tender package?
The types of evaluation methods
Preparing your tender response
Tips for submitting your tender
Common pitfalls of tender submissions
Getting ready to tender
An opportunity to tender (submit a proposal or bid) for work may come through your networks or through an online tender portal such as GETS or Tenderlink.
When an opportunity arises it is important to decide as early as possible if it is worthwhile bidding for. Every tender has a close date so you need to be realistic about whether or not you have the time, tools and resources needed to put forward a strong tender submission.
What goes in a tender package?
When a tender request is put to market, a number of documents will be issued with information around what the client is looking for and what they want to know about the capability and capacity of potential suppliers; this is called a tender package. These documents will outline requirements to deliver the project, along with any technical aspects and any design specifications. The documents within a tender package can vary depending on the nature, size and complexity of the tender request, however below is a list of documents that are often included.
Instructions to tender (ITT) - This sets out instructions to be followed for a tender process such as closing date, how to submit the tender, upcoming briefings and project timelines.
Scope of work - This is a description of the goods, services or works required and background information about the contract such as project requirements, specifications, design drawings, materials etc.
Evaluation criteria - This outlines how the client will evaluate your tender based on set criteria and weightings for each. This is sometimes referred to as 'Award Criteria’.
Terms and conditions - This sets out the basis of the relationship between the client and supplier outlining things like obligations, meeting milestones, performance measures, payment terms, dispute resolution, termination provisions etc. See Contract Management for more information.
Policies - These are the client's policies that a supplier must comply with such as health and safety.
Pricing schedule - This is a list of all items that must be individually priced or costed. For construction these will be priced bills of quantities or schedule of rates. See Pricing Models for more information.
Confidentiality document - This will include information specific to the procurement process itself such as no information about the submission to be disclosed to any third party.
Types of tender evaluation methods
All tender submissions are evaluated based on a set of criteria. The criteria varies but generally covers cost, quality, value of goods, works or services, risk, time and more recently broader outcomes. The methodology used to evaluate a submission also varies based on the evaluation model being used, see below.
Lowest price
Used when the project is simple and the price is the most important factor. Submissions are chosen based on the lowest price.
Brooks law (two envelope approach)
Used when quality is the most important factor and price is not a key driver. Often you will be asked to provide the methodology which will be evaluated first and then the price separately which will then be evaluated secondly.
Simple score
Used if all the criteria have roughly the same level of importance. Can be used in a shortlisting process.
Weighted-attribute
Used if the criteria have different levels of importance and is a way to balance price and quality. Submissions are scored and weighted based on the different criteria.
Target price
Used when the scope of work is hard to define or the budget is the main constraint. Submissions are based on what can be delivered within the set budget.
Preparing your tender response
When submitting a tender the main goal is to demonstrate your capability and capacity to deliver on the project. It is essentially putting forward a sales pitch to convince them you are the right person for the job. Below are some areas that are important to speak to when submitting a tender.
Key areas to address in your response:
Project scope - As well as meeting the requirements make sure you show your understanding of the project priorities and you align with their values, objectives and aims.
Technical approach and methodology - Describe how you will execute the deliverables of the project or scope of work. This should include the steps, tasks, activities, and resources involved in each phase of the project and the reasons for your approach. You can speak to the specific techniques or tools you will use, and the roles and responsibilities of your team members.
Past experience - Nothing speaks louder than being able to draw on past experiences. In all aspects of your submission if you can connect your approach back to a successful project then this will help with building your businesses credibility and clients confidence in your ability to deliver.
Risk assessment and management - Outline how you will identify, evaluate, and mitigate risks that could affect the success of the project. Integrating this into your proposal and highlighting these upfront can demonstrate your credibility, professionalism, and preparedness to think ahead.
Quality control and assurance - Detail how you will measure and evaluate performance such as conducting regular inspections, material tests, thorough vendor assessments, assessing workmanship, etc.
Pricing schedule - Having a breakdown of costs required to deliver on the project requirements such as materials, labour, equipment and overheads. See Pricing Models for more information.
Broader outcomes - Government agencies are advised to consider suppliers that provide value to outcomes rather than just price. This is a great opportunity to detail all the things you do as a business that creates positive cultural, social, environmental, and economic impact in our communities. See Broader Outcomes for more information.
Tips for submitting your tender
Tender formatting & presentation tips
The way you format your tender submission is just as important as the information that has gone into it. A rushed tender can be obvious to a client and be the difference between you and another supplier. This is where attention to detail can really speak to the level of professionalism your business has. Here are some other considerations to think about when putting together your tender submission.
Gather all tender documents - It can be useful to pull key points from the tender documents and use these to develop headings and subheadings. Headings are important to guide the reader.
Write a compelling executive summary - The first thing that the client wants to read is that you understand their needs, can provide a solution and can do it in a way that is cost effective and provides additional value.
Answering questions accurately - Make sure the language you use is clear, concise, relative and informative. Never leave a question unanswered.
Weighting criteria - Use this as a guide to inform what is most important to the client therefore what areas you should be really speaking to about in depth and in detail.
Formatting - Use tables/charts where possible, and be consistent with fonts, colours, and numbering and adhere to any page limits that have been set.
Plan an internal review - Make sure you have factored in time to internally review the tender submission you have put together. It is useful to have this reviewed by multiple team members to ensure your response is accurate, you have all the relevant information and meets the project scope and evaluation criteria.
Post-submission debrief tips
After submitting a tender and the tender process is finished, it is useful to request a debrief. These debriefs provide a learning opportunity and can provide you with valuable insight and areas of improvement. Having a debrief can be an opportunity to:
The reason why your tender was unsuccessful
The strengths and weaknesses in your submission
Clarify what was missing and how you did not meet the criteria
Who won and why they won
Agencies do not have to provide a debrief but generally when asked they are happy to.
Additional tips
Tender Process - If you are planning to prepare a tender submission it is important to understand the tendering process first. We have outlined the tender process and what to expect on our Tender Process resource page.
Registering your interest - Subscribing to any notices on GETS and registering your interest early will ensure you receive any tender document changes.
Pre-qualifications - These are a set of predetermined criteria that a supplier must meet before their tender submission is even considered. This includes things like level of insurance, health and safety certifications and financial position. Make sure you meet these before taking the time to submit a tender that you were never going to qualify for.
Weighting criteria - This should be considered with a fine-toothed comb as this is how suppliers will be scored and selected. If there is a 5% weighting vs 25% weighting then this is an indication that you should spend more time responding in detail to the 25% weighting as this holds a higher level of importance to the client.
Common pitfalls of a tender submission
When it comes to submitting your tender response there are some common pitfalls that you may run into. As a way to avoid these to improve your submission below are some key considerations for you to think about when you are going through the process.
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Impact:
The client may think that you are unable to deliver what they need and this will result in a low evaluation score.
Best Practice:
Make sure you understand the project scope of work and what needs to be delivered. This way you can speak to each requirement and how you will deliver accordingly. Make sure you tailor each response.
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Impact:
If your prices are too high your tender might not be considered and too low might look like you can’t deliver the quality.
Best Practice:
Be realistic about the scope of work and how much it will cost to deliver. Develop a good pricing model that balances the scope of the project and your desired profit margins.
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Impact:
Can miss the opportunity to showcase strengths, unique selling positions, and contributions to broader outcomes.
Best Practice:
Make sure you understand the criteria and speak to your ability to deliver and meet the criteria. The higher the weighing, the more detail the client will want to see in your response.
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Impact:
Clients want to see why you are the best supplier for the job and without evidence your proposal may not look as credible.
Best Practice:
Consider past projects and draw from similar experiences and challenges that were overcome.
Explain how past projects and experiences enable your business to deliver on key outcomes and requirements.
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Impact:
This can lead to you leaving out information or using acronyms that are not known.
Best Practice:
Assume the client doesn’t know. Always explain in full sentences and be clear in your responses to avoid misunderstandings or being perceived like you don’t know.
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Impact:
Generally results in an unsuccessful tender submission. The requirements and deadlines need to be followed carefully as this shows incompetence.
Best Practice:
Make yourself and your team aware of all the requirements and deadlines. Hold a meeting to ensure that everyone is aware and create a thorough schedule to stay accountable.
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Impact:
There can be time constraints to submitting tenders however rushing the proposal might result in incomplete or inaccurate information.
Best Practice:
Don't rush and take your time to carefully answer all the questions. Ensure you have demonstrated your values as a supplier. Submitting inaccurate data can undermine the credibility of your tender and business.
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Impact:
Presenting a poorly formatted proposal looks unprofessional and can diminish the perceived value of the tender (even if the content is strong).
Best Practice:
Include relevant branding, headings and ensure all documents are collated and are presented as requested. Do a grammar and spelling check too.