Growth, Hints and tips
Top 5 reasons why you might be missing out on construction tenders
Posted on by Katie Hook
Estimated read time: 4 mins
There are few things more frustrating than not winning a tender for a construction project, particularly if you thought it had met all the criteria. Simple mistakes, like pitching at the wrong level, can cost your business thousands of pounds in lost work, so what can you do to increase your chance of success?
Get your tender right and there’s no reason why even small building firms can’t deliver larger projects for the government and global companies. To get started, we’ve highlighted five areas where a few simple improvements can help you secure the construction contracts you want.
Know the business
It might be obvious, but research the company to see if you have the right skills and resources for the job. After all, if you’re a two-person construction team based in Newcastle, there’s no point going for a major infrastructure project in London. Blanket bidding won’t do you any favours; it’s far better to carefully select opportunities based on your capabilities and expertise.
Do your homework
When you’ve chosen a suitable construction contract, study the tender documents so you know exactly what information is needed, including certificates and financial records. Since tenders can be highly complex, it’s always worth contacting the company if you’re unsure about any of the questions.
While tenders exist to ensure you are suitable to deliver a project, it’s important to know who you are going to work for as well. Tools such as Experian’s Single Company Credit Check allow you to purchase a one-off credit report on another company, making it a great way to check the payment history and reliability of the business you want to work with.
Putting in that extra time and completing your due diligence will allow you to reap the benefits in the long run, and reduce the likelihood of receiving slow payments which can affect both your cash flow and the pace a project moves at.
Stay on top of your finances
If your business has a low credit score, it can prevent you from getting better rates on the loans you would need to deliver a project. Continually monitoring your score with services such as Experian’s My Business Profile, will give you an insight into how well your business is performing and what you can do to improve it.
Invest in your application
You know your business inside out – but are you really the best person to write the tender? Your skills may lie in electrical, plumbing, housebuilding, heating or crane driving but writing may not be your forte. Sometimes it’s worth investing in the services of a professional writer, who can provide structured, succinct and persuasive answers to the questions. Similarly, you may consider employing a graphic designer to ensure the document looks clean and is easy-to-read.
Timing is everything
Submitting your application before the due date is the best way to reassure potential clients that you can work to deadlines – something that is vital in construction. Leave plenty of time to write the tender and gather the relevant documents to avoid a last-minute rush.