What Are The Things To Be Considered Before Submitting A Tender Document? Get Legal Advice

Tendering is a fiercely competitive procedure, where many businesses provide their services and also call for bid for the projects and contracts they look for. One example may be government tender requests that attract businesses, irrespective of their sizes, from a broad range of industrial sectors, like office supplies, or major construction projects.

The businesses write a description in their submitted bids. In the description, it is mentioned how the companies will satisfy all the project requirements through their provided services and the goods they will supply as per request. In addition, they will have to mention a competitive price for the whole work. As there is a well-defined structure and planning associated with the tender process, it allows all the businesses to take most of the advantages from all the available opportunities. A business can also build and manage its own tender process that will allow it to use the benefits of sustainable business savings.

Types Of Tender

There are usually 4 types of tender, which we discuss here.

• Open Tender

Both government and private sectors use the process of open tendering that is the main tendering procedure. Under this tendering process, anyone is allowed to submit a tender to offer the required services and supply the requested goods. Besides, every organization gets the equal opportunity to submit a tender. But at the same time, it gives rise to greatest competition between the businesses. Open tendering is most commonly used construction and engineering industry.

• Selective Tender

In case of selective tenders, suppliers are allowed to submit tenders only when they are invited. Invitations are sent to those suppliers who are known in the market for their track record that can meet the contract requirements like its size, complexities and nature. As only a much selected number of suppliers get this tendering, clients feel more confident about the fulfillment of their requirements. Selective tendering is suitable for complex or specialist contracts, but may not be appropriate for small-sized suppliers or those people who eye on establishing themselves in the new market.

• Negotiated Tender

Construction and engineering industries extensively used negotiated tenders. For specialist contracts or for widening the scope of a current contract, negotiating with just one supplier can be enough. The benefits of negotiated tender are that the costs can be substantially reduced and it also allows involvement of the contractor at an early stage. Contractor is treated as an integral part of the project team and at each phase of the work, thus making the communication and information flow much better.

• Single-Stage Tender And Two-Stage Tender

When all the information important for calculating a realistic price is available at the time of tender commencement, single-stage tendering is applied. On the other hand, two-stage tendering is used to permit the early supplier appointment, before the completion of all the data needed to offer a fixed price. In the first stage, an agreement is reached for limited appointment that allows start of work and in the second stage, negotiations for fixed price are conducted for the contract.

What Factors Should You Consider Before Entering The Tender Process?

With planned preparation and a better understanding of the subject, it becomes relatively easier for the businesses to manage bids and evaluate the tender process. Qualified tender lawyers in Perth can help you in this regard.

There are 5 factors that you should consider before you submit a tender document.

• Project Requirements: Here, you must give a thorough reading to the bid documents first. Then, you have to focus on an in-depth analysis. After that, you should take ample time to see how much scope the project will offer and what services they will require from you. Once you know all these, now you should think whether your business will be able to provide the exact services the project needs.
• Project Expenses: In the next stage, you have to calculate the project costs. You should see how much will be the business costs to fulfil the project requirements. Along with it, you should also see whether the profit margin after the project completion will justify your involvement as a tender or not.
• Manpower Capacity: A project will not get successfully completed without enough manpower. It is to be checked that whether you will need to recruit more manpower to ease the work load.
• Fit Of Business Capacity: As the owner of the business, it is your responsibility to see if your business has the specific qualifications, expertise and accreditations required by the buyer. The tender bid will not be possible without meeting these requirements.
• Bid Management Team: Every business should have a professional bid management team. Otherwise, writing a successful bid for the tender will be difficult.

Where To Find Lawyers?

For qualified tender lawyers, you can contact a firm like Property Lawyers Perth. Their lawyers have vast experience in the field. They can even find you property lawyers in WA as well as the best property lawyers in Perth.