A large tender is not always a good use of the bid team's time. The choice should weigh the chance of winning against the cost, cash and risk of delivering the work.
A busy tender list can use up the time your best opportunities need. Which bids deserve it?
Construction Bid Go-No-Go: Check The Fit
Review the client, funding and route to award. Check your trade skills, reach and the time available to price and build the work.
Test cash flow, bonds, design duties and insurance with the right team members. A possible future pipeline does not remove a loss on the work now offered.
Use A Score To Support Judgement
Bring views from estimating, site delivery and finance into the review. A score can help compare bids, but it must not hide a reason to stop.
Some risks need a reply or a priced allowance. Others may exceed the firm's limits. State which is which and who can approve the choice.
A score helps compare bids. Which hard limit would stop this one?
- Fit
Can the team deliver the scope and dates?
- Cash and risk
Can the firm carry the payment terms?
- Award prospect
Is there a credible route to winning?
Test resources and cash exposure before using award prospects to decide where to spend estimating time.
Record The Conditions For A Yes
List open points with a named owner and a date. If the answer changes the bid's value or risk, review the choice before more time is spent.
After award, compare the forecast margin with the bid basis. Use results from wins and losses to improve the next review, rather than judge success by the number of bids sent.
General guidance. Check your signed contract and the job facts. Get legal advice where needed.