In These Tough Times, How will YOU Win More Tenders in just 5 Steps
In These Tough Times, How Will YOU Win More Tenders in just 5 Steps?
There’s no denying these are indeed tough times. The UK is now in recession and the effect of the credit crunch is stifling developments. As budgets are cut and belts tightened, it’s becoming increasingly difficult for contractors to make the margins they need, whilst keeping their tenders competitive. The result is less tenders hitting your estimator’s desks and competition moving in from other markets. So what can you do to win more tenders?
1. Traditional Tendering
With a traditional tender, you may just want to enter your “winning” rates into the Bill of Quantities and hope that you have the magic bid. However, others moving into your market are bidding at cost less a %, hoping to make the difference up by driving subcontractors and material prices down.
This seems like a stressful way of keeping a company afloat, when there may be other opportunities.
2. Be Different – Value Engineer the Tender Design
All too often you must have looked at tender packages and perceived that they were over designed and there must be a better way of rationalizing that design. For instance:
• Have the designers made the best use of a cut and fill exercise
• Does the site investigation clearly define solutions in respect of foundations, excavations and contamination; or is it woolly
• Is there sufficient information to cost in the remediation work?
• Does the sub-structure design follow the SI recommendations?
• Does the structural frame look over egged, or can you see an alternative cost effective solution
3. Did you answer yes to any of these?
If so, you need to find and use a pro-active engineering consultancy, who can give you the tender winning solutions, quickly, on time and at no cost. At this stage you would need to agree fees with your consultant should you both be successful with the tender.
You are now ready to submit your tender documents as a two part package.
• The first part is the compliant tender completed in strict accordance with the instructions
• The second part is the alternative tender summarizing the savings that you can offer, but keep the details of these savings to yourself; otherwise you will lose the edge and find that the alternative design is re-tendered
If this alternative tender shows savings, without compromising the project, then it is a “Win- Win” for you and your clients and clearly shows that you are different from the pack.
4. What Paul Waite Associates can do for you?
For many years, we have been uncovering those hidden opportunities for profitable development. You see, unlike other engineering consultancies our leading-edge designs are all derived from our experienced talented teams using the tools of lean thinking, software and the latest techniques. This means we can squeeze extra margins out of projects – which in turn allows you to keep your tenders low, and increase your conversion ratio and more importantly these days, return a profit.
Our expertise is in helping find innovative ways to win that alternative tender that your competitors won’t see. The following are examples (over the last 12 months) of how we have worked with our clients to quickly find that alternative winning tender.
• Preston warehouse – No one had really thought about levels on this site. The tender design included removing 24,000m3 of earthworks and the creation of retaining walls. When we looked at this package, we saw the opportunity of a cut and fill exercise. We checked with the planners to test out lifting the building and although it was not an issue, it was a risk to take on board before building works commenced. (In the end, we got a formal approval). This exercise optimized earthwork removal, with lower and more economical retaining walls. We provided a fill specification for the existing material and put forward ring beam foundations and a ground supported slab on a lime stabilized capping layer. The saving was £350K on a £1.7m contract.
• Yorkshire Housing Scheme – Under a formal tender bid, we managed to re-design the foundations from piled rafts to a combination of rafts, trench fill and strips footings. In addition, we rationalised the geo-technical works to limit grouting and remediation to show a £225K saving on a £5m contract.
• London Office -This was for a two storey, 18m wide office block, sat on ground more than adequate for simple pad foundations. However, the tender design was piled foundation (5 piles on the inner columns) a 350mm suspended floor slab, with double reinforcement and an unbelievable heavy steel frame. Our contractor client cost this design out at £5m. After an afternoons work, we re-jigged the design which panned out into a £300,000 saving and a tender win.
5. What next – Contact Paul Waite Associates (Tel 01535 633350)
Thinking outside the box may have become a little clichéd these days – but when it’s done right, it’s still as great as it ever was! And at Paul Waite Associates it’s what we do best.
If you think that you need help on a tender package, to give you that edge, or you just want help in clarifying an issue then don’t hesitate in calling either Paul Waite (paulw@pwaite.co.uk) or Tim Davis (timd@pwaite.co.uk). We may be able to give you that quick fix.
If you need more detailed help on your tender, then we can take it further by
• Calling at your office to discuss the project and discuss where we can make those savings for you
• Alternatively, you can email us the drawings and we can appraise them within our office
In both cases, we will quickly provide you with sufficient details, at no cost to yourselves, because we are prepared to share the risk with you and we will provide you with a fixed price fee cost to build into your tender. These details will enable you to price up the re-design with confidence. And, if you need our post tender backup to clinch the deal, then we are willing to go along to those client meetings.
Give us a call and turn a potential crisis into an opportunity.
