Tender & Negotiations: Managing and Reporting Practices in the Construction Sector

Depending on the tendering procedure, it is possible to predict all the stages, peculiarities, and outcomes of the tender. For example, negotiations, meetings, commenting, and other routine tasks can vary from one tendering type to another. At the same time, management, reviewing options, and reporting techniques can stay the same for both single and two-stage competitive tenders.

One more thing that is unchangeable for many contractors in the construction sector is using proper digital tools. If you are going to become a successful tenderer, it is high time to automate your bidding, costing, and estimating background. This way all the agreements, errors, changes, and comments should be recorded. But the best-matching cloud-based construction estimating software can automate these processes and turn them into paperless while improving the workflows.

The General Arrangements of the Construction Tender & Negotiations

When the pre-tender estimates are prepared, the comparison of the tenderer’s reports takes place. For example, a client who arranges a negotiation tendering process can invite a potential contractor for his/her project to the meeting to discuss some details or make some aspects clear. This is about the negotiated route with the two-way assessment properties and reaching an agreement by both parties.

The comparison tender is about selecting the best-matching performer with the help of reviewing various aspects (starting with costing and finishing with the portfolio). The initial price is discussed only by the client’s representatives. The customer does not ask tenderers about regular meetings and negotiations. All the provided data entries in the pre-tender estimate reports are recorded and fixed with no new proposals and submissions.

Comparison VS Negotiated Tenders

• Speaking about the strengths of the negotiated tenders, the optimal point and the total agreement between parties can be achieved.
• When the comparison tendering procedure only excludes all the participants who do not meet these or those requirements and cost expectations, the negotiated form of cooperation is about the best conditions for all the parties to agree and sign the contract.
• The weak spot of the comparison tender is that the tenderers with poorly formed or unsuitable estimates leave the competition between all the contractors. It is impossible to correct any pre-tender reports and find the solution together with the client.
• The disadvantage of the negotiated tender is the risk of the customer being fooled. Sometimes the client is influenced much by the contractors’ team (designers, architects, project managers). This way the profit can be decreased for the customer. The report of the potential performer can contain too high supply, labor, logistics, and other costs.

Recommendations for the Hassle-Free Tender Process

If you are a customer, check all the documents at the pre-tender stage. Ask a potential contractor to provide certifications, a list of hired subcontractors, some suppliers he/she cooperates with, permits, and other details. You can estimate the competence of your future performer on the very shore before diving into the water of the contracts, negotiations, and agreements.

Additionally, contractors should be ready to provide only clear information. 100% accurate estimates, well-thought statements, error-free reports, and other documents checked are required. The more understandable your reporting data is; the more likely you will get new clients and win the tender. Remember that your reports should highlight your main messages in the context of building techniques and construction philosophy in general (great quality, premium materials, experienced workers, etc.).

To sum up, there are many factors that have a direct impact on the quality of the tendering reports. For example, the most complex construction projects require specific contractual resolutions, alternative-time tenders, limited appointments (the 2^nd stage) of the contract, etc. It is possible to cope with all the formalities fast and risk-free, if you count on qualitative estimating, bidding, and costing software. This way many contractors skip imperfections in the reports and decrease human-factor errors in the data entries to a minimum with the help of reduced manual routine tasks.