5 common construction tendering mistakes (and how to fix them)
There’s one thing that’s often overlooked by subbies when it comes to improving bid-winning performance.
We’re talking about internal tendering processes and procedures. Believe it or not, if they aren’t up to scratch, you could be missing out on a lot of new business.
Consider these questions:
- Do you (or your customers) worry about the accuracy of your pricing?
- Do you and your estimating and surveying teams spend a lot of time on mundane admin tasks?
- Do you find it difficult to get a clear view of project costs?
If you answered ‘yes’ to any of these, there’s a good chance the tips in this blog post will be valuable. Follow our action points, and you’ll be well on your way to running a well-oiled tendering process and pricing more jobs than ever before.
So, here are five common mistakes that subcontractors make when tendering for new business (and what to do to fix them).
1. Duplicating work between teams
The problem
When it comes to tendering, there are many tried-and-tested processes that help subcontractors get the job done. Perhaps you’re running everything from what you think is a well-honed Excel spreadsheet, for example?
But is it really as well-honed as you think? Dig a little deeper and often you’ll find hidden errors in your numbers – errors that too often go unnoticed.
What’s more, these home-grown methods are often used and loved by just one team in the organisation. When another team needs sight of that information, they end up pulling it out into their own, equally well-honed spreadsheet.
Not the most efficient or safest way of working, we’re sure you’ll agree.
The solution
For maximum efficiency, everyone should be working from the same system and the same datasets. Why should a surveyor have to go hunting for the information they need when a project is handed to them? Why should they have to create all the documentation from scratch?
If everyone works from the same centralised system, duplication of effort can be eliminated, meaning work gets done easier, faster and much more cost effectively.
2. Letting admin take over
The problem
Another symptom of the spreadsheet love-in is the amount of unavoidable manual data entry with that way of working. Estimators and surveyors go to work every day to estimate and survey, not enter endless data into spreadsheets or spend vast amounts of time filling out paperwork.
But that’s exactly what many hours are spent doing. And ultimately, it’s to the detriment of the project, as the true expertise of the team is wasted on these mundane tasks.
The solution
It’s been said before, and we’ll say it again: why have a human do something a machine can do better and faster? And that goes for admin work in the tendering process.
Software systems that automate administration tasks can save you hundreds of hours a year, meaning you’ll be able to tender for more projects with that recouped time. Your team will once again have the freedom to do the job they’re paid to do, and they’ll be happier for it, too.
3. Being prone to errors and inaccuracies
The problem
When manual data entry rules the roost, errors and inaccuracies are inevitable. But these can be costly to the business, and even result in lost work reputational damage. You may even end up winning work you wish you hadn’t, because you thought the numbers added up – but in truth, they don’t.
No estimator or surveyor worth their salt wants to see errors creeping into their estimates and cost plans. The good news is you don’t have to put up with it anymore.
The solution
Once again, automation comes to the rescue. Some software systems (ConQuest being one, but we’re biased of course) can automate huge chunks of your data entry processes, effectively eliminating the risk of human error.
With these systems in place, you’ll never again need to worry about inaccurate data jeopardising your chance of winning a project.
4. Not streamlining the handover from estimator to surveyor
The problem
When a surveyor comes to create his or her valuations, the process of sifting through the estimator’s comparison sheets, trade mark-ups, resource analysis and supplier quotes can be like wading through treacle.
Finding all the information needed can be a major headache in its own right.
The solution
When you use dedicated tendering software, the system will pull through all the relevant data for you. What’s more, each month your system should automatically revise the budget costs based on re-measured and amended internal valuations.
5. Having a limited view of the numbers
The problem
For finance teams, having a clear and unfiltered view of actual project costs is the Holy Grail to strive for. Too often finance people spend large chunks of their time trying to get to the bottom of costs and the cost to complete, and end up duplicating effort to gather that data, too.
The solution
A centralised platform, where all project data is stored and shared among the team, can be incredibly empowering for construction finance departments. Data will be much more accessible, and with everyone working from the same system, you’ll get complete transparency on actual project costs.
Conclusion
Every subcontractor has its own way of managing the tendering process. Whether you’re using spreadsheets or even paper-based systems, there will always be inaccuracies and inefficiencies to deal with.
So, maybe now is a good time to audit your tendering processes and procedures and really think whether there’s a better way to do things – you’ll be surprised how much time you could save (and extra work you could bid for).
