Is this tender worth bidding for?

A tender can look attractive and still be the wrong opportunity for your business. Before you begin writing, take time to understand the work, the buyer and the effort involved.

Deciding not to bid can be a sensible commercial decision. The aim is to focus your resources where you can put forward a credible response and deliver a worthwhile contract.

First, understand what is being bought

Read the tender documents, including the specification, evaluation criteria, submission instructions and proposed contract. Do not make a decision from the headline value alone.

Note the deadline, any conditions you must meet, and anything you need to clarify. If a requirement is unclear, use the buyer’s stated clarification process rather than guessing.

Ask five practical questions

1. Does the work fit our business?

Can you deliver the required service or product? Check the geography, capacity, qualifications and relevant experience. Separate what you can demonstrate today from what you hope to develop later.

2. Do we understand the buyer’s needs?

Look for the problem the buyer is trying to solve. Can you explain how your approach addresses it, using the information available in the tender? A response needs more than a general description of how good your company is.

3. Can we support our answers with evidence?

Identify relevant examples, people, processes and results. If important evidence is missing, decide whether you can obtain it in time. A confident statement is not a substitute for proof.

4. Would the contract be worthwhile to win?

Consider margin, payment terms, delivery costs, mobilisation and risk. Bring in the people responsible for pricing and delivery. An attractive contract value does not tell you whether the work is commercially sensible.

5. Can we give the response enough time?

Work backwards from the submission deadline. Allow time to understand the documents, gather input, write, price, review and submit. Check that the people you need are actually available.

Make the decision explicit

Record a short decision: bid, do not bid, or bid if specific conditions are met. Note the reasons, the main risks, and who will resolve any outstanding conditions.

If you use a scoring sheet, keep it as an aid to discussion. A high total should never hide a requirement you cannot meet or a serious commercial concern.

A useful first step

Before anyone starts drafting, arrange a short conversation with the people responsible for delivery, pricing and the response. Work through the five questions together and record what you decide.

If the opportunity looks promising but you are unsure about the commitment, a one-hour consultation can help you work through it.