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Understanding the important criteria for choosing the right tender Other Services

17 Sep 2019| Posted by Morris | In Other Services

When it comes to the evaluation process of the tenders, a lot of weightage is given to the factors which are already emphasized by the organization in the initial stages. But when it comes to private sectors, they usually do not disclose the merits for finalizing or rejecting the tenders. 

Tender evaluation process is usually a two-step process. The first steps involve in accessing the technical merits of the bidders, while the second stage is usually concerned with the financial aspect of the entire contract. It is also important to note that the government sectors, which are always under immense scrutiny, are unlikely to award any tender solely based on the low price of the bidders.

In this post, we will take a brief look at some of the tender evaluation criteria which may not be stated explicitly.

  1. Budget: - Private or government; no organization explicitly declare budget as its key merit for awarding the tender to anyone. However, tenders filed with too high charges, i.e. budget which appears significantly out of the norm, are usually rejected.

    But that does not mean that tenders with the lowest prices are going to be preferred. High cost can easily be overlooked if the organization has reputed experience in the concerned niche. Experience, man power and verifiable past achievements, rewards go a long way in winning the tender.

    If we have to think of the examples, then there are numerous ways to justify your significantly higher budget. Things like transportation charges, dismantling and assembling charges and installation charges, labor charges usually involves a significant amount of skills and expertise. And therefore, such factors does allow one to quote a higher budget.

    An important tip:- It is usually a good idea to also include the maintenance charges of the commodities for a period of lifetime.
  2.  Accreditations and certifications: - When it comes to acquiring a tender, especially of a government, accreditations and certifications play a huge role. Now these may not be the pre-requisites at all for filing the tender, however, when the task requires a significant amount of technical and administrative skills, accreditations and certifications play a paramount role in convincing the committee to award you the tender.
  3. References: - If you can quote references along with accreditations and certifications, then you are bound to get a considerable attention from the tender committee.

    However, care must be taken to quote references which have a respectable standing in the particular industry, of which you are eyeing the tender.
  4. Past achievements: - Any significant achievement in the relevant industry should be mentioned thoroughly in the tender filling application. This helps to win the confidence of the committee.
  5. Clearance certificate from relevant authorities: - While the most important clearance certificate is obviously of the income tax, if the project demands (or likely to demand) a clearance certificate, it would be a good idea to submit it in the envelope.
  6. Risk Assessment: - Things rarely perfectly as per planning. Deviations from the objectives do happen in the real world. The clause of Force majeure might be included in the contract but if you want to have a significant chance of winning the contract, there should be a backup plan to execute the remaining work, in case the situation demands it.

    It is important to understand that the organization which lays out the tender is subjected to immense scrutiny if the results fall anywhere below the exceptional quality. And this is why risk adjustment is a significant factor for the organizations in tender evaluation criteria.
  7. Safety Factors: - When it comes to safety factors involved during the entire duration of the work, a lot of it is usually not state explicitly. The bidders who show stupendous measures for the safety factors are heavily considered by the tender evaluation team.

Be assured that competitive tendering usually does not work these days

If you are new to tender business, then you have assumptions about quoting low prices in order to win the tender. There are several factors which indicate that competitive tendering does not work these days. Competitive tendering compels the bidder to quote down the lowest prices. Now in order to extract the profit margins, a staggering compromise has to be done from the likes of quality of materials, labor quality, technical support, repair work and maintenance. Plus, the more scrutiny the organization is likely to face, the lesser they are eager to call for competitive tendering.

MEAT: - “Most economically advantageous Tender” is a term used to set aside the parameter of “Budget” as the key factor in awarding tender to any bidder. It consists a list of factors, which must be given relative weightage by the evaluators. These key factors may or may not be listed down explicitly by the organization, however, it is important for the bidder to know them. The factors include the likes of quality, accessibility, technical merits (and demerits), safety factors, social characteristics, environmental characteristics, innovative characteristics. However, the most important factor of all them is the timely delivery of the service or goods, or whatever the main goal listed in the tender.

Pre-requisites and the mandatory requirement

As mentioned earlier, the private organizations usually do not involve a specific set of pre-requisites and mandatory conditions. However, undisclosed preferences are always involved in the evaluation of tender. In our experience, we have found that having over-qualifications and over skills in both technical as well as administrative scenarios helps significantly in winning the contract.

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