Bid / No Bid Tag

Within the cornerstone Article – “Tender Process” which spells out a sequence of the process.  The Client has sent out a “Request For Tender: (RFT), The builder has done some type of review and during this meeting.  The formalize the process it is often good to place on paper why or why not you tender on the project. 

This formal process is often called a Bid / No Bid form.  The form is filled in and at the end of the process – spits out a number to give a realistic probability if the organization can compete. This form asks question including but not limited to the following: 

• The complexity of the project?
• Have we history of completing similar works?
• Any history with the client and /or the region?
• Resources & staffing?
• Capability to service the project if won?
• Who is our competitor? 
• List of risks? 
• Have we got any market advantages etc? 
  
• Are there any political advantages?
• How can We win the project? 
• Are there any other tenders approaching that have a better chance of winning with our resources available?
• Etc? 

The thing with this form – the number indicates a less than desirable probability to tender however what it does do – it formalizes the need for resourcing and often helps the management to walk away from tendering project where you haven’t got a chance of winning and you don’t need to spend money of a bad bet.  But even though the form may spit out a bad number – often management will decide that the project is worth the bet. 

Your senior management is gambling on their estimators… It is a huge compliment in your ability and a large responsibility.