Responding to a construction tender will look different for you if you’re a subcontractor, so it’s important to fully understand the construction bidding process to ensure that you are giving yourself the best chances of winning.
You’re often bidding to be part of a larger construction project team rather than leading the contract yourself – which means you need to be even more strategic in how you approach the process.
As a specialist construction subcontractor (e.g. electrical, plumbing, HVAC, concrete, steelwork, etc), you will be up against larger, general contractors and building contractors that are likely going for multiple bids, so you need to make sure that you are submitting a compliant, persuasive bid that showcases why you’re the right choice.
Below is a step-by-step guide on how to respond to a construction tender as a subcontractor.
Understanding the Scope of Work Thoroughly
Before you do anything else, you need to conduct a full review of all tender documents. By doing so, you can ensure that:
a) You understand the contract scope and specification.
b) You are compliant with the buyer’s requirements.
c) You are aware of what you need to complete and submit.
Everything you need to know will be written in the tender documents. Specific details – such as timelines, construction project objectives, necessary licenses, geographical location, material requirements – will tell you whether the construction contract is something that you can successfully carry out. Ignoring the tender documents might mean bidding for a contract that you’re not suitable for.
It’s important to read the tender documents as early as possible – because if you have a clarification question, you might miss the deadline if you wait too long.
Assessing Your Suitability for the Construction Contract
Bidding for a construction contract that isn’t suitable for you will just lead to wasted time, resources and effort. Before you start the tender response process, ask yourself:
- Do you have the workforce and equipment to take this on?
- Can you meet the timeline?
- Can your team meet the schedule and sequencing required by the main contractor?
- Are you licensed and insured for this type of work?
- Is the project location within your range?
- Is this contract going to be financially beneficial for you?
Preparing Your Construction Tender Submission
When responding to a construction tender, you will have to complete and submit various documents that should highlight your experience, construction project management approach, capabilities, and compliance with the tender requirements.
A typical tender submission will include:
- Company Profile
Information on your company, key personnel within your team, years of experience, relevant past construction projects completed.
- Pricing Schedule
A full breakdown of costs for the scope of work outlined in the specification, including materials, labour, overheads, etc.
It should be both competitive and profitable (for you) – so it’s important to spend time considering the pricing you can offer.
- Case Studies
Relevant construction projects that you have successfully carried out, that detail works completed, assigned personnel, and testimonials/references.
If allowed, photographs can effectively demonstrate the quality of work you are capable of and should be included.
- Licenses and Certifications
Proof of trade qualifications, insurance, construction safety certifications, and relevant industry accreditations.
If you don’t hold a license/certification that they ask for, it might be worth sending a clarification question, to understand if exceptions or alternatives are acceptable.
- Health and Safety Documents
Relevant policies, risk assessments and method statements – that are specific to the contract you are bidding for.
You may be invited to conduct a site visit, which will allow you to fully understand the conditions and ensure all potential risks are properly addressed.
Some ITTs will actually contain a checklist of everything you need to submit, which is worth looking for to make the process easier.
Submitting Your Construction Bid
Before submitting your bid, doublecheck you have everything that the buyer or main contractor is asking for. Missing elements (such as signatures, documents, policies, requested evidence such as insurances) may lead to the automatic disqualification of your bid.
Once submitted, note down the award date, and keep an eye out for any communication from the buyer. If you do happen to be unsuccessful, maintain records of the feedback provided, so that you can avoid making the same mistakes on the next bid.
Common Issues Construction Subcontractors Face
There are several issues that a subcontractor could face when bidding for a contract, such as:
- Tight Deadlines
Don’t leave it until the last minute, or you risk submitting a tender that is incomplete or doesn’t properly showcase your value.
Solution? Aim to submit your tender at least a few days before the deadline, to account for any technical issues, or last-minute delays.
- Competition with Larger Firms
Bidding against larger, more experienced construction firms can be disheartening, especially if you are a newer business with minimal experience.
Solution? You can stand out by effectively displaying your specialised construction expertise and ability to deliver high-quality construction works. Mention your USPs, added value, personnel, etc.
- Pressures to Undercut Prices
You might feel compelled to lower your prices to give yourself the best chance of winning, but this might lead to securing a contract that isn’t financially viable.
Solution? Price your bid realistically. Clients often prefer the most cost-effective construction services, not necessarily the cheapest.
- Communication Delays
Difficulty in getting timely responses or clarifications from the general contractor or project manager might delay the bidding process for you.
Solution? If you’re waiting on site plans, clarifications or final scopes, build in extra time and follow up proactively.
- Missed Updates
Updates from the buyer will usually be posted through the portal, so it’s important to regularly check for any changes in deadlines, tender documents, etc.
Solution? Check the portal daily and enable email notifications if available. Assign someone within your team to monitor updates and maintain a checklist to track any changes.
Overwhelmed with Construction Tenders?
Bidding in the construction sector can be longwinded and complex, but it can be made easier with an organised, thorough approach.
While it can be done internally, professional bid writing companies like us at Bid Writing Service can significantly boost your chances of success through expert bid writing and end-to-end guidance throughout the entire bidding process.
Have a construction tender submission coming up? Why not utilise our expert construction tender writers? Contact us at michael.baron@bidwritingservice.com or lauren.moorhouse@bidwritingservice.com to discuss your needs, or, fill out the form below!
Request a Callback
"*" indicates required fields