If you’re new to the construction industry, the term ‘construction tender’ may sound a bit confusing. We work with countless trade and construction companies who are often new to the tendering process or not able to write successful bids themselves due to lack of experience, expertise or time.
This guide is written specifically for these clients, to understand what a construction tender is, how the construction bidding process works, and why tenders are a key part of how buildings, roads, schools, hospitals and countless other construction projects begin.
Defining Construction Tenders
A construction tender is a formal offer to carry out work on a building or civil engineering project, often submitted in response to a request from a client or buyer. The tender usually includes pricing, quality questions, technical information, and timelines, and it often requires evidence of previous experience and project capability.
Construction tenders are a core part of the competitive bidding process. Multiple companies are invited to submit bids for the same project, and the client evaluates which contractors offer the best value and appear most suitable for the work.
A key thing to remember here, is that the best value doesn’t always mean the lowest price. Although buyers are always looking to minimise expenditure, they will balance cost, quality, risk, experience and social value offers as part of the overarching commitment to value.
Put VERY simply, a construction tender is the proposal demonstrating why you should be the one to build or deliver a specific job.
Why Do Construction Tenders Exist?
Construction tenders exist to ensure fairness, transparency and value in how projects are awarded. This is particularly important in public sector construction projects (e.g. councils, government departments, NHS trusts and schools), where taxpayer money is being spent.
A structured construction tendering process will help to:
- Prevent corruption or favouritism.
- Compare suppliers fairly and equally.
- Drive quality and innovation.
- Keep costs under control.
Even in the private sector, the tendering process is common when large or complex projects are involved. It helps clients to select partners with confidence and clarity, using more than just word-of-mouth relationships.
What Types of Work are Tendered?
The construction industry is extremely diverse, so the scope of works involved in a tender can vary HUGELY.
Tenders may be issued for:
- General building (new builds, refurbishments, extensions).
- Civil engineering (roads, bridges, drainage, flood defence).
- Specialist trades (electrical, roofing, steelwork, joinery).
- Groundworks and demolitions.
- Fit-out and finishing.
- Design and build contracts.
- Maintenance and facilities management.
- Construction Framework Agreements (these are pre-approved supplier lists covering multiple future projects)
Who Issues Construction Tenders?
Construction tenders are issued by clients or ‘buyers’, who need construction work carried out. This is a huge bracket of clientele, but may include:
- Local authorities (e.g. councils, housing associations).
- Government departments (e.g. Department for Education).
- Developers and property owners.
- Large contractors looking for subcontractor packages.
- Educational trusts and academies.
- Health and care providers.
- Transport authorities (e.g. Network Rail, National Highways, etc).
Types of Tendering Methods in Construction
Understanding the construction tendering process means knowing the different methods clients may use:
Open Tendering
Anyone qualified can apply. The tender notice is made public, and any interested contractor can submit a bid. This is common in the public sector and promotes transparency but often results in high competition.
Restricted Tendering
Clients create a shortlist (often through a PQQ or Selection Questionnaire) and invite only those suppliers to tender. This limits the number of bidders and streamlines evaluation.
Negotiated Tendering
The client invites one or more suppliers to negotiate the terms directly, This is less common, but can be useful for complex projects where a strong existing relationship or specialist input is required.
Framework Agreements
These are long-term agreements with multiple suppliers to deliver work as needed over several years. Once on the framework, suppliers may be offered work directly or through internal mini-competitions.
Key Construction Tendering Stages
Step 1: Tender Opportunity Published
The client will issue a notice or advert, explaining the project and inviting bids. In the UK public sector, this is usually published on platforms like Contracts Finder or Find A Tender.
Step 2: Documents Are Issued
The buyer releases detailed tender documents. Typically this includes:
- Scope of Works/Specification.
- Drawings or Plans.
- Pricing Documents (e.g. bills of quantities).
- Evaluation Criteria.
- Submission Instructions.
- Selection Questionnaire (SQ) – completed either prior to or as part of the tender.
You may also see documents like the Pre-Qualification Questionnaire (PQQ) or sometimes (tender dependent) the Selection Questionnaire (SQ), which will be completed before progressing to the full tender.
Step 3: Clarification Period
After sifting through the documents in full, suppliers are given the opportunity clarify any documents or specific questions that they do not understand. The answers are shared with all bidders to maintain fairness.
Step 4: Submission of Bids
The bid must be submitted in full and in line with the portal-specific regulations. Late entries are typically disqualified unless extensions are previously agreed and should your bid be incomplete, it may also risk disqualification.
Step 5: Evaluation
Each bid will be evaluated according to the relevant criteria. For construction tenders, this criteria typically includes:
- Pricing.
- Technical quality.
- Experience and references.
- Programme and methodology.
- Social value commitments.
- Health and safety credentials.
- Environmental sustainability.
Each section is scored and total marks will determine the winner. Depending on the buyer, you may receive feedback, especially for public sector construction tenders, allowing you to understand why your bid was successful or unsuccessful, where you scored highly, and what areas you can improve on for future construction bids.
Step 6: Contract Award
The winning supplier is informed and unsuccessful bidders are notified. In public sector tenders, there is usually a standstill period (often approximately 10 days), before the final award.
Don’t Know Where to Start with Construction Tenders?
Bidding in the construction sector can be longwinded and complex, especially when navigating PQQs, ITTs and DPS’! But it can be made easier with an organised, thorough approach. We’ve written an article on what usually causes construction bids to fail here.
While writing your own construction bid 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!
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