With a booming construction industry in the country, construction companies have exciting opportunities to build or grow their business to a large extent. The first step for securing new projects in this industry is to participate in construction tenders. This article aims to guide you through the entire process of looking for construction tenders, how to apply for construction tenders, the bidding process, fees and documentation required and much more.
What are construction tenders?
Construction tenders are formal invitations by private companies or government agencies for asking for bids from qualified contractors to execute a construction project. A tender would usually include the project details, the eligibility criteria for the bidder, submission details and the selection process.
Types of Construction Tenders
Open Tenders
These tenders promote open participation and are accessible to all interested contractors and anybody who fulfils the eligibility criteria can bid for them. They are the most common type of tenders by Government agencies, Private organisations and NGOs. They are published on their official websites and other tender aggregate websites like https://www.bidAssist.com
Limited Tenders
These tenders are limited to pre-qualified contractors who meet the specific criteria for the project. Also known as Selective Tendering, the tender document shortlists a few vendors beforehand and the offer is sent to only a few selected vendors. The purpose is simple – To improve the quality of bids and to save time while evaluating the bids. This process is used for projects that require very specific expertise and a good amount of experience in the field.
Single Tenders
These tenders are awarded to pre-selected contractors without open competition. Also known as Negotiation Tendering, this is the most common type of construction tenders released for construction and engineering works. They are meant for projects which require specialised services. The issuing company directly approaches a contractor and negotiates for the terms and cost of the project. Usually used for a single contractor, this process can be scaled up to three contractors.
Where can you find Construction Tenders?
There are several online and offline sources to look for construction tenders –
Government e-procurement Portals – CPPP (Central Public Procurement Portal) and state-specific portals by most states like WB, Maharashtra, Tamil Nadu, Madhya Pradesh, Karnataka, Rajasthan, Telangana, Odisha and others offer plenty of construction tenders.
Private Portals – There are tender aggregate websites like https://www.bidassist.com that publish construction tenders from all across the country (and even abroad) under one roof. Interested vendors can log on to BidAssist and look for tenders relevant to their business by using specific filters like location, cost, timeline of the project and so on. They also guide as to how to apply for construction tenders.
Newspapers and other Industry Publications – Both national as well as local newspapers publish construction tenders in their classified sections. One can also look for construction tenders in Industry Journals, Magazines and Publications.
Networking – Building relationships with the people concerned like the project owners, the companies and consultants can provide a better insight into the business and early access to opportunities.
How to Bid Smartly
As per CPPP, a tender document includes the following list of documents:
- Notice Inviting Tender
- Instructions for online bid submission
- Annexure-I (General Terms and Conditions)
- Annexure-II (Specification)
- Annexure-III (Technical Bid and Undertaking)
- Declaration
- Annexure-IV (Financial Bid)
A vendor must read the tender document carefully and only then invest his time and bet on the project. To learn how to apply for construction tenders, one must consider the following criteria before applying:
Eligibility – Read the criteria mentioned in the tender documents carefully and make sure that your company meets all qualifications for the construction project.
Technical Expertise – Demonstrate your technical expertise in the field and include your experience and available resources to execute the construction project in hand.
Financial Aspect – The submitted quote should be competitive and realistic based on detailed cost and estimated values.
Bid Security – Submission of the refundable guarantee (Earnest Money Deposit) is mandatory without which your bid will not be considered in the race. It is like a commitment to participate in the bidding process.
Make your Bid Stand Out
The bid submitted must be comprehensive showcasing all your expertise and strengths. It should meet all the criteria mentioned in the tender documents with respect to the given instructions, deadlines and required documentation for the construction project. The bid documents should be submitted well in time adhering to the specified method for submission.
Additional Points to Bid in Construction Tenders
- Track Record – One must maintain a good track record of doing quality construction work with timely completion of projects.
- Networking – We know how networking plays a key role in doing any business these days. Active networking with construction companies, project owners and consultants help in knowing their future plans and projects and gives easier access to them.
- Keep yourself up to date – It is important to keep a tab on all latest tenders by checking the portals regularly for recently released construction tenders.
- Assess your wins and failures – Self-assessment is very important in doing business. Construction is a dynamic field that requires one to be on toes to match up to the latest technologies. One must seek feedback to improve in future bids, especially when you have lost out on a tender.
- Seek Professional Assistance – One must consider seeking guidance from tendering experts for complex projects.
Conclusion
One must understand the construction business, the process of tendering, preparing a bid efficiently, staying up-to-date to take your business a notch higher in this competitive world of construction tenders in India. Thoroughness, attention to detail and a commitment to providing quality work are the key elements for winning bids and building your construction dreams.
You can reach out to the BidAssist’s customer service team at BidAssist support to know how to apply for construction tenders or for any assistance in securing a successful construction tender.