If you’re unsure about bidding, make the most of your chances by avoiding common mistakes and creating a strategy that matches your strengths.
Key strategies for evaluating bid opportunities:
Tender Requirements: Review all documents carefully
Cost-Benefit Analysis: Weigh benefits against costs
Resources and Expertise: Ensure you have the necessary resources and expertise
Market Research: Assess competition and chances of success
Risk Assessment: Identify and evaluate potential risks
Bidding Strategy: Align with your business goals
Contract Terms: Review payment and conditions; consider reputational impact. (Note: The New Procurement Act 2023 allows for contract KPIs and a list of unfit suppliers to be published)
Stakeholder Input: Consult and collaborate with all stakeholders.
Common Risks:
Financial Risks: Underestimating costs or overestimating profits
Resource Availability: Insufficient resources or expertise to fulfil the contract
Compliance Risks: Failing to meet legal or regulatory requirements
Reputation Risks: Potential damage if the project fails or you withdraw
Contractual Risks: Unfavorable terms, such as payment schedules or penalties
Market Risks: Changes in market conditions
Competition: Strong competition lowering your chances
Client Reliability: Unreliable clients or those with a history of disputes
Scope Creep: Expanding project requirements leading to increased costs and time
Technical Risks: Potential technical challenges or failures.