Bidding for beginners: How the tender process works
Tools & Resources
Key learnings
- Understanding the tender process – The tendering process involves multiple stages, including identifying opportunities, preparing documents, and submitting bids. Understanding each step is crucial for success.
- The importance of compliance and quality – Meeting all tender requirements, including compliance with guidelines and presenting a high-quality bid, significantly improves the chances of winning contracts.
- Effective bid writing matters – A well-structured, clear, and persuasive bid that highlights unique selling points and aligns with the buyer’s needs can set a business apart from competitors.
For many businesses, tendering for public sector work can be challenging and complex - but UMi partner, Executive Compass, has put together this ‘bidding for beginners’ guide to help you understand the process and maximise your chances of your bid being successful.
Bidding for beginners – why authorities use tendering
Public sector regulations dictate that all procurement procedures must be fair, open and transparent. All contracts above a certain threshold must be published in Contracts Finder and Find a Tender, ensuring fair and equitable access for potential bidders.
The tender procedure also allows the buyer to gather key information about prospective suppliers prior to engaging them in delivery of works or services – thereby minimising risk and supporting an informed decision and value for money obtained in procurement.
As such, the tender process is used across a variety of sectors and industries – including construction, health and social care, and facilities management such as cleaning, security, and mechanical and electrical services.
Consequently, it is important to learn the general rules and regulations which govern the tender processes – ensuring familiarity, increased success rates and, ultimately, a successful bid.
Minimum qualifying criteria
As part of the procurement procedure, the contracting authority may further specify minimum qualifying criteria that bidders must possess – or commit to obtaining – in order for their bid to be considered.
Some examples include:
- Registration with an industry-specific organisation, e.g. GasSafe, NICEIC/NAPIT or the Care Quality Commission.
- A minimum turnover threshold or consecutive years with positive balance sheets, demonstrating you are in good financial standing.
- Cybersecurity accreditations, including ISO 27001 or the government-backed Cyber Essentials or Cyber Essentials + schemes.
- Accreditations or certifications demonstrating competency in a certain area – for instance, ISO 9001 accreditation for your quality management system or certification with an SSIP-registered member scheme for health and safety.
It is important to note that any minimum qualifying criteria must be relevant or proportionate to the contract or framework agreement. As such, small and medium-sized businesses will not be unnecessarily precluded from bidding for contracts. Due consideration must be given for their inclusion in government supply chains as one of the key principles of the Procurement Act 2023.
Mandatory tender return documents
Other documents which need to be returned as part of the submission include:
- The Standard Selection Questionnaire (SQ), which requires bidders to provide standard company information, information on mandatory and discretionary exclusions, and pass/fail narrative responses such as contract examples.
- ‘Sign and return’ documents confirming the validity of the bid, such as the form of tender and certificate of non-collusion or non-canvassing.
- Pricing schedules or the schedule of rates, which will typically be fixed for a portion of the contract (or its entirety).
The most time-intensive and specialist element of the bid is typically the responses to quality questions, as outlined in the next section.
Tender quality questions or method statements
Normally, there will be a series of forward-facing quality questions or method statements requiring bidders to describe how they will deliver the contract to a high standard and in accordance with the contract specification.
The tender will then be evaluated on a quality/price split, underscoring the importance of detailed, persuasive and impactful responses. Topics will vary for each tender and are decided by the authority.
Some common quality topics include:
- Mobilisation: Authorities will want to know the successful bidder has a detailed plan for effectively mobilising the contract and ensuring a seamless delivery of works or services for every step, including timescales and task owners for each process, ensuring responsibility and oversight.
- Contract management and resourcing: By emphasising the skills, qualifications and experience of your proposed contract personnel, you will demonstrate you are ideally positioned to deliver against the scope of works. Assigning a contract or framework manager will also assure the authority of a dedicated point of contact, with responsibility for day-to-day management of works or services.
- Health and safety: Ensuring the safety and wellbeing of suppliers, directly employed personnel and members of the public is paramount for contracting authorities. A strong response will include specific detail on how potential hazards will be properly controlled and mitigated, in addition to documented measures for assessing new and evolving risks on site.
- Quality assurance and/or quality management: To ensure a consistently high-quality standard of delivery, the buyer may include a question around bidders’ regimens of audits, inspections and checks, in addition to how the quality of parts, materials and equipment will be assured. As part of the response, you should emphasise how your arrangements will support a first-time fix and avoid any snags or defects.
- Social value: Introduced through the Public Services (Social Value) Act 2012, bidders are normally required to describe how they can commit to creating social value through economic, social and environmental practices, ensuring the wider community benefits from their appointment. This can be using a prescribed set of measures, such as the National TOMs calculator, or bespoke measures based on the authority’s priority areas and commitments.
The evaluation criteria for the quality questions is rigorous. You need to balance technical information with a persuasive, evidence-based approach to delivering works – all whilst adhering to the wording of the question and contract specification.
Next Steps...
- Research suitable tenders – Identify relevant opportunities that align with your business capabilities and ensure you meet the eligibility criteria before starting the bidding process.
- Develop a bid strategy – Establish a structured approach for bid writing, including gathering necessary documents, assigning roles, and setting internal deadlines.
- Enhance your bid writing skills – Invest in training or seek professional guidance, ensuring clarity, compliance, and persuasiveness in submissions.
- Book a free 30-minute bid writing consultation with Executive Compass to get expert guidance tailored to your needs.