Success in competitive tendering is not only about the price.
In fact, price is usually the last consideration.
When a buyer takes the decision on which contractor to purchase goods or services from, there are a number of things he/she is looking out for.
Three of such criteria for success are:
1. Technical Capacity
This is a contractor’s proven expertise in delivering the product/service; as well as availability of the right people, tools and equipment to perform the work successfully.
2. Professional Capacity
This includes professional qualifications and accreditations from relevant bodies/authorities; for both the contractor as a whole and for its key personnel who will be involved in the work.
3. Financial Capacity
Depending on the nature of the work, the buyer may place a minimum financial capacity required to achieve the objectives of the contract; usually evidenced in the contractor’s turnover over a period of time.
These are universal criteria that apply to all tenders regardless of line of business. When you are developing your next bid document, take some time to ensure that these three criteria are properly addressed.
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