This article was originally published to the Acuite blog on February 05, 2016.
History hasn’t always favoured competitive tendering. Analysts, statisticians, and consultants have often viewed with narrowed eyes – squinting in distrust at the potential havoc it may wreak on the commercial market. Their suspicion is well-founded, with the process’ entire premise proving shaky.
To secure projects, construction companies wage a war of ever-growing promises: trying to win trust by creating an image of efficiency and low rates. In many cases, this image doesn’t always shift into a reality. Instead, estimates are often wrong and supply chain / procurement cost change during the course of the project, leading to budget-shattering consequences for teams and clients alike. Similarly, poor and or incomplete documentation from the client at the tender process results in a similar outcome, eternal wars against variations. Competitive tendering fails.
Acuite recognises that this process has a rather bleak past. We believe, however, that its future can be improved – if construction companies and clients are both willing to embrace transparent methodologies.
What is Transparency?
To ensure the success – and validity – of competitive tendering, companies must approach each project with transparency. This translates to a full disclosure of build methodologies and unit pricing, but equally important key data such as KPI analyses, benchmark comparisons, and case studies. Present this information with every bid to establish credibility and inspire engagement with your prospective client.
Proof of Value: Success Indicators
Success isn’t a singular event. It’s instead a series of little moments, all culminating in strong margins and stronger reputations. When presenting a competitive tender, companies must highlight these moments – offering potential clients proof of their track record and performance against 5 KPIs – Time, Cost, Quality, Health and Safety and Relationships.
Acuite’s Construction Intelligence is a disruptive cloud technology for construction management, offering instant tracking of critical metrics on both portfolio and project levels. These metrics – which include performance against time, cost, quality, HSE ratios, and subcontractor and consultant performance – are essential. They allow companies to effortlessly monitor every process, identifying strengths, risks, and opportunities. This allows teams to respond to situations with precision, with real-time technological analysis highlighting ways to improve.
These improvements will sway potential clients, showcasing faster-than-ever risk and opportunity analysis, proactive time management, quality assurance, and health-and-safety performance.
Proof of Standards: Industry Benchmarks
Expectations are high in the construction world. Meeting – and exceeding – these expectations is crucial, therefore, when attempting competitive tendering. Showcasing compliance capabilities strengthens every bid:
- How long does it take you to assess, address, and resolve defects?
- How many Health and Safety incidents occur and how promptly and effectively they are managed?
- How many and how often proactive Health and Safety achievements, such as hazard observations and near misses have been reported?
- How do project deliverables compare with industry benchmarks?
- How does the company’s subcontractor and consultant performance compare with others?
Construction Intelligence quickly compiles all benchmark data into a smart and intuitive dashboard, allowing for real-time examinations of five project KPIs: Time, Cost, Quality, Health and Safety, and Contractor Relationships. This enables companies to examine operations, risk and opportunities at a click of a button, with speed which has never been possible before.
By highlighting compliance results, in real time, teams can quickly solidify their reputations – proving that they follow all industry standards and deliver the needed results. This makes every tendering attempt more attractive to potential clients. It creates trust. Use benchmark data as a way to illuminate successful operations and emphasise capabilities.
Proof of Satisfaction: Customer Testimonials
While KPIs and benchmarks add substance to every bid, no company can ignore the importance of positive case studies. Customer testimonials are essential when tendering, offering insights into each team’s interpersonal practises (communication, leadership skills, dedication, etc.). Acuite recommends, therefore, using case studies to bolster the process.
Providing the testimonial in a video format will dramatically increase your chances of engaging your prospective client. Videos tell a story visually, and people easily resonate with it. Paper and text no longer captures people’s interest and engagement.
When creating video case studies, ensure to focus on the client and their success story. We recommend you also include the following information;
- Client Name and Project Type
- Project Objective and Challenges (in your client’s words)
- Steps Implemented to Reach Successful Outcome
- Client Testimonials at various progress point of the project (project commencement, off the ground stage, roof shout, handover and 2 months post occupation.)
Acuite recognises the importance of achieving data analysis directly from the construction site. This is why we’ve launched the Acuite Construction Intelligence system, providing a single information platform that automates the speed and processes for project performance in real time.
To learn more about our program and its effect on competitive tendering contact us today.