What is the tendering process in construction?

The tendering process in construction is the process of submitting a bid in response to an invitation for tenders from a client. The bid is typically for the supply of goods and services to the client, and the process involves researching the project and preparing a submission, which is then presented to the client to evaluate.

The process typically involves drawing up a tender document, including technical and financial details, which is then sent to potential suppliers. The suppliers respond with their offers, and the client evaluates the offers and selects the most suitable supplier.

The tendering process in construction in 10 steps:

1. Identify the project and the client’s needs.
2. Research the project and the client.
3. Prepare the tender document.
4. Submit the tender document to the client.
5. Receive and evaluate tender responses.
6. Select the most suitable supplier.
7. Negotiate the contract terms.
8. Execute the contract.
9. Monitor the project’s progress.
10. Finalize the project.

Is the tender process difficult in the construction industry?

Yes, the tender process can be difficult in the construction industry, as there are many factors to consider. The tender process requires careful planning and attention to detail, as the client needs to ensure that the chosen supplier can deliver results that meet the client’s expectations.

In addition, the tender process involves evaluating the financial and technical aspects of the bids, which can be complex.

Furthermore, contractors may also need to consider environmental, legal and political issues when evaluating bids.

Is the construction tendering process transparent and fair?

Yes, the construction tendering process is generally considered to be transparent and fair. The tendering process is typically conducted in a fair and open manner, with all potential suppliers having equal access to the tender documents and information.

Furthermore, the client is obliged to evaluate all bids objectively and select the most suitable provider. This helps to ensure that the chosen supplier can meet the client’s requirements and provide the best value for money.

20 things to consider when bidding in the construction sector!

1. Research the project thoroughly
2. Understand the client’s requirements
3. Determine the feasibility of the project
4. Estimate the costs and time required
5. Compile a comprehensive tender document
6. Understand the technical aspects of the project
7. Consider the environmental and legal implications
8. Consider the financial implications
9. Estimate the risks involved
10. Estimate the profit potential
11. Calculate the costs of materials and labour
12. Consider the insurance requirements
13. Identify any potential subcontractors
14. Evaluate the labour market
15. Consider the safety and quality standards
16. Consider the payment and delivery terms
17. Understand the warranty requirements
18. Evaluate the competition
19. Consider the client’s feedback
20. Assess the potential for future contracts

Our services include:

Tender Writing

Once you’ve found the perfect bid for your business, send it our way. Our Bid Writers can take care of the whole thing for you they’ll even submit it on your behalf. They’ll let you know what they need from you, providing you with a full Tender Writing breakdown.

Tender Ready

Our Tender Ready 4-week programme is perfect for businesses that have never tendered before. A Bid Writer will work with you to ensure you have everything in place to tender successfully. Tender Ready offers your business:

• A 12-month subscription to one Hudson Discover
• Access to Global Bid Directors and Senior Bidding Professionals.
• An Organisation-wide Bid library, including 3 case studies, 5 CVs and policies.
• Additional flexible benefits.

Tender Improvement

If you’ve been tendering but aren’t seeing success from your current efforts, our Tender Improvement package can help. Our Bid Team will assess your previous responses and tender documents. They will work with you to improve for future submissions. This package includes a 12-month subscription to a Hudson Discover portal and additional tendering development services.

Tender Mentor

If you’ve written your tender response and need it double-checked for errors, Tender Mentor can help. A Bid Writer will proofread your work for any inconsistencies, grammar, or spelling mistakes. They will also ensure it’s in line with the specification before you submit it. This is a great way of improving your skills and understanding of how to polish your tender.

Contact us:

Contact us to find out how we can help your business SUCCEED!

Additional support:

Do you only require assistance with PQQs or SQs? We can help!

Submit the relevant information regarding the work you need, and we will provide a quote for the work agreed upon.

We provide support at all levels of the bid writing process, so if you simply need it proofread before you submit it, we can also help with that!

Discover Elite

Upgrading to Discover Elite can optimise your tendering efforts!

Our two new time-saving tools can improve competitor awareness and success rate when bidding for a contract:

The Ultimate Time Save Package (for those on the go!)

• Five tender breakdowns per month.
• Annual subscription to two sector-specific portals.
• Dedicated account manager.

The Become a Pre-Bid Master package

• All of the above.
• Seven tender breakdowns per month.
• Bid Strategy delivered by a Senior Bid Manager (minimum five years experience). Our Global Bid Director will manage the bid strategy.

Our other divisions:

Vocal

Wanting to impress a buyer? Our creative content agency Vocal is always on hand to help!

Our Vocal team are never afraid to be heard – we’re a loud bunch!

From micro-businesses to large organisations, we provide ways to make your business stand out from the crowd. We can transform your bid into a professionally designed tender document!

Vocal specialises in:

• Copywriting
• Marketing
• Branding
• Websites
• Design
• Illustration

Alpha

Our online virtual learning environment for Education, Enterprise and Home Learners is currently being used to power our platforms – Tender VLE and Procure VLE (Coming soon).

We believe in learning at your own pace, wherever you are!

Find more helpful tips and advice in our blogs. We cover topics including:

• How to win a tender
• What is a Bid Writer?
• The tendering process
• Writing winning bids
• 7 tips for tendering for contracts
• Tips for bid management
• Bid writing services
• The types of tendering procedures
• Writing bids
• Bid Writing Consultants
• Submitting a tender response

The post Tendering Process in Construction appeared first on Tender Consultants.

[Last modified: July 2021]

Buyers use a PQQ in construction as the first stage of selection for potential suppliers.

This blog will cover everything that is asked for within a PQQ and how they are commonly formatted. It will also cover some frequently asked questions about PQQs in construction.

What is a PQQ in construction?

A PQQ stands for pre-qualification questionnaire. They’re used as part of the tendering process when a buyer is looking to procure works, goods or services.

Essentially, a PQQ in construction requires you to note basic company information, confirm statements of non-collusion and more. They can end up being quite a lengthy process, but there are some variations of PQQs in construction. It varies from buyer to buyer and depends on how they want to procure.

Is there any other format for a PQQ in construction?

Standard Selection Questionnaire 

A PQQ in construction can also be referred to as a standard selection questionnaire (SQ). The aims of an SQ are to simplify the supplier selection process for smaller enterprises. It typically includes a self-declaration that you don’t meet any grounds for exclusion.

PAS91

A more common form of PQQ in construction is the PAS91. It is a standardised type of PQQ used in the construction industry. They are used by buyers to filter suppliers who might not be eligible, thus ensuring they’re getting top tier suppliers.

You must pass the PAS91 in order to progress onto the invitation to tender (ITT) stage. PAS91s are designed with small and medium-sized enterprises (SMEs) in mind. It simplifies the PQQ process thus encouraging more SMEs to become suppliers.

The PAS91 helps buyers identify the most suitably qualified suppliers quickly. This is because by passing, you are demonstrating that your business is qualified, fitting the minimum standards for the contract.

If you are a Constructionline member, you are automatically compliant to some PAS91 questions. Although this saves you a lot of time, it doesn’t mean you can skip this stage completely. You will most likely still need to complete a few questions in the PAS91.

The 2017 amendment to PAS91 now includes new questions covering mandatory reasons for exclusion and legislation. These relate to the Immigration Act and the Minimum Wage Act.

What does a PQQ in construction ask for?

You may be wondering what exactly a PQQ in construction asks for. Typically, you will be required to add information to the following 11 sections.

1. Company information

The first piece of information that is required for a PQQ in construction, is your company’s information. This includes your registration and VAT number. You must also state what type of organisation you are and provide your contact details.

2. Grounds for mandatory rejection

This section simply required you to answer ‘yes’ or ‘no’ to questions relating to various statements. These are often to do with conspiracy, corruption, fraud and bribery.

3. Grounds for discretionary rejection

The grounds for discretionary rejection are similar to the grounds for mandatory rejection. You’re required to answer a series of ‘yes’ or ‘no’ questions stating your business hasn’t been convicted of criminal offences.

4. Economic and financial standing

For the economic and financial standing section, you will typically be asked for three things:

• Annual turnover

Contractors will assess your annual turnover via your latest financial accounts. You should only apply to tenders that are 40 – 50% of your annual turnover and no more. Any higher, and it’s unlikely that you will be approved.

• Financial ratios

You may be asked to attach asset test ratios. These may be assessed automatically through your attached accounts as part of your tender submission. Some PQQs require you to input this separately within the document. If unsure, your accountant should be able to support you with this.

• Insurance

Buyers will want you to be aligned with the requirements set for insurance. Typically, buyers will allow you to increase your levels of insurance.

If you are unsure if you meet the necessary requirements, read the full specification. It will usually note the requirements and pre-requisites needed.

5. Technical and professional ability

A buyer will obviously want to know that your business is qualified to carry out the job at hand. They often want to see examples of past contracts you have completed that are of a similar scope. They may ask for up to three case studies within the last five years.

A strong response will include evidence from past clients, and you may be asked to attach past client’s information on. This is so they can be contacted by the buyer to confirm the accuracy of the information you provide. Backing up these case studies with concrete evidence will get you in the buyer’s good books.

An example of a typical question asking you to demonstrate your technical ability shared across PQQs in construction is:

“Please provide details of up to three contracts from either or both the public or private sector, that are relevant to the Authority’s requirement. Contracts for the supply of services should have been performed during the past three years.”

The word count for answers can vary from as little as 150 over 1000. If this seems a little overwhelming, you could try breaking the question down into key sections. The STAR method:

• Situation – an introduction.
• Task – the specifics of the tasks at hand.
• Actions – how you delivered the contract, including key challenges faced.
• Results – detail the success of the contract and emphasise why you’re the best business for the job.

It may also be worth noting any unexpected complications you faced while fulfilling these contracts and how you overcame them. This allows you to demonstrate initiative, problem-solving skills and flexibility which are key with any construction project.

6. Staff and subcontractor’s information

You most likely will be required to provide the staffing and subcontractor information you intend to use if successful. You’ll likely need to demonstrate that they have the capabilities and experience to guarantee a successful project. This can include:

• CVs
• Summary introductions to team members
• Provisions of qualification documents

You want to convey to the contractor that you know what you’re doing and can deliver the project successfully.

7. Project-specific questions

This includes technical capability such as any qualifications and accreditations and project-specific questions. Some examples of potentially relevant qualifications and accreditations needed for a PQQ in construction are:

• ISO 9001; 14001; 18001
• CSCS Card
• CPCS
• BIM
• SSIP
• IOSH
• Subcontractor
• CHAS
• SafeContractor

8. Health and safety

The buyer wants to be assured that your company works to the highest health and safety authority. It is one of the most important sections of a PQQ in construction. They want to be sure potential suppliers can deliver the work as safely as possible. You need to demonstrate clear levels of accountability to ensure works are delivered in accordance with the appropriate regulations. For example:

• CDN 2015
• Health and Safety At Work Act 1974

If completing a PAS91 – you will be exempt from completing this section if you have:

• Completed a PAS91 question set within the last 12 months.
• A formally recognised management system such as OHSAS 18001;2007 or ISO 45001;2018.
• A SSIP health and safety accreditation such as SafeContractor or CHAS.

If you don’t have these, then you will be asked a series of questions regarding your health and safety policies and procedures. Areas that could be covered are:

• The training of staff and how you keep them up to date regarding health and safety practices.
• Risk assessment and accident reporting (RIDDOR).
• Reviewing policies, procedures and compliance with best practice.

9. Quality assurance

A PQQ in construction is likely to have a section on quality assurance. For this, suppliers will often have to answer noting their approach to performance management. This can include the likes of:

• Quality assurance and training procedures.
• How you manage the underperformance of employees and how you discuss this with them.
• Reviews of policies, procedures and compliance with best practice.
• Inspections, audits and any other means of performance management you may use.

If you’re certified with ISO 9001 and provide a certification to show this, you can be exempted from completing this. If you don’t, you can provide training records and even inspection reports to back this up.

10. Environmental management policy

A businesses environmental management policy is an ever increasingly important section within a construction PQQ. You will be required to provide evidence responses to the questions. This could be done with the provision of policies and procedures your company holds. They must state that you’re undertaking the appropriate due diligence to minimise your environmental impact. Areas you can cover include:

• How you’re reducing waste and encouraging recycling.
• Reducing carbon emissions.
• Training and maximising environmental awareness.

However, if you hold an ISO 14001, you can bypass this.

11. Equal opportunities policy

You will need to include your company’s equality and diversity policy. This is to ensure you are maximising equal opportunities for all employees regardless of sex, relationship status or ethnicity. Your business’s equal opportunities policy needs to be in line with the Equality Act 2010.

Need help completing your PQQ for construction?

Here at Hudson Succeed, we offer four bid writing packages to suit your businesses’ needs. For more information on how we can help you complete a successful PQQ in construction, get in touch.

Are you looking for more tender contracts for your business but don’t know where to find them?

Our Construction Tenders portal can help.

Our Opportunity Trackers manually source live construction leads from thousands of sites. They then manually upload them to one, central easy-to-use industry-specific portal. There’s no reliance on inaccurate CPV codes, and you’re able to filter the results by keyword, budget, location and more. You’ll also receive a dedicated Accounts Manager to help answer any questions or queries you may have about the process.

When you sign up, you’ll also receive a daily construction tenders bulletin straight to your inbox. It’ll detail all the new construction tender opportunities that are available. This can help save you countless hours and allow you to focus on your business.

Book a Demo with Construction Tenders

Find more helpful tips and advice in our blogs. We cover topics including:

• How to win a tender
• What is a Bid Writer?
• The tendering process
• Writing winning bids
• 7 tips for tendering for contracts
• Tips for bid management
• Bid writing services
• The types of tendering procedures
• Writing bids
• Bid writing consultants
• Submitting a tender response
• And many more.

The post Hudson Insight Series: PQQs in Construction appeared first on Tender Consultants.

Last updated: Dec 17, 2021 @ 9:30 am

The environment we live, work and socialise in is in flux. 2019 brought about the UN Climate Action Summit. The goal of this summit was to address climate change directly.

A key point was that globally, we must do more immediately to address climate change. The Paris Agreement plays a key role within sustainability and climate change.

It is an agreement initially reached at a Paris COP 21 climate change conference in 2015.

It was entered into force the following year.

The English text edition of the Paris Agreement (dated 2015) comprises of 29 Articles over 25 pages. This document sets out environmental aims and objectives, which are agreed by parties (parties here meaning countries).

Key points within the Paris Agreement which apply to the Construction industry include:

• Acknowledgement that we must take action against climate change based on scientific data. Climate change is an urgent threat;
• The importance of conserving greenhouse gas sinks. Sinks store carbon dioxide -examples include soil, sea and plants;
• Public awareness, education and training about climate is extremely important;
• Understanding that producing goods and services sustainably will help to address climate change.

To date, 189 parties of the United Nations Framework Convention on Climate Change (UNFCC) have signed. Across the world, countries are taking note that environmental action is needed, now.

Several UN climate action summits, conferences and dialogues were held in 2019. Locations included Madrid, New York, Brazil, Ghana and Poland. At these events, grassroots enterprises, big businesses and scientists gathered to discuss key environmental initiatives and plans.

Climate change

We can already see climate change in action right now. This is evident with increasing events such as:

• Australian bush fires in 2019 and 2020. These fires severely impacted people, animals and landscapes across the country. Global warming is likely to increase bushfire risk by 30%, according to the World Weather Attribution consortium and BBC.
• Recent NASA satellite data found that Greenland loses 283 gigatonnes of ice sheet mass every year. One gigatonne alone is comparable to the mass of one billion metric tonnes of ice sheet loss.

Climate and sustainability experts are concerned that we are not on target to meet average global temperate targets. Due to climate change, temperature have risen, which contributes to the events described above.

Climate change and construction bid management

Companies and individuals recognise the impact and responsibility they have when producing and delivering services. However, in 2018, new UK construction work was valued at over £113 million by the Office for National Statistics. There has also been a steady rise in new construction organisations carrying out works. This figure may prove contradictory to the needs of the Paris Agreement. How can construction businesses thrive economically, whilst also being sustainable?

Let’s look at some key construction companies within the industry. How are they reducing their environmental impact through service delivery?

• Amey: A huge competitor within the construction industry, they produced a white paper last year. This paper outlines decarbonisation within the UK. This involves significant changes to the heating structure, change in policy, and investment in low carbon technology.
• Kier Group Plc: Through smart technology, in line with high environmental standards, 92% of Kier Group operations are ISO 14001 certified. They provide energy saving advice to clients and are members of environmental protection schemes like the Considerate Constructors Scheme.
• Morgan Sindall: Recording their carbon emissions yearly enables Morgan Sindall to measure and reduce climate change impact. Morgan Sindall verifies their CO2 emissions through the Certified Emissions Measurement and Reduction Scheme (CEMARS). They also measure the total amount of construction activity waste which is diverted from landfill annually.

What might a bid manager and their construction clients consider?

Bid managers when supporting their construction sector clients will find very specific environmental questions in the tendering process. Social, legislative and environmental pressures influence questions posed by buyers seeking construction services. Buyers – particularly those within the public sector such as councils and government bodies – must consider sustainability. They must source construction companies who, through their service delivery, will:

• Mitigate climate change risks through practices and procedures;
• Provide sustainable and economic value both at contract acquisition and during contract lifetime.

  How can construction organisations evidence sustainability?

There are numerous ways for a bid manager to support their construction sector client tenders. We can demonstrate innovations through for example:

• competitor analysis
• audits
• research
• policy and procedures.

As mentioned above, construction companies are responding to current environmental needs. It is essential going forward for others to follow suit. For service delivery to be economically sustainable, companies must demonstrate environmental sustainability to achieve this.

Innovation is key for larger companies, as they are at the forefront of public awareness. Larger companies who have the capital can invest in new methods of reducing and mitigating their CO2 emissions.

During tender writing, for any innovations, it is essential that they can be evidenced and measurable. This must be in solid facts and figures. There is little value in providing vague or airy statements without the ability to demonstrate this to buyers. Evidencing innovations will present your construction business as having transparency and integrity.

Small construction companies have just as much opportunity to demonstrate environmental innovation. If you have a small business, the best way to do so is to become involved with your community. Bid Managers may find that their construction client does not have formalised environmental evidence. This is something that they can develop with time and planning.

The supply chain – Construction Bid Management 

For example, key in many construction contracts is the supply chain. Construction clients can commit to implementing sustainability within their supply chain. This can include:

• their transportation arrangements;
• raw materials;
• waste removal.

For example, can vehicles transporting materials commit to going electric? Can the business commit to hiring qualified staff who are local to the area. There are many options to explore here.

Other suggestions may include alternative means of communications for meetings, such as Skype or Zoom. This is particularly relevant given the recent social proximity restrictions due to COVID-19. Doing so enables individuals to maximise their productivity, spending less on the road commuting to meetings.

Dashboards

An environmental dashboard is an excellent opportunity for small and large construction companies to demonstrate innovation. This dashboard can be as flexible as your organisation needs it to be. Therefore, Bid Managers in the Construction Industry could suggest elements such as measuring energy, fuel or water consumption. Other approaches could be reporting on the total weight of construction materials recyclables saved from landfill each month.

Embodied Carbon

Embodied carbon is becoming something of a buzzword in construction tender questions. Indeed, demonstrating that your business measures embodied carbon is essential for many large construction businesses.

As a Bid Manager in Construction, it is important to differentiate between carbon footprint and embodied carbon, across your quality responses.

In simple terms, embodied carbon is measured through all processes starting from the ground (literally). It includes measurement project CO2 from the ground (raw materials) and includes:

• transport and logistics
• powering the construction site
• waste management and material recycling.

On the other hand, carbon footprint is measured through the CO2 emissions produced by actually using the created product or service. When buyers pose the question of measurements, they are looking for:

1. all carbon emissions used to produce a final construction project – this is embodied carbon.
2. all carbon emissions produced by that completed construction project in use – this is carbon footprint.

Passivhaus

As a Bid Manager, your construction-sector clients may be interested in Passivhaus. Passivhaus is a building construction standard, established by The Passivhaus Trust. Buildings are designed and modelled using a bespoke package. The building is assessed, to determine if it passes criteria, such as:

• How airtight is the fabric of the building?
• Are the windows high performance and sufficiently insulating?
• Has the design enabled the efficient recovery of heat within the building?
• Is it very well insulated?

Buildings which can be certified as Passivhaus can range in size and scope. They are designed to be so efficient that the need for internal heating is negligible. This means that the building does not lose heat. So much so, that rooms maintain pleasant ambient air temperature within the space.

Passivhaus is important to the construction sector because it more heat-efficient buildings means less CO2. For one building alone – this makes a difference. For larger housing contracts and frameworks – the cumulative CO2 saving is more significant. Designing houses to this standard makes sense, both financially and environmentally.

It is beneficial for construction companies to consider Passivhaus, particularly those who specialise in housing.  Passivhaus certification is highly regarded by procurement buyers seeking environmentally friendly construction businesses. The key here is that Passivhaus is more economical to implement during a building design phase. It can be potentially more costly to refurbish a space later on, in line with this standard.

Construction Bid Management – Looking forwards 

It is clear that there are many environmental considerations for construction companies during the tendering process. Why not let our bid writing team help you to optimise each opportunity? Our highly experienced team know exactly how to win a tender. Our service will help you secure new, relevant construction contracts. We will work with you, to win those opportunities which your company can deliver, and identify areas where you can improve in order to grow your business. We support over 700 businesses globally – get in touch today to see how we can help with your construction bid management.

Find more helpful tips and advice in our blogs. We cover topics including:

• How to win a tender
• What is a Bid Writer?
• The tendering process
• Writing winning bids
• 7 tips for tendering for contracts
• Tips for bid management
• Bid writing services
• The types of tendering procedures
• Writing bids
• Bid writing consultants
• Submitting a tender response
• And many more.

The post Construction Bid Management – Construction and the Environment appeared first on Tender Consultants.