When it comes to tendering, even the tiniest of mistakes can lead to lost opportunities. A missing signature, an overlooked document appendix, or a miscalculated cost estimate can turn months of work into completely wasted time.
This article is the first of two that will look in depth at the most common errors that plague bid submissions and reveal why missing documents, late submissions, inaccurate pricing strategies, and poor risk management are more than simply small oversights – they are often deal-breakers.
In a situation where every single minute, document, and number matters, this article aims to provide the technical and procedural know-how to be able to stand out and succeed.
In Part 2 of ‘Common tendering failures and how to avoid them’, the mistakes that are characteristic of bidders will be considered – the company-centric trap, bidding on everything possible, and the common problem of poor client understanding.
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Problem: Missing documentation
Missing documents are a common issue in bid submissions and can tank an otherwise good proposal. The problem often arises from lapses in document management, leaving organizations to discover – sometimes at the eleventh hour –that vital paperwork has either expired, is incomplete, or is missing altogether.
Financial documents are frequently the most at risk of being overlooked, particularly audit statements and tax compliance certificates. Registration documents and industry-specific permits follow closely behind, with many organizations failing to maintain up to date versions of these.
A few strategies to prevent missing documents during bid submission
A more systematic approach is strongly recommended when it comes to document management. The first step should involve having a centralized repository for all documentation which should include:
- Business registration certificates and permits
- Financial statements and audit reports
- Tax clearance documentation
- Industry-specific certifications
- Insurance certificates.
Something that many businesses fail to implement is a fundamentally proactive approach to managing documents – it’s absolutely vital to always be aware of expiry dates. Automating this process is probably the best approach but otherwise running quarterly audits would allow any expired documents to be spotted before their lack of currency causes an issue. It is also strongly recommended to have a master checklist that features the most common documentation required in your industry.
Problem: Late submissions
In procurement, businesses are always at the mercy of time. Whether you’re late by a few hours or minutes doesn’t really matter because the bid will be disqualified, regardless of how competitive your terms and pricing are.
Electronic submission platforms typically disable the submission of any further bids after the deadline has expired. Technical issues frequently occur within the last few minutes of the submission window, the most common reason for which is that the large number of bidders posting submissions simultaneously overload the servers.
A few strategies to prevent late submissions
It is strongly advised to have an internal deadline for digital submissions – 72 hours prior to the actual deadline is a good ballpark timeframe to ensure that you’ll be able to comfortably submit your proposal, even if there are last-minute changes that need to be made.
A ‘dry run’ is also a good call if you’re looking to take an even safer approach. This basically means that you rehearse the bid submission, and here’s how this can be achieved:
- Compile all the documentation in final formats
- Test the online submission platform to make sure that you’re able to submit your bid
- Make sure that file sizes and formats are compliant with the requirements
- Make sure that your digital signature works properly
- Ensure that your browser is up to date and not missing any crucial plug-ins.
Problem: Inaccurate pricing
In view of constantly fluctuating material and labor costs, organizations should keep a close eye on prices and rates used in their bid submissions. Many companies tend to underestimate project costs because they fail to take into account the latest market rates or use outdated wage data. As a result, a substantial part of a business’s profit margin could be eroded.
Another very common issue many businesses face when calculating project costs is mathematical errors in their spreadsheets which then tend to multiply, especially across larger bids.
A few strategies to prevent inaccurate pricing
Similarly to the suggested strategy for collating documentation, it is also highly advisable to create a checkpoint-based price verification protocol.
Bidding demands clarity so every cost, every assumption, every variable must be tracked. This begins with crafting detailed cost breakdown structures to ensure all project elements from labor to logistics are captured. Keep supplier price lists and labor rate databases current, and avoid relying on outdated quotes.
Document every pricing assumption so that the rationale remains transparent, particularly if costs will require re-evaluation. Contingencies also matter. Sudden shifts in the market, resource shortages, or unexpected regulatory changes can send costs soaring. Building in buffers will insure a bid against economic turbulence.
Problem: Poor risk management
Risk often goes unnoticed in the adrenaline rush of bidding for new contracts. It slips into the background, as optimistic revenue projections and the allure of landing a marquee client take center stage. But then setbacks start to emerge. Unforeseen legal obligations increase costs. A labor shortage leaves your team scrambling to meet deadlines. The market shifts, and profit margin plummets.
Poor risk assessment can quickly undermine even the most promising project and create a domino effect that sends budgets spiraling and timelines shifting. At that point, the damage is done. Teams lose morale. Clients lose faith. And the organization’s ability to compete suffers.
A few strategies to prevent poor risk management
Risk management brings balance to these unknowns. Firstly, identify any potential pitfalls as early as bid kick-off. A thorough review of contract conditions, past project outcomes, and market forecasts will provide the foundation for realistic planning. Next, develop mitigation strategies to control each identified risk.
These solutions could include alternative production processes or flexible labor resources. In tandem, also incorporate contingency plans – essential safety nets that include extra funds or back-up suppliers should vital resources fail. By formalizing an action plan, impulsive decisions can be avoided when the pressure mounts.
Finally, price the risk factors accurately. Calculate conservative allowances for material increases or subcontractor delays, then build these into your final proposal. Although this can sometimes make a bid price appear less competitive, a well-justified allowance highlights professionalism, not complacency.
Wrap-up
It’s important to view these bidding pitfalls as more than just an exercise in compliance. It’s more of an opportunity to refine internal processes, sharpen your competitive edge, and build lasting trust with clients.
- Missing documents can be avoided through consistent audits.
- Late submissions can be prevented by implementing earlier deadlines and dry runs.
- Inaccurate pricing can be tackled with robust verification routines.
- Risk management – too often overlooked – demands proactive planning that introduces contingencies at every phase.
With these strategies, your organization can rise above the errors that derail many bids.
When proposals are too focused on the bidder, they can come across as self-serving and even out of touch. A client reading bids already has a lot of information to process; if your bid doesn’t quickly address their pain points or align with their goals, it’s likely going to be rejected - just like in the case of a recruiter who turns away well-written CVs, because they describe the perfect consultants, but not the candidate who fits the specific role.
Don’t forget to check into the Tenderwell newsroom for Part 2 of "Common tendering failures and how to avoid them".