Winning tenders: what 47% of businesses are doing wrong


Nearly half of construction leaders are differentiating their business on this same strength during the tendering process, according to a recent survey by tender consultancy firm Madrigal Communications

Of those surveyed, 21% say they differentiate themselves on quality, 21% on price, 10% on client communications. However 47% say their strength lies in management expertise.

Differentiation is an important marketing tactic used by businesses to distinguish their product or service from the competition, yet it loses its potency if the competition are differentiating themselves in the same way.

Director of Madrigal Communications, Tim Entwisle, observes that for many businesses there is a lack of understanding of the requirements of tendering and the way to succeed in the tendering process.

“While most companies understand the need to provide a detailed bid document, many don’t understand that merely being able to do a project isn’t enough. You have to prove you can do it better than anybody else. Hence differentiating their bid is so important.”

When asked what respondents believe clients are most concerned about during the tendering process, the majority of those surveyed (60%) answered price.

The inconsistency between industry leaders tendering strategies and the perceived needs of the client is impacting businesses ability to win work, as indicated within the survey.

When respondents were asked ‘what ratio of tenders do you win?’ 47% reported approximately 1 in 4 and 24% reported less than 1 in 4.

With 79% of respondents reportedly impacted to some degree by Covid19 and the subsequent lockdown measures, it is essential, now more than ever, that businesses are using effective strategies to win work.

In Australia, the promise of $87.2 billion worth of projects across the next four years as part of the NSW government’s infrastructure pipeline has 75% of industry leaders are preparing to win work through tendering. Meanwhile in New Zealand, the Government has announced 150 shovel ready projects amounting to over $4.3 billion.

Entwisle implores businesses to get expert advice or help in preparing their bids.

“When preparing a bid, tender, or proposal, you must remember that you are preparing a sales and marketing document, not just a price quote. You must give your prospective client compelling reasons to choose you over your opposition.”