What are the Benefits of Collaborative Tendering?
When bidding for contract work, tender writers can often improve their chances of acceptance by collaborative tendering with another firm on a joint bid. This not only demonstrates that your company is capable of negotiation and teamwork with other vendors, but also ensures that, between the two businesses, you can offer greater innovation and expertise.
In this article, we’re going to discuss the various aspects of collaborative tendering and how it can benefit you when the time comes to bid a tender.
What is collaborative tendering?
The basic definition of collaborative tendering is two or more organisations operating in unison to bid for a tender that, as individual companies, they would be less likely to win. It is a common business practice, particularly when bidding for larger contracts, where the scope of the contract is beyond all but the largest companies.
What are the benefits of collaborating on a tender?
Collaborating with another firm to bid a tender brings many benefits. Chief among them is that the companies involved in the tender process have a better chance of submitting a winning bid than if they were to go it alone. By combining their resources and their experience, they are more likely to meet the specific requirements of the tender document.
Linked to this, by working alongside another company in the same field, you simultaneously strengthen your claim on the contract, while also reducing the number of competitors. After all, the company you choose to work with will not be submitting their own bid.
Some tender documents require vendors to demonstrate minimum turnover, which can be a challenging obstacle for smaller companies. Even if you consistently produce excellent work for your clients, the turnover criterion can scupper your chances of winning the bid. By collaborating with one or more other small firms that can complement your own expertise, you benefit from using your combined turnover as the figure for the tender.
Another key benefit of collaborative tendering is that it mitigates any risk associated with the project. The costs and liabilities of the contract are shared amongst the firms. In the event of any problems during the course of the contract, you will not be solely responsible for any costs or penalties, which can be a useful safety net for smaller companies.
Whether you’re planning to collaborate on a tender with another company or looking to go it alone, Your Tender Team is there for you when you need us. Call our experienced tender writers today on 0116 218 2700 to discuss your requirements and to receive a free, no obligation quote.