The Tender Process Demystified: How to Secure Lucrative Subcontracts

Episode #15

In this episode of The Subcontractors Blueprint, Jacob Austin discusses the tender process and submitting quotations. He acknowledges that while two-stage tenders are not commonly used in subcontractor procurement, they can be beneficial for complex projects. Jacob highlights the increasing requirements for pre-qualification in subcontractor procurement, with contractors needing to ensure their subcontractors are competent and capable. He also expresses frustration with the numerous pre-qualifications and accreditations required, and hopes for a more streamlined and universal system. Jacob provides valuable insights on how subcontractors can navigate the tender process, including clarifying scope, addressing program considerations, and pricing strategies. Overall, this episode offers practical advice for subcontractors looking to ensure profitability and grow their business.

KEY TAKEAWAYS

  • The traditional single-stage tender approach is commonly used in subcontractor procurement, with limited use of two-stage tenders.

  • Main contractors often require subcontractors to undergo pre-qualification processes to ensure competency and capability, including health and safety policies, environmental policies, and quality management.

  • The use of standardized assessment systems, such as PAS91 or the Common Assessment Standard, aims to simplify the pre-qualification process, but additional requirements and questionnaires can still be added by main contractors.

  • When submitting a tender, subcontractors should clearly define the scope of work, referencing relevant drawings and specifications, and stating any exclusions or alternative proposals.

  • It is important to address pricing accurately, including any errors or discrepancies in the bill of quantities, offering alternative options if applicable, and clearly stating the validity period and any discounts or additional costs.

BEST MOMENTS

"And rather disappointingly, various of the main contractors have got their own little questionnaires added into these pre-qualifications." 

"What the fuck has that got to do with building? What happened to just procuring the best contractor to do the work?"

"So we're starting to trickle into the things that you need to provide when you submit your tender."

"By stating what these are you're limiting your liability and you're also giving the contractor some useful information to help vet his other tenders." 

"A statement such as that should allow you to negotiate the conditions if the contractor finds your offer to be of interest." 

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.

LinkedIn - www.linkedin.com/in/jacob-austin/

Instagram - www.instagram.com/qs.zone/

www.linktr.ee/qs.zone

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