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The 23 biggest mistakes that
bidders makePresented by
David Harrison
www.winthatcontract.com
Thank you for downloading a copy of the 23 biggest mistakes that bidders
make. The original report was written in 2008. It is certainly a different world
now in 2013 and the new report reflects the changes that have occurred in the
competitive environment.
I genuinely hope that it provides some insight into what clients and their
procurement evaluators are looking for and enables you to improve your
chances of success in what is a highly competitive and challenging economy.
If you like the report then we would be grateful if you would recommend it to
others. Social media links have been added below to assist with this.
Best wishes and good luck.
David.
27th April 2013
http://www.winthatcontract.com/http://www.winthatcontract.com/ -
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Table of ContentsIntroduction 4
Competitive Advantage 71 Pursuing unsuitable opportunities2 Lack of innovation and creativity3 - Failing to differentiate your solutions
Relationships 124 Weak relationships with the customer and their evaluators5 Failing to build trust and rapport6 Not asking the right questions before the PQQ, ITT or RFP is issued
Processes 167 Unstructured business development,captureand bid processes8 Insufficient planning and preparation
PQQ and Bid Teams 199 PQQ and bid teams under resourced10 Little commitment shown by key contributors
Understanding 21
11 Not understanding customers needs, standards, expectations, constraintsand concerns
12 Misinterpreting the procurement process, instructions, questions, scoringand selection criteria
Strategies and Tactics 2513 Being outsmarted by competitors14 Pricing tactics which backfire15 Late surprises16 Running with the wrong partners
Evidence 2817 Performance data is threadbare
18 Aspirational answers19 Poor references
Content and Presentation 3020 Demonstrating how your solutions will add value and reduce risk?21 Features and benefits22 Poorly written and poorly presented documents
Post-tender Interviews 3323 Snatching defeat from the jaws of victory
Summary 35
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Introduction
One of the most challenging aspects of running your business is ensuring asteady stream ofprofitable contracts.
The trouble is your competitors are also putting in a lot of effort in finding thebest customers and the best projects to bid for. As the economy continues tostagnate, then in mature markets such as construction or IT services, thecompetition gets even fiercer. It is not uncommon to see over 100 organisationschasing the same opportunity.
With so many applicants, customer procurement teams face a daunting task todraw up a short list of bidders who are best qualified to undertake the project or
programme. They all want to do this efficiently and as a result the initialemphasis with the pre-qualification process is on the speedy elimination ofunsuitable applicants who clearly do not meet the minimum requirements andwould introduce too much risk for the customer.
This is followed by the difficult task of finding a short list of the bestorganisations to bid for the contract, those who can manage risk and add value.The difference between success and failure often comes down to just a singlepercentage point.
Over the last ten years it has been noticeable how much more difficult it is to
pre-qualify to tender for an opportunity let alone winning the contract. The bar isgetting higher and higher. A few years ago scores of just over 70% wouldnormally carry you through to the next stage but today you need to be scoring90%.
If you successfully pre-qualify to bid for a contract then not only do you have tobe competitive with your price but you also have to continue to demonstratehow you can maximise value and minimise risk for your customer.
Many tenders, particularly for public sector contracts are awarded on the basis ofthe most economically advantageous tender (MEAT) which means that the
customer selects on best value rather than lowest price, although in todayseconomic climate more weighting is being given to the price.
The method for determining value is usually through a requirement for biddersto complete a quality or technical questionnaire or prepare a quality or technicaldocument which is submitted alongside the pricing schedules. These areassessed by customers against pre-determined scoring criteria.
If you don't have a proven system for preparing and presenting your answersto the questions posed in the pre-qualification questionnaire (PQQs), invitationto tender (ITTs) or requests for proposal (RFPs) documentation, you could find
yourself way down the pecking order and fall at the very first hurdle.
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Despite these challenges, there are companies just like yours who consistentlywin a steady stream of lucrative contracts and long term frameworkagreements with some of the best customers in their sector.
I call these companies the Elite Bidders.
So what's the difference between those who struggle to pre-qualify and wintenders and proposals and those who consistently win contracts?
And, more importantly, how can you become an Elite Bidder too?
That's where I come in. My name is David Harrison and I specialise in helpingcompanies like yours to really punch above their weight and not only sailthrough pre-qualifications but win both individual contracts and long termframework agreements with target customers.
My company has been helping bidders achieve outstanding results in PQQs, ITTsand RFPs for 10 years with a success rate of:
95% for PQQs and 66% for tenders and proposals
These are not flash in the pan results; they have been achieved over a fulldecade, through good times and lean times. Nor are the results qualified toexclude tenders and proposals lost due to factors outside the control of ourcompany such as price.
How do we achieve great results consistently?
Well, I have worked in the construction industry for 35 years, of which 21 havebeen at Director Level. I have amassed a huge amount of contacts, knowledgeand experience in bidding for work as a contractor and as a consultant, learningwhat works and what doesnt.
Believe me, I have learnt the hard way and picked up some valuablelessons along the way.
I also work for end-user customers as a lead consultant, procuring the servicesof consultants, architects, surveyors, contractors, facilities managers, projectmanagers and specialist contractors.
I design and manage the whole procurement process, from advising clients onprocurement strategy, advertising the tenders in the Official Journal of theEuropean Union (OJEU), designing and issuing pre-qualification and tenderdocumentation, evaluating submissions from bidders and through to managingtender interviews and negotiation of contracts.
Over the years I have seen the very best examples of pre-qualification, tenderand proposal submissions and the very worst and have the insider secretsfrom customer evaluation panels on what it takes to score well with customersand have seen all of the mistakes that bidders make!
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Not only are we involved with matching up end-user customers and theirsuppliers but our post tender mobilisation service helps customers and theirdesign and construction teams set up their projects to achieve their objectivesusing innovative techniques and processes which deliver FASTER, BETTER and
CHEAPERresults.
The combination of knowledge, skills and experience used in both our tender andpost tender services gives us a unique insight into exactly what mostcustomers need and what they are looking for when selecting a key designteam professional, contractor or supplier to undertake a project or enterinto a long term framework agreement.
Ive put together this SPECIAL REPORT to give you a comprehensive picture ofwhere I believe organisations are going wrong when completing pre-qualificationquestionnaires, tenders and proposals. I have grouped the 23 biggest mistakes
into similar categories; there are nine of these, each one forming a new chapter.
Perhaps you might recognise some of the mistakes and hopefully this willencourage you to take action to avoid these pitfalls when submitting PQQs,tenders and proposals and improve your chances of success. It could make allthe difference!
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Competitive Advantage
Mistake #1 Pursuing unsuitable opportunitiesMistake #2 Lack of innovation and creativity
Mistake #3 Failing to differentiate your solutions
Mistake #1 Pursuing unsuitable opportunities
If you dont have a competitive advantage then by definition you have a
competitive disadvantage and are destined to lose.
Some bidders are totally unrealistic and over optimistic when it comes to
selecting which contracts to pursue and they have very little chance of winning.
If you were a customer would you:
Place an order which would double that companys annual turnover? Put your faith in organisations which have all of their resources
concentrated in a base which is remote from the project?
Take a risk with a supplier which has a weak balance sheet? Select a company that has absolutely no track record for the type of work
to be undertaken?
I know you have got to start somewhere if you are trying to break into a new
segment of the market but every end-user customer I have worked for doesnt
want to take a gamble when appointing contractors, consultants and suppliers
and is looking to eliminate as much risk as possible.
It is clear when some companies are being unrealistic or too ambitious and they
have zero chance of success. As an old boss of mine used to say, You would be
better off doing the crossword!
I have advised my own clients not to bid for certain contracts because I just
know that they will be wasting their valuable time and money, even though
some of that money would have been spent on my fee! Time and money are
scarce commodities and should be spent wisely on bids where you know youve
got a competitive advantage which gives you at least a 33% chance of success.
If you have done your homework then the minimum requirements and selection
criteria should not come as a surprise when the Pre-Qualification Questionnaire
(PQQ), Invitation to Tender (ITT) or Request for Proposal (RFP) arrives and youshould already be able to evaluate your chances of success. A good bid-no bid
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policy will guide you in making the right decisions. If you dont have one then
contact me and I will send you an example for you to adapt and use.
Dont be too greedy
Sometimes, contracts and in particular framework agreements are broken down
into lots, usually by geographical area but sometimes by size of contract.
As a procurement consultant who evaluates PQQs and bids, it is quite refreshing
when a bidder says that they wish to concentrate on only one or two lots
because they do not wish to dilute their efforts across too wide an area or take
on projects which are inappropriate to their resources, skills and experience.
But far too often, bidders put themselves forward for everything in the
misconception that customers want a one stop shop every time.
All companies are better off concentrating on bidding for work where they are
strong. It makes sense, but we live in a world where many want to take a punt
at everything in the hope that they get a lucky break. It just doesnt work out
that way does it?
Addressing weaknesses particularly with your financial stability
Customers want to select companies who will remain financially secure over the
life time of the project or framework contract and they are looking for
reassurance from bidders.
In fact, financial stability is a pre-requisite at pre-qualification stage for every
contract advertised in OJEU and is usually a gateway that has strict pass or fail
criteria. If you fail to fulfill the criteria then you are eliminated and will not pass
through the gateway to qualify for the next round.
Most pre-qualification questionnaires ask for the last three published accounts.
The customers procurement evaluators are looking at liquidity and solvency
mainly but also take into account turnover (as a measure of capacity),
profitability, and value added per employee, debtor and creditor days.The trouble with published financial accounts is that they are an historic snap
shot and you cant do anything about them once they have been published.
Some clients will just reject the application if the suppliers financial accounts are
weak but others will seek further clarification of the companys latest financial
position and may request written support from their bank.
If your financial stability and capacity has improved since the publication of your
last set of accounts through the collection of debts, an upswing in profitability or
the injection of new shareholders funds then it pays to provide this information
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in your pre-qualification questionnaire. If necessary create an addendum to the
PQQ or submit this information with a covering letter.
Mistake #2 Lack of innovation and creativity
Many bidders are too pre-occupied with being the lowest price technically
acceptable compliant bid.
You may be thinking whats wrong with that? Isnt that the best position to be
in?
Many customers go to great lengths to instruct bidders to submit bids which are
compliant with their requirements and they state that you may be risking
disqualification if you dont follow these instructions.
However, the successful bidders nearly always offer additional alternative
solutions which are technically acceptable and represent even better value for
money. These alternatives are often at a lower price.
If you are not being creative and producing innovative alternative solutions then
you are putting yourselves at a serious competitive disadvantage and are
probably scratching your head trying to work out how you lost the contract and
how on earth a competitor could be so cheap. Well the answer is you are not
comparing like for like and although their price is much lower, so too are their
costs and they probably have a better margin built into their bid than yours!
Most tender and proposal submissions that I have evaluated lack any sort of
innovation and creativity and are virtually identical to their competitors. In this
economy the same old solutions just dont cut it anymore and you need to be
more creative.
Elite Bidders offer the customer alternative ways of achieving their objectives
with faster, cheaper, better solutions. This requires a few things:
A deep understanding of: the customer, the project opportunity and ifpossible your competitorslikely solutions. Note that it is nearly alwaystoo late to obtain this crucial intelligence when the PQQ, ITT or RFP is
issued so start early!
Processes which encourage innovation and creativity and lead to thedevelopment of win strategies and themes which are relevant, beneficial
and attractive to customers.
An organizational culture which embraces transformational change andfocuses on continuous performance improvement to develop solutions
which are faster, cheaper, better and less risky than your competitors and
gives you a competitive advantage. Remember in todays economy
everyone wants more for less!
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When evaluating PQQs, customers are looking for the easiest and quickest way
to eliminate applicants so that they can reduce the long list of potential bidders
down to a short list. The emphasis is on looking for anything that may present a
future risk to the success of the project.
However, when it comes to the next stage, the winning bidder is normally the
one that can demonstrate more value added than the other bidders. It is a
switch of emphasis and requires creativity not just in developing the solutions
but also in the content, writing and presentation of the tender or proposal.
If you want to differentiate your bid and add more value then you have to be
creative and you need to innovate.
This is even more important for framework agreements which run over a number
of years where the customer is relying on the successful bidder to constantlyimprove and deliver more value.
They are under pressure to deliver better value for money and in this economy
you cant stand still for too long.
Some companies need help but if you are one of those then you will be pleased
to know that there are proven techniques which work which can be learnt.
Mistake #3 Failing to differentiate your solutions
When I first talk to potential clients who want to pre-qualify or bid for contracts,I ask them where they think they have a competitive advantage and the
majority either dont know because they have never really given it much thought
before or they say that they are pretty much the same as everyone else but
hope that they are a little bit better.
It will comes as no surprise then that they have only one win strategy in mind
when bidding for contracts: to be the lowest price compliant bid. There is no real
attempt to differentiate themselves and their solutions.
If you are struggling to think of where you can differentiate your company andits services, products and solutions then you may be interested in my next free
guide titled 100 Sources of Competitive Advantage which will be published in
May 2013.
When I start probing I find that every company has a few gems which they take
for granted. Being too modest is a very British characteristic but it doesnt help
you win contracts. Achievements are played down and in most cases companies
have simply not bothered to measure and capture all of the benefits delivered to
their clients yet this is a rich source of material to use in marketing, business
development and bid management.
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One unique source of differentiation is your people. They are totally unique with
a very specific set of personal attributes, values, beliefs, skills, knowledge and
experience. No-one can copy your people and your team.
One of the biggest mistakes that bidders make is a failure to make the skills,
knowledge and experience of their people a central theme in differentiating their
tender from everyone else.
Customers want to know who they are going to be working with, yet you would
be amazed at how difficult it is to establish exactly the names and track record
of the front line team who would run the contract if successful. When I see an
organisation chart with only the directors on it and a set of CVs for only head
office staff then it makes me think that they dont have the right people
available for the contract. Needless to say, these companies pick up few marks
for a section that should be low hanging fruit for most.
The best companies stand out a mile and actually create a unique selling point
out of the strengths of their team, particularly their front line customer facing
staff. They provide not just names but pictures, testimonials from delighted
customers and CVs tailored to highlight the relevance of their skills, knowledge
and experience for the type of work required by the customer.
Senior management and specialist staff are also included on the organisation
charts but they are demonstrably there to support the front line staff with
resources, advice, information and decisions.
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RelationshipsMistake #4 Weak relationships with the customer and their evaluators
Mistake #5 Failing to build trust and rapportMistake #6 Not asking the right questions before the PQQ, ITT or RFP is issued
Mistake #4 Weak relationships with the customer and their evaluators
Twenty years ago, when I had just taken up my first position as a director of acontracting business, I was given a very good piece of advice from an
experienced colleague. He said,
Its not what you know and its not who you know that counts in business, itswhat you know about who you know that really makes the difference!
He explained that you are better off having a smaller number of deeper moremeaningful business relationships than a large number of shallow acquaintanceswho you see rarely and know hardly anything about. He advised that you shouldtry to develop true business friendships based on mutual understanding, trustand a commitment to help each other succeed. I can testify that this has workednot just in business but in my private life too.
Human nature dictates that most of us have a preference for spending time withpeople who we like and trust. In the private sector, customers often decide whothey want to place a contract with before the tender is issued and usually find away to achieve this even if their favourite supplier isnt the lowest price to startwith. In the public sector, such bias is not allowed and evaluators have to be asdemonstrably objective and fair as possible. Nevertheless, in my opinion, Ibelieve that there is still some influence even if only at a subconscious level.
So my message is to target customers where you have a great relationship asthis gives you a huge competitive advantage particularly in the private sector. If
you dont have a close relationship yet with an important potential customerthen start getting to know them straight away and certainly well before the PQQ,ITT or RFP is released as it will be too late then. There are other good reasonsfor early interaction with customers which I will explain later.
Mistake #5 Failing to build trust and rapport
From what I have seen, less than 5% of companies submitting PQQs just dont
bother to build rapport with the customers evaluators and less than 40% of
bidders dont pay much attention to this either. This presents an opportunity for
others.
Most customers in the public sector are faced with a dilemma.
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They are highly sensitive to any claims that they have been biased or have
treated anyone unfairly and as a result it is often difficult to speak to them once
a PQQ, ITT or FRP has been issued. On the other hand they also want to make
sure that all applicants and bidders fully understand their requirements.
The compromise they usually adopt is to stipulate that all bidder questions will
be recorded in writing and are preferably raised by email and that all answers
will be circulated to every bidder unless it is agreed that the subject matter is
commercially sensitive to the bidder raising the question.
This arms length approach underlines the importance of getting to know the
customer before PQQ, ITT or RFP release.
It isnt impossible to build trust and rapport with a customer through written
communication and one should still try but it isnt the same as face to facecommunication.
Fortunately there are still two or three opportunities to meet the customer and
their representatives which should not be ignored. These include pre-tender
open days, mid-tender interviews and site visits.
Not taking up these invitations is foolish as it sends wrong message and is a
missed opportunity to gather intelligence and build relationships.
I know that time is limited and it is difficult to prioritise tasks but even if you
dont think that you need to visit site to assess the work content then think
again.
Its not just about checking the scope of work even though that is really
important. It is also about sending a message to the customer that you are
interested and enthusiastic about their project or framework. This is what most
customers are looking for.
You also miss the opportunity to build rapport and gain a better understanding
of the customer which could give you an edge over your competitors. You may
also find out who your competitors are as customers like to minimise disruptionand take all bidders around site at the same time.
Not building trust
If you dont already have an excellent relationship with the customer then how
do you go about building one? Well, the foundation of all good relationships is
trust. It is that precious and fragile ingredient that takes a long time to build but
can be shattered in seconds and needs to be nurtured carefully.
Trust is also the main building block for partnering and collaborative working. If
you are targeting a framework contract then if you cannot demonstrate that you
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can work collaboratively and develop a mutually beneficial long term relationship
then you have little chance of success.
Partnering has been around for many years but most companies and people are
rubbish at it! I believe this is true for most customers, design teams, contractors
and suppliers.
The problems arise from a fundamental lack of understanding, commitment,
behaviours, skills, processes and tools to make it work. Proper partnering is not
cushy or complacent, it is demanding and challenging, but in my humble opinion
it usually delivers more value and reduces risk for all parties concerned.
Is partnering and collaborative working dead? For some it is but fortunately for
others it is still alive and kicking. Customers who select their contractors,
consultants and suppliers based purely on price are not looking to adopt apartnering approach.
Those customers who are looking to select on best value or the most
economically advantageous bid (which incidentally is the preferred approach of
Government and public sector customers) and require bidders to submit a
quality submission is a signal that they are very interested in how the bidders
propose to add value and manage risk and partnering plays an important role in
this.
What I have noticed is that the companies who score highest on their qualitysubmissions also have a good grasp of partnering and have processes in place to
help them. They can also provide examples which demonstrate their
commitment to make it work.
I use a simple but comprehensive and effective system for helping my own
clients introduce partnering to their projects, frameworks and business. It
produces results consistently and also creates great content to use in PQQs, ITTs
and RFPs.
Mistake #6 Not asking the right questions before the PQQ, ITT or RFP
is issued
How much do those responsible for business development and capture know
about the contracts they are pursuing? Not enough is the answer in the vast
majority of cases.
Thats not being disrespectful to those who are working really hard to generate
leads and bid opportunities, it is just that many fall into the trap of going for
quantity rather than quality.
I know because I have made that mistake too. You are under pressure to justify
your position and are paranoid about keeping the estimating, pricing or
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quotations team fed with a continuous flow of bids. The biggest fear for a
business development manager is to have a team of estimators sat in the office
doing the filing! Mind you, that is what they would be better off doing rather
than bidding for contracts they cant win or cant make a profit on.
So business development managers are paranoid about generating quantity and
for many the longer the list of bids the better as no one can say that you arent
doing your job.or can they?
My advice is not to be a busy fool. Hold your nerve. Be more selective. Reduce
the number of contracts you are pursuing and spend more time and effort on
those so that you can dig deeper. If you have better intelligence than your
competitors and an earlier and better understanding of the customers needs
then you have more time to develop innovative, creative and effective win
strategies and it will improve your success rates.
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ProcessesMistake #7 Unstructured business development,captureand bid processes
Mistake #8 Insufficient planning and preparation
Mistake #7 Unstructured business development, capture and bidprocesses
It is a mistake if you dont have or are not following a structured process for
identifying, qualifying and capturing opportunities to bid for contracts.
A scatter-gun approach is ineffective and wasteful. You need to be really focused
and realistic so that you invest your time and money on the opportunities where
you have the best chance of winning and making a profit!
In Mistake #6, I recommended that business development managers should be
selective and start working on opportunities which will generate the best results
as early as possible. There is a lot of work to be done to build relationships and
position your organization with the customer and to gather vital information
about the customer, the opportunity, the procurement process and wherepossible the likely competition.
All of this information has three uses:
It will help you to make good decisions on whether to commit furtherresource to continue pursuing the opportunity or switch to others which
are more attractive.
It will potentially provide you with a competitive advantage over yourcompetitors.
It will allow time for you to develop innovative win strategies.Elite Bidders have bid-no bid procedures, their win strategies are in place well
before the bid arrives on their desks, they have built great relationships with the
client and their advisors and they have thought carefully about what it will take
to win a contract.
They also plan the writing and production of their bid submissions thoroughly.
I have attendedkick-off meetings for PQQs, tenders and proposals and noticed
the following mistakes being made:
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Not enough time is allocated for the meeting; limiting it to a very quickallocation of tasks and little more.
Participants are not available or not well enough prepared. Win strategies and win themes are not fully explored and often not even
discussed.
The team is not looking at the PQQ, ITT or RFP from the customersperspective and is not spending the time to determine what it will take to
score maximum points for each question or section.
A content plan has not been prepared to guide bid writers and authors. A validation and review process is not discussed in detail. Usually just a
date is agreed for the final review.
The consequences of these mistakes is that those who have been allocated the
responsibility of writing answers to questions asked in the PQQ, ITT or RFP or
writing about the solutions proposed to meet customers requirements have
nothing to guide them and there is nothing in place to determine whether they
will achieve maximum scores for what they have written.
In these circumstances writers are left to their own devices and find it difficult to
know what to write about and will waste time in the early stages trying to figure
it out for themselves.
This can put deadlines in jeopardy and adversely affect the quality of what has
been written. This is exacerbated where there are multiple bid writers and the
quality of writing and content may be very patchy indeed.
If the review meeting takes place only a couple of days before submission then
there may be a lot of rewriting to do. This means that someone has to work
through the night to rewrite the document and final printing and assembly is
done at the very last minute and that is when errors occur.
Mistake #8 Insufficient planning and preparation
When I was at school I was late for an English lesson. As a punishment the
teacher made me write an essay with the titleTime waits for no man. As
punishments go, this was one of the least painful, but the most effective in
terms of shaping my future attitude.
When evaluating PQQs there is always one organisation who tries to submit their
PQQ after the deadline. The person responsible claims to have seen the advert
after everyone else, or is the victim of exceptional circumstances.
Do you know anyone like this?
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They are the ones who leave it to the last minute, who always blame others for
their lateness and are always asking for an extension of time.
Some will even resort to manipulating the truth and blaming the post or the
customer for losing their submission!
What does this say about the person and the company? Enough said.
The answer of course is to treat every PQQ, ITT or RFP as a mini-project. Start
early, plan well; allow sufficient time for writing, editing, reviewing, rewriting,
polishing and assembly of documents. Allocate tasks to those who have the
capacity, knowledge, experience, skills and commitment to do the job well.
Like projects, producing PQQs, tenders and proposals is a team effort and
requires a bid manager with good leadership and project management skills.
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PQQ and Bid TeamsMistake #9 PQQ and bid teams under resourced
Mistake #10 Little commitment shown by key contributors
Mistake #9 PQQ and bid teams under resourced
Hands up if you have objectively assessed how long it will take to create awinning PQQ, tender or proposal submission and then either you or your bosshas halved it!
Maybe you have been told that you can only spend so much time or money. Is itbecause you are juggling other jobs or because the boss is more concerned withcost than quality? What tends to happen when you have time and moneyconstraints is any or all of the following:
Short cuts are taken and you resort to cutting and pasting from previoussubmissions more than you would like to.
You miss out the crucial planning, strategy and review steps. You extend your working day and week. If this happens regularly then you
will end up exhausted and make mistakes.
The review of your work is done at the last minute leaving little time forany amendments.
Your success rate suffers unsurprisingly.I am not advocating spending more money overall. I am just saying that youshould be more selective and spend more time and effort on fewer opportunitiesand get better results. It is better to spend twice as much on doing the job
properly and winning two out of three tenders than trying to take short cuts andending up winning one in six.
Mistake #10 Little commitment shown by key contributors
Engineers and surveyors make up 90% of the construction, built environment
and IT sectors that I cover. I would suggest that none of them selected their
careers and joined their professions because they enjoy writing! Most of them
hate it, which is just as well as I would be out of a job!
People generally prefer to use their time doing things they enjoy which is why
problems occur when you allocate writing task to subject matter experts whodont like writing.
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I have found on numerous occasions that despite continued promises that they
will complete their writing tasks on time, the work is either late or has been
rushed and is therefore of poor quality and has to be completely rewritten.
Occasionally the work doesnt arrive at all!
There are 101 reasons why it was not their fault, the most popular being that
they had to deal with an urgent request from a customer. Some of these
excuses are genuine, but when you analyse it, it is usually the same people
making the excuses. They dont want to complete the tasks allocated to them
because they hate doing it.
The answer is to create a team of subject matter experts and writers where the
writer interviews the subject matter expert and extracts all of the rich and
relevant content for the submission and then uses their writing skills to create a
submission which articulates the strengths of the organisation and the benefits
of the proposed solutions.
It is rare to find a bid writer who has the subject matter expertise and content
knowledge to produce top class submissions on their own. So it is essential that
they have excellent communication skills and are able to ask the right questions,
actively listen to answers from subject matter experts and then use this
information properly.
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UnderstandingMistake #11 Not understanding customers needs,
standards, expectations, constraints and concernsMistake #12 Misinterpreting the procurement process,
instructions, questions, scoring and selection criteria
Mistake #11 Not understanding customers needs, standards,expectations, constraints and concerns
Every customer is different and more often than not there are several
stakeholders who will all be affected by the project(s) and can have a big
influence on the selection process. They all have their own values and beliefs,their own principles and preferences, their own needs and wants; some may
have strict policies or very specific requirements.
Many projects have awkward constraints where difficult trade off decisions have
been made to enable the project to proceed.
I have seen some tenders where all of the above is captured and communicated
clearly to bidders in the documentation provided. In others, it is a little more
difficult to tune in to exactly what the customers want and need, what they are
trying to achieve with the project and what they are most worried about.
Irrespective of this there is usually a wide gap between those bidders who
understand what the customer wants and those who dont have a clue and are
often baffled by the low scores they receive from evaluators when they submit
generic, irrelevant answers to questions raised.
Finding out what each customer really wants should not be left to chance. Earlier
in this report I have discussed the mistake many make in not spending enough
time gathering vital intelligence about the customer and the opportunity before
the procurement exercise starts. When you have this information it allows you to
develop answers which address all of their concerns and solutions which add realvalue at an affordable price.
Mistake #12 Misinterpreting the procurement process, instructions,questions, scoring and selection criteria
One of the more obvious mistakes that bidders make is failing to ensure that
they really understand the questions.
Some questions, requirements or instructions prepared by customers are
ambiguous. If in any doubt, ask a colleague or a consultant for their
interpretation or seek clarification from the customer. If you misinterpret justone question or requirement it could eliminate you from the competition.
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When helping my clients to win contracts, I often have a different interpretation
on what each question means and what will pick up maximum scores. I like to
think that it is because I work on both sides of the fence and have a unique
insight into what end-user customers are looking for.
This undoubtedly helps but more significant is the fact that by combining my
ideas with those of my clients own team we jointly arrive at the right
interpretation.
I think that in most cases bidders know when they are struggling to grasp what
the customer is looking for. However, rather than seeking help or clarification,
they plough on regardless. The results can lead to answers which are too short
and lack substance or are too long and full of waffle. Neither demonstrates
understanding.
In some extreme cases, bidders have simply provided no answer at all or have
even cut and pasted an answer from another pre-qualification questionnaire or
tender in the hope that some of it may pick up some points!
The funniest answer I have seen was from an architect who didnt understand a
question about equal opportunities and diversity and rather than seek
clarification he simply answered Well,youve got me there!
At least he was honest and proved that he had a good sense of humour but
needless to say he didnt pick up any points for that particular question.
I have seen some fairly ambiguous and nebulous questions being asked by
customers which make it difficult for bidders to answer. In these situations it is
important to contact the customer to establish exactly what they mean.
The customer should then distribute their answer to all bidders to ensure a level
playing field for all.
If you dont do this then it could become a bit of a lottery with some bidders on
the same wavelength as the customer and some not. Make sure you dont fall
into the latter category and remember...if in doubt...ask for help!
There is information missing from the submission
I know they have asked for it but lets hope that they dont realise its not
provided!
Wrong! If information has been requested then there is probably a very good
chance that marks will be awarded for the information. Failure to produce the
information will result in the dreaded nil points!
Omissions raise question marks about the suitability of the bidder.
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The most common omissions are:
Financial accounts (they must be weak?) Organisation charts and CVs (they dont have the right people available?) Evidence of experience or performance (they havent actually got anything
worth submitting?)
Its not rocket science is it?
Why havent they followed the instructions?
The classic mistake made is to ignore what has been specifically asked for or
provide a slight variation or your own version of what you really think the
customer wants. In my experience, 40% of submissions are guilty ofmakingtoo many assumptions.
Bidders often:
Provide no answer at all to a question and forfeit any chance of a mark. Ignore the word limits applied to some questions and waffle on forever
making the job of the evaluator even more time consuming which doesnt
endear them to a time pressed evaluator and can incur penalty points.
Use a font size 8 so they can cram more information into a page whenthere is a limit on how many pages you can use for an answer.
o This is great if the assessor has brilliant eyesight and only has onesubmission to read that day (or night!)
Do not complete the pricing document accurately.o When a pricing document has been put together the customer
wants to compare like for like. I know that this doesnt suit each
companys method of estimating or pricing and the temptation is to
do it your way but this could mean that the customer will have tomake assumptions and may make adjustments and allowances
where they think appropriate. This is rarely to the advantage of the
bidder who hasnt followed the instructions.
Misunderstanding of the customers selection criteria and scoring
mechanism
Many efforts by bidders are misplaced because they fail to really understand
where they can pick up the marks when completing a quality submission.
There is plenty of low hanging fruit that goes begging. You just wouldnt believe
how many companies miss easy points on questions in the quality sections.
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On the other hand, I know of many companies who have submitted a great
quality submission packed with benefits and added value only to totally misread
the importance of the trade off between quality and cost. This is where it pays to
know the customers priorities and objectives.
How many times have you put forward a fantastic team and a comprehensive
approach to the project and then lost the contract because your people costs or
preliminaries and project management allowances are too high?
Its an art to get this balance right isnt it?
Misunderstanding of the procurement process
Some companies that I have come across do not understand the procurement
process being followed nor the procurement rules and regulations which drivethe procurement approach.
Some of the less experienced companies are just not aware of what it will take
to pre-qualify for tender short lists and make assumptions which land a fatal
blow to their bid.
The most common mistake from experienced companies is complacency or over
confidence. They make the assumption that the threshold score for the quality
submission at pre-qualification stage is set much lower than it is and that they
will easily qualify for the next stage and be asked to submit a tender. This is
particularly true of incumbent suppliers who may have worked on a framework
contract with the customer over the last four years. The standard of PQQ
submissions is rising every year and what was good enough to qualify four years
ago is just not good enough today.
Their blas approach is reflected in their submission which is usually lacking in
both quality and quantity and does not pick up enough marks.
I have had some bidders come back and ask if they can have a second chance
and resubmit their submission. They find it difficult to accept that theyve blown
it and fail to appreciate or understand that with public sector procurement thescoring criteria and evaluation has to be transparent, fair and objective and no
one is given more favourable treatment.
If you are in doubt, then ask for help.
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Strategies and TacticsMistake #13 Being outsmarted by competitors
Mistake #14 Pricing tactics which backfireMistake #15 Late surprises
Mistake #16 Running with the wrong partners
Mistake #13 Being outsmarted by competitors
Failure to notice loopholes and flaws in the customers selection process or
documentation could work to your disadvantage.
I have a sad story to tell which I picked up when conducting a post tender
critique of an unsuccessful bid prepared by a contractor. They did everything
right and submitted the best quality submission and a very competitive price but
because of the way that the customers scoring system worked it meant that
they came second overall to what I would call a very crafty piece of opportunism
from a competitor.
The quality section was worth 60% of the total score and the pricing section was
worth 40%. The flaw was in the pricing section as the customer bizarrely only
required the bidders to price the on-site overheads (preliminaries). This created
an opportunity to gain a disproportionate advantage by submitting a very low
price for an element of the contract that would make up less than 10% of the
overall costs and would not really affect their profitability that much as there
would be plenty of opportunity for them to legitimately build the missing costs
into the labour rates or the general overheads when pricing the work after
appointment!
The customer admitted afterwards that they didnt notice the flaw until it was
too late and their hands were tied. They placed the contract with the wrong
company and lived to regret it afterwards.
If one of the bidders had noticed the flaw and brought it to the attention of the
customer at tender stage then they could have issued an amendment or
correction to all bidders to ensure a level playing field.
The alternative of course was to do what the winning bidder did and submit a
tactically low price and keep quiet hoping that none of the other bidders notice
the unfair advantage that could be gained!
However, if you are in the business of retaining customers and developing long
term relationships then you might want to think carefully before you employ thistactic.
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Part of the problem is not taking time to collect and analyse intelligence about
your competitors to forecast their likely tactics and taking action to offset any
advantage that they may gain from these tactics. Look at the project through
your competitors eyes: what would you do in their position? How can youcounter their approach?
Outsmarting your competitors
The key to winning profitable contracts is innovation and creativity. The best
deal for a customer is the one which adds the most value and produces the least
risk relative to the price.
The factors that create value and reduce risk are different for each customer and
each project so your solutions need to be tailored each time.
You can only come up with innovative tailored solutions which are relevant and
attractive to customers if you really understand their needs, constraints and
objectives.
If you know more than your competitors and use thatinformation advantage
early enough you will have a significant advantage over your competitors and it
will be their turn to scratch their heads and wonder what you did to win the
contract.
Mistake #14 Pricing tactics which backfire
Using a non-compliant low price tactic to get a foot in the door can backfire if
the bid is heavily qualified and the solution is technically unacceptable.
It depends on the customer, but some will actually penalise bidders who put in a
technically unacceptable low price hoping to talk it up at a later stage. Others
may still want to discuss your bid so you have to pick the right customer to use
this tactic with.
Some customers have strict procedures for dealing with this situation and you
will be faced with the choice of standing by your price and confirming totalcompliance with the customers requirements or withdrawing. Neither may be a
satisfactory conclusion to all of the efforts you put into the tender so you have to
weigh up the risks.
As an ex-contractor I do accept that you need to explore all avenues to use a
tactic or approach which gives you an advantage. You want to push it to the limit
without risk of being penalised.
My proven contract winning system has been developed using many years
experience of what works and what doesnt work. The trick is selecting the right
tactic for the right situation.
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Mistake #15 Late surprises
I have seen bidders snatch defeat from the jaws of victory by introducing a late
surprise.
For example, in the negotiation stage, after the bid has been submitted, they:
Switch the proposed project team. Try to change the price or conditions of contract. Introduce a JV partner or switch key partners. Reduce quality.
Ask for a later start and a longer period to complete the works.
Declare that they are now going to sub-contract out a significant part ofthe work.
Pass significant risks back to client.Customers dont like surprises, especially when they have already evaluated the
promises and proposals made earlier and have probably eliminated other
companies who scored just slightly lower.
You could easily find yourself disqualified or reassessed and eliminated through alower score. Is it worth the risk?
When you think about it, how can the customer trust you again? Wont they
think that you tried to mislead them or will they think that it is just part of the
game that all bidders play? It depends on the customer.
Mistake #16 Running with the wrong partners
If one member of your team is much weaker, it dilutes your strengths and
introduces risk for the customer. If you are not a good match for your partners it
shows up clearly and creates doubt in your teams ability to perform.
Ideally you want partners who are the best at what they do, who have the
capacity to deliver, have relevant experience and competences, are capable of
creating competitive and attractive solutions, can work collaboratively for mutual
benefit and preferably have a successful track record of working with you and
the customer before.
It doesnt go down too well with customers if you switch partners after the
tender has been submitted and evaluated.
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EvidenceMistake #17 Performance data is threadbare
Mistake #18 Aspirational answersMistake #19 Poor references
Mistake #17 Performance data is threadbare
Have you ever received low scores for the performance management section of
pre-qualifications and tenders? Have you wondered why this is?
If this has happened to you then you already know the answer, I hope. You cant
pick up many marks if youve got very little (or nothing) to show the customer.
In my experience I would say that 8 out of 10 bidders have poor records when it
comes to measuring and capturing performance data and 3 out of 10 have none
at all.
Most bidders submit:
no data at all, just the little bits of data they have, or they try to bulls**t their way through this section.
Needless to say, they absolutely bomb on this aspect of their submission. It can
often make the difference between overall success and failure.
Designing and implementing a simple, easy to use performance management
system that generates a gold mine of useful data which you can use in your
tenders is a relatively straight forward process and guess what?....it improves
your performance and profitability as well! Despite this, so few organisationshave one.
Mistake #18 Aspirational answers
I often see submissions which are well constructed and in tune with what the
customers are looking for but despite this the bidder cant back their answers up
with evidence of actual achievement.
The answers therefore come across as aspirational. They give the impression
that this is what they would like to do rather than what they have actually done.
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Customers evaluators are looking to award marks for both understanding and
evidence with an emphasis on the latter as they want to see proof and it adds
credibility to your bid.
You might say We havent got the material or the evidence! From my
experience of helping companies win contracts, I quite often hear this but more
often than not the evidence does exist. It is just a case of asking the right
questions and looking in the right places to find the little gems of information
and data that will pick up the marks.
I have created a comprehensive set of questions for the more common types of
questions asked and use these to help my clients realise that they do in fact
have some great material. They just need to implement a process for
systematically capturing useful material or data on every project and building up
a library of well written case studies that can be used on PQQs, tenders and
proposals.
Another common mistake that organisations make is to use evidence of
achievements from projects which are not relevant to the type of work required
by the customer. A fantastic case study for a new factory is not really that
relevant for the refurbishment of an occupied housing estate is it?
Mistake #19 Poor references
Virtually all customers ask for references from previous customers, usuallythree. They carry a significant proportion of the total scores so there is a
reasonable expectation that you will provide the contact details of referees who
fulfil the following criteria:
They are happy with the services and products that you provided for them They purchased your services and products recently (i.e. within the last
three years)
Their projects were of a similar character and size to that required by thecustomer and are therefore relevant to the bid
The referees have already given permission to be approachedIf any of these criteria are not met then it may be better not to include them at
all as they may be a liability!
I have sometimes been amazed at the choice of referees made by some bidders
as the reference is so poor. If you have little alternative, then it may be better to
use someone who will give you a good reference even though the projects you
have completed for them have little in common with the project you are bidding
for. If in doubt seek a second opinion.
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Content and PresentationMistake #20 Demonstrating how your solutions will add value and reduce risk
Mistake #21 Features and benefitsMistake #22 Poorly written and poorly presented documents
Mistake #20 Demonstrating how your solutions will add value andreduce risk?
Customers are interested in how you will add value and reduce risk relative to
the price. It is therefore a mistake if the things that are most interesting andbeneficial to them are buried in your PQQs, tenders and proposals making itdifficult for the customers evaluators to find them and award marks.
The purpose of a pre-qualification process is to reduce a long list of interestedapplicants down to a short list of suitably qualified bidders by eliminating thosewho present the highest risks of not achieving the project objectives. Thereforethe emphasis is on risk reduction and your content needs to reflect this.
However, when it comes to the next stage, the contract is normally awarded tothe bidder who can demonstrate the greatest value for the customer. So think
about where your solutions create value. Dont hide this content in amongst lotsof detail, make it stand out. Make it easy for the evaluators to understand thevalue added and award top marks. If necessary spell it out and quantify thevalue created for the customer.
A poorly presented submission will lose you marks but the quality of the contentof the material used in your submission is what picks up marks. So get thisright!
Mistake #21 Features and benefits
It is a mistake to only write about the features of your services and solutions.
They are important for the customer to understand what you are going to deliver
but they are more interesting, meaningful and powerful if they are linked to
benefits and outcomes that are highly relevant to the customer.
This is critically important when writing bids and proposals because evaluators
will award higher marks for benefits and outcomes rather than features and
inputs.
One area where I find this more apparent is in case studies. Most case studies
which I have read are boring because they just contain an unimaginative
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photograph, some facts about value, start and finish dates, names of customers
and their advisors and a list of services provided.
There is no attempt to capture the attention of the reader with a description of
what constraints and risks were managed, how creative solutions were found to
resolve problems and more importantly how benefits and value were delivered
for the customer. There is also no attempt to articulate this valuable information
in the form of customer testimonials which are very persuasive.
Mistake #22 Poorly written and poorly presented documents
Some submissions are an absolute joy to read and are easy to assess as the
information is set out so clearly and is instantly accessible.
Others, however, are a nightmare and my heart sinks when I see them becauseI know that they are going to take four or five times longer to read and assess
than the best.
When you are an evaluator and you have only 3 to 4 days to go through over
100 pre-qualification submissions then it can be irritating to say the least when
applicants make it tough for you.
Whilst I try to be totally professional and assess each submission on its merits, I
am sure that at a subconscious level I am possibly a fraction harder on the
poorly presented submissions.
It is not my intention to go into detail in this report about how to improve the
quality of your bid writing as there is more to this subject than most people
realise. All I will say is that it does make a difference and I would urge you to
get some training and help if you need it or ask someone to edit what you have
written.
Failing to clearly state the reasons why the customer should select you
Some bidders get so close to the process of answering the questions and
providing information requested that they forget that they are trying to persuadethe customer to choose them in preference to their competitors.
As a consequence, their presentations come across as very stuffy and formal
and do not press the emotional buy buttons that we all have when choosing
which service or product to buy.
People make decisions using their emotions first and then try to justify these by
finding the logic to back it up.
If you only rely on appealing to a logical analysis of your bid then you may not
position yourself at the front of the queue!
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There is a real skill in the subtle art of persuasion using both written and spoken
words and one that the most successful bidders have cracked.
Happily, you too can develop these skills.
Presentation of documents
The way you present your bid documents says a lot about your organisation andcan certainly affect the customers perception about your professionalism andenthusiasm for winning the contract.
Elite Bidders put a lot of effort into creating interesting and attractive documentswhich really stand out. This takes experience, creativity, time and a little bit ofinvestment but it is worth it. Seeing what they produce is a real eye opener.
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Post-tender Interviews
Mistake #23 Snatching defeat from the jaws of victory
Mistake #23 Snatching defeat from the jaws of victory
It is a mistake to underestimate the importance of the tender interview and oral
presentation.
In my own experience as a procurement consultant running the interviewprocess, I have learnt one thing and that is to expect a huge gap in the
performance of bidders at the interview.
You just cannot predict the quality of a presentation or how well a bid team will
handle a question and answer session.
I have had high expectations for some companies based on the quality of their
written submissions but have been really disappointed at how badly they have
come across at the interview.
I know nerves can play a part but as an experienced interviewer I can usuallyput the bid team at ease and give them every chance to show their best if they
are well enough prepared.
These are all examples that I have seen of the things that bidders just shouldnt
do, such as:
Turning up at the wrong office Arriving late Bringing people who dont speak Trying to take over the chair of the interview Waffling and Bulls**ting Leaving key people behind Bringing the wrong people Dressing inappropriately Disregarding instructions
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Over-running their time slot Death by power-point
At times, my colleagues on evaluation panels and I have been delighted andsurprised at how well some companies have performed at the interview and you
are left with a strong feeling that you really want to work with these people, not
just because you like them but also because you are impressed with their
capabilities and how well they understand the customers needs.
There are things that bidders should do to give themselves the best possible
chance of success. This is an area that I advise and coach bidders on but is a
huge subject in its own right so I wont go into detail in this report. What is
important is that you prepare properly, practice, be clear on the messages you
want to put across and create a favourable first impression.
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SummaryWhat are the causes?
What can you do?
The Elite Bidders System
What are the causes?
There are many factors that cause bidders to make mistakes. This is not an
exhaustive list but includes most of the more common causes:
1. Ineffective business development, capture and bidding system.2. No bid-no bid process.3. Not being selective and investing enough time in gathering vital
intelligence.
4. Busy fools.5. Lack of preparation and planning.6. Poor win strategies.7. Under resourcing.8. Poor teamwork and commitment.9. Lack of ideas, innovation and creativity (same old, same old).10.Not knowing what excellent looks like.
11.Ineffective review process.
12.Inexperience and misunderstanding.
13.Poor writing, presentation and interview skills.
14.Insufficient evidence.
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What can you do?
So what can you do to improve your chances of success? Again this is not an
exhaustive list but if you take these actions you will definitely get better results:
1. Cut out the mistakes.2. Improve knowledge and obtain training to develop understanding
and skills.
3. Obtain guidance and advice to create a clear understanding of howyou can improve your performance and create competitive
advantage and then take whatever action is necessary to ensure
that you arematch fitfor future opportunities.
4. Improve your business development, capture and bidding system.5. Focus on realistic targets: ones you have a great chance of winning.6. Gather intelligence on your customer, their procurement process,
the project opportunity and your competitors.
7. Get closer to your customers and position your organisationfavourably before the tender is issued.
8. Plan your win strategies, tactics and approach preferably before theinvitation to tender or request for proposal arrives. Ask for a second
opinion to make sure you have not missed any opportunities to gain
an advantage.
9. Obtain a second opinion on the interpretation of the customersrequirements, instructions and questions as soon as the tender
arrives.
10.Create a tender outline and content plan which includes instructions
to the bid team on everything you need to score maximum scores
for each section or question.
11.Review and validate your content plan before you start writing.
12.Hire in expertise to write and/or manage your bids if you do not
possess the right skills and experience.
13.Get someone to provide an independent critique of your draft
submissions in good time before you submit your bid.
14.Invest time and money to get the presentation of your bid
documentation right and plan for this from day one!
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The Elite Bidders System
Preparing pre-qualification questionnaires, tenders and proposal can be very
expensive and make up a large proportion of your overhead expenditure.
So please....promise me....dont pour good money down the drain.
You just need a simple repeatable process to follow to dramatically improve your
conversion rates and chances of success.
Suppose there was a system that takes every scrap of guesswork out of the
process. An easy to follow and proven system that allows you to:
Write better quality submissions and faster Create more powerful presentations Multiply your conversion rates at pre-qualification and tender stages Know exactly what to say for each question Completely stand out in your market Create a trusting relationship with your prospective customers Grow your business significantly And much more
Well, I believe that we have this system in place already. We call it our Elite
Bidders System. It has been road tested and improved to deliver spectacular
results consistently, year after year. Over a ten year period our success rates
are 95% for PQQs and 66% for tenders and proposals.
To date we have only offered the system as part of our bid management and
business development services to a very select number of private clients but
have decided that the time is now right to introduce it to a slightly wider number
of clients as long as there are no conflicts of interest with our existing clients.
We have a maximum number of clients in mind as we dont want to dilute our
efforts by taking on too many. We are also conscious that by restricting the
numbers to an exclusive group it makes it more valuable to the members of that
group.
If you want to be one of the first to gain full access to our system then book a
place on either our One-to-One Coaching and Mentoring Programme or our
Mastermind Group, details of which can be found in the training section of our
websitewww.winthatcontract.com.
http://www.winthatcontract.com/http://www.winthatcontract.com/http://www.winthatcontract.com/ -
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Both of these programmes will take delegates through every step of the Elite
Bidders Systemand reveal the insider secrets from customer procurement and
evaluation teams.
Alternatively, for a less detailed insight into this system then book a place on
one of the training courses to be held in London. You will receive a four page
overview and action plan for the system.
We are expecting the training courses, mentoring programme and mastermind
group to sell out very quickly and places will be offered on a first come first
serve basis.
You will be sent details of the courses and programmes by email very shortly
and can also find them in the training section onwww.winthatcontract.com
Until then, I genuinely hope that you have found the contents of this special
report of value and if you have then I would be really grateful if you would do
two favours for me in return...
1. Send an email [email protected] tell me the biggestchallenges or obstacles that you are facing when bidding for contracts and
give me some feedback on what you thought of the report and how you
will use the ideas presented.
2. Recommend the report to colleagues and connections by email or on yoursocial media networks by sending them a link to the download page on
our website so that they can sign up for their copy too. The link is
www.winthatcontract.com/23biggestmistakesthatbiddersmake
Thank you so much in anticipation and I look forward to speaking to you soon.
Best wishes.
David Harrison
www.winthatcontract.com
http://www.winthatcontract.com/http://www.winthatcontract.com/mailto:[email protected]:[email protected]:[email protected]://www.winthatcontract.com/23biggestmistakesthatbiddersmakehttp://www.winthatcontract.com/23biggestmistakesthatbiddersmakehttp://www.winthatcontract.com/http://www.winthatcontract.com/http://www.winthatcontract.com/23biggestmistakesthatbiddersmakemailto:[email protected]://www.winthatcontract.com/