Winning a tender is not just a matter of price. Although many people believe that the contract always goes to whoever offers the lowest bid, the reality is more strategic.
Each tender has award criteria that are detailed in the specifications. They typically combine factors such as:
-
Price: Very important, but not always decisive.
-
Technical quality: How you will execute the work, your methodology, resources, and added value.
-
Delivery deadlines: Delivering quickly and efficiently earns points.
-
Enhancements or innovation: Any proposal that exceeds the minimum requirements adds an advantage.
-
Extra criteria: Sustainability, social inclusion, or previous experience, depending on the contract.
Usually, the Administration assigns points to each criterion, and the bid that achieves the highest score wins the award (award criteria found in the specifications along with the calculation formulas). That is why a cheap proposal that is unclear or lacks technical support can lose to one that is slightly more expensive but better structured.
The secret of companies that consistently win tenders is perfectly understanding what the Administration values, prioritizing the criteria with the most weight, and presenting a clear, complete, and well-justified bid.
