Tender Winning Strategy

A structured approach to improve your chances of winning government tenders. Follow this workflow from pre-qualification through bid submission.

Process Overview

The bidding process typically flows:

1. Pre-qualification—Meet eligibility and get shortlisted
2. Tender summary—Prepare tender-at-a-glance with financial focus
3. Decisions—Bid/no-bid, JV, subcontracting, method
4. Site visit—Physical inspection and access assessment
5. Site investigation—Collect rates, labour, materials, plant data
6. Schedules—Construction, cash flow, labour, plant, subcontractors
7. Rate analysis—Operational, unit rate, or combined
8. Bid price—Fix markup and compute final price
9. Submission—Technical and financial bids before deadline

Use our EMD Calculator and Bid Price Calculator to prepare accurate amounts.

Tender-at-a-Glance: 10-Point Financial Summary

Before diving into quantities, prepare a summary highlighting financial implications:

#	Item	Why it matters
1	Client, consultant, architect	Payment history, dispute record
2	Commercial terms	Contract type, risk sharing
3	Mobilization, plant, material advances	Cash flow and interest
4	Taxes and duties	GST, local taxes, exemptions
5	Payment terms	Stage payments, retention, delay risk
6	Escalation, LD, bonus	Price adjustment, penalties, incentives
7	Arbitration and dispute resolution	Jurisdiction and cost
8	Insurance	Requirements and premium
9	Site facilities	Power, water, storage—included or not
10	Client-supplied materials	Scope and rates

See our Tender-at-a-Glance Checklist for a printable list.

Key Decisions Before Bidding

1. To bid or not to bid

Evaluate:

• Fit with your capacity and experience
• Win probability vs effort
• Workload and resource availability

2. Bid alone or in joint venture

• Large or complex projects may need JV partners
• Spread risk and complement capabilities
• Ensure clear JV agreement before bidding

3. What to subcontract

• Identify items suited for subcontracting
• Obtain sub-bids in time
• Factor subcontractor margins into your cost

4. Construction method

• Choose the most economical execution approach
• Match equipment and labour to site conditions

Site Visit and Investigation

Site visit checklist

• Site description and topography
• Positions of existing services
• Ground conditions
• Labour availability nearby
• Security and law-and-order
• Access (road, rail, etc.)
• Water and power availability
• Waste and earth disposal options
• Demolition or temporary works near adjoining structures

Detailed site investigation (13 areas)

1. General site information
2. Taxes, duties, and tariffs
3. Laws and regulations
4. Meteorological data
5. Access (road, rail, air, water)
6. Public utilities and services
7. Material availability and rates
8. Site topography
9. Basic inputs for material rates
10. Site facilities
11. Labour availability and rates
12. Subcontractor availability and rates
13. Plant and machinery availability and rates

Schedules Before Pricing

• Construction schedule—Quantities on bar chart, milestones
• Cash flow—Inflow (contract) and outflow (labour, vendors, subs)
• Labour schedule—Skilled and unskilled by phase
• Plant schedule—Equipment required and duration
• Subcontractor schedule—Scope, rates, timelines

Rate Analysis and Bid Price

• Use operational, unit rate, or combined estimating
• Total cost = Direct (DC) + Indirect (IC)
• Bid price = Cost + Markup; markup can be on-cost or off-top

Use the Bid Price Calculator with GST and TDS to get the final figure.

Further Reading

• Contractor Bidding Process—Full step-by-step workflow
• How to Calculate Markup—Factors and formulae
• Tender-at-a-Glance Checklist—Printable checklist