Winning formula

Creating a bid, winning a tender and making it profitable is a careful balancing act. Anyone is capable of undercutting the competition but winning a tender by simply reducing profit margin is a false economy. It pays to put in the groundwork. Accurate estimates are crucial as they promote trust, facilitate project planning, guarantee cost effectiveness and ultimately support the success and expansion of plumbing firms.

There are several ways in which plumbing and heating installers can find out about tenders, from online portals such as Contracts Finder, local authority websites and trade association newsletters, such as those shared by the CIPHE.

“Many sole traders aren’t even aware these platforms exist, or they’re overwhelmed by how formal and complex the tendering process looks,” points out Christopher Flaherty, director of Vietec Heating and a CIPHE member. “More simplified and guided access to these opportunities, ideally with some form of mentoring, would really help smaller businesses get involved.

“In my experience, not knowing how to sell your value in writing – especially if you’re used to working with your hands rather than behind a desk – is a huge hurdle. There’s also confusion about how much detail to include and how to make your business stand out.”

Bid and tender writing is not generally covered on plumbing and heating courses, but it is an important skill for any contractor looking to grow their business and win work – particularly government contracts. Generally, contractors learn how to write bids on the job, or employ the services of bid and tender writers to do it for them. Some contractors employ a bid writer as part of their team or train an existing office member.

“When I trained to become a plumber, the focus was entirely on technical skills,” says Flaherty. “Tendering, quoting, writing business plans or marketing just wasn’t part of the course. This creates a big gap once you’re qualified and trying to run your own business. This is a huge missed opportunity. Many of us leave training highly skilled in our trade, but unequipped to run a business or compete for larger contracts. More business-focused training options should be offered, even as add-ons or short courses.”

Common errors

Not providing enough evidence or proof points to back up claims in bids is a common error. Procurement personnel are smart and know that businesses can promise anything, so engineers need to include evidence and quantify as much as possible in order to score well and win.

“While it’s easy to cut and paste general information into your tender or bid, the procurement personnel will see it as marketing material and it generally will not help you score well,” says Jason Cooney, director at Tsaks Consulting. “You need to tailor your response to the specific project, or the works for the tender or bid, and tailor all of your responses to the needs of the client.

“Only bid for contracts and frameworks you have a chance of winning. You need to have a robust bid/no bid process and only bid for contracts and frameworks where you have a reasonable chance of success and can comply with all the mandatory criteria.”

Social value questions

Winning public tenders often relies on the ability to demonstrate both the capability to deliver and the positive impact the business can create for the wider community. Therefore, it’s important to understand the contractor’s priorities. Carry out some background research on the commissioning body (e.g. local council, housing association, NHS trust), identify what they prioritise and tailor your response accordingly. Examples include local economic growth, community health and wellbeing, environmental sustainability and social inclusion.

“Social value is a tough area for small businesses because it’s not always clear what’s expected,” says Flaherty. “A good way to approach it is by focusing on what you’re already doing for the community – for example, taking on apprentices, using local suppliers, supporting local charities or working on energy-efficient solutions. The key is to explain the real-world impact of your work and how it benefits people beyond the customer. That said, clearer guidance and examples would help tradespeople respond more confidently.”

When writing a bid, it’s important to be specific, refer to the points in the tender and provide evidence to offer reassurance that you will be able to provide the service you are outlining. That means committing to your social value proposition.

“Writing about some generic commitment to the local community won’t score well,” asserts Cooney. “Neither will saying you will hire more locals. You need to quantify your objectives and state exactly how many locals you propose to hire and what environmental or social initiatives you will implement. Make the link between your social value initiatives and the proposed services. For example, if the contract involves installing new boilers in council homes, talk about how you will ensure that local residents benefit from training opportunities related to boiler maintenance or boiler safety.”

Winning more work, particularly government contracts, starts with making the tendering process more accessible, concludes Flaherty: “Smaller businesses need support in understanding how to meet the specific criteria these bids ask for – including compliance, certifications and paperwork. Training in bid writing, clear examples of successful submissions and mentorship from businesses who’ve done it before would go a long way. Also, simplifying frameworks so sole traders aren’t automatically shut out would open up more opportunities for skilled local tradespeople.”

• For more information, visit gov.uk/contracts-finder and tsaksconsulting.com

Winning formula

Tsaks Consulting advises P&H engineers who want to win more government bids and tenders to:

• Only bid for contracts you have a reasonable chance of winning and ensure you have the experience, insurance and expertise that align with the contract requirements.
• Tailor your response to each and every question, from safety to personnel and include relevant experience.
• Ensure compliance with all the licensing and safety requirements and include evidence.
• Write concisely and in plain English – don’t confuse the reader with complex terminology or technical jargon.
• Provide a detailed response, especially for your methodology and experience. You need to demonstrate that you have thought through the project and services, identified potential challenges and come up with strategies to overcome them.