TRANSCRIPTION 🔗
Pete
00:00:17
Hello and welcome to get flushed.
Pete
00:00:18
I'm Pete.
Pete
00:00:20
I've been thinking about today's episode for a long time.
Pete
00:00:23
I was first asked about this topic about a year ago, and I originally began to write the script when I ran the series of daily shorts back in December.
Pete
00:00:31
I couldn't figure out the best way to approach it, so I left the episode on the drawing board.
Pete
00:00:36
I've obviously been thinking about this in my deep subconscious, because when I revisited the script last week, everything came together pretty much over the course of one afternoon.
Pete
00:00:46
My question for today's episode is what is the best way to present a bid for a tender?
Pete
00:00:52
In my experience, the vast majority of small scale restroom orders come in as direct requests from the customer.
Pete
00:00:59
I'm talking about the jobs for one or two restrooms on a construction site.
Pete
00:01:03
Half a dozen lose on a weekend hire, maybe at a summer fete or a family party.
Pete
00:01:07
On jobs like that, you might be asked to give the customer an estimate or a quote for the services they want you to supply.
Pete
00:01:13
But in most cases, the customer will email or telephone tell you what they need, when they need it, agree to your price, and leave you to do the rest.
Pete
00:01:22
For bigger jobs that require multiple units or run for an extended period of time, it's more common for restroom operators to be asked to submit a formal quote or bid, especially if the contracting body is a municipal council or government agency.
Pete
00:01:37
This is a good point to perhaps clarify some of the terminology I'm going to use in the episode.
Pete
00:01:43
You'll find any number of definitions and explanations in business books or online, but when I sat business 101, a quote was a written offer to supply goods or services to a customer.
Pete
00:01:53
Quotes are usually presented in written form and describe what you can supply, how long you can supply it for the price, and a valid date, after which the customer will need to ask for a new quote.
Pete
00:02:05
You can send quotes electronically or in hard copy, but you should always keep a copy in your quotes file or the customer's account record.
Pete
00:02:13
Although they're often used somewhat interchangeably, the terms tender and bid refer to two parts of a formal supply and demand process.
Pete
00:02:21
A tender is usually defined as the formal invitation to supply goods or services issued by a customer, while a bid is the term used to describe the written response to that invitation.
Pete
00:02:33
Tendering is a formal process with a number of key phases or stages that the contracting authority will work through in order to identify their preferred partner and award the contract to supply.
Pete
00:02:45
That's all designed to make sure that the winning supplier has the resources, capacity, and expertise to provide the level of service required at the right price.
Pete
00:02:53
And I'll say here that price or cost is not always the deciding factor, but it's usually a very important one.
Pete
00:03:00
First stage of any tender process is the announcement that bids are being sought.
Pete
00:03:04
This can be a public announcement to any and every supplier, or a direct invitation to tender aimed at specific suppliers.
Pete
00:03:12
Every year my local council invites bids from restroom suppliers to provide restrooms and temporary fencing at their summer events.
Pete
00:03:19
Occasionally they invite bids for individual jobs, but more typically they bundle a whole series of key events together into one tender package.
Pete
00:03:26
My local council has a list of preferred or qualified providers, the companies with a proven track record that they consider to be qualified to compete in this process.
Pete
00:03:36
Local government regulations require them to work through a very structured process and that usually means they'll ask for three bids from their list of suppliers.
Pete
00:03:44
Now, if your company has previously submitted a bid or supplied services, the procurement team might send an invitation to bid as a matter of course.
Pete
00:03:53
Otherwise, government departments and local councils publish details of every tender on their websites, in local newspapers and on other online directories.
Pete
00:04:02
Here in New Zealand, individuals and companies can register for the government's electronic tender service or gets, which lists all central government work and LG tenders for all local government work.
Pete
00:04:13
And there are similar services elsewhere.
Pete
00:04:15
The one in the UK is called contract finder, while the US has Tenderlink and bidding source websites like that usually require you to register for access and have an online portal where you see offers.
Pete
00:04:26
Prepare your applications and follow the process of any submissions.
Pete
00:04:30
Commercial tenders may also be advertised in the local or national press industry, magazines and journals, or on the contracting company's website.
Pete
00:04:38
At other times, the project lead may only seek bids from their approved or preferred suppliers.
Pete
00:04:44
Now, if you want to get into tender based contracts, you're going to have to do some work to give yourself the best chance of presenting a winning bid.
Pete
00:04:50
Bear in mind though, in many cases agencies and companies with preferred suppliers may be tied into formal agreements or rebate schemes, which means that you may not realistically be in with a chance even if you're invited to bidde.
Pete
00:05:02
If you do find a tender opportunity or are invited to submit a bid and you really want to win the work, it's important that you understand exactly what the process involves and exactly what the procurer wants you to supply.
Pete
00:05:14
I say that because you might be asked to bid on work that you don't really want.
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Pete
00:05:17
You may not have the capacity or the resources to meet the requirements of the job.
Pete
00:05:21
You might decide that it's not work you really want to do, and I suspect this happens a lot.
Pete
00:05:26
You may be asked to submit a bid, but the procuring department already has a preferred supplier that they've used for many, many years, and everyone knows that they'll win the next contract, too.
Pete
00:05:36
And while I'd say it's okay not to submit a bid, even if you're asked to, bear in mind that not doing so could see you missed off the list the next time those invitations are sent.
Pete
00:05:47
Tender submissions often include much more information than standard quote for routine work.
Pete
00:05:51
The tender document for a large scale project is likely to be very complex and require lots of information about your company.
Pete
00:05:58
While the tender will be tailored to meet the particular project, the information you need to provide in your bid will be fairly standard, which means that you can often use or tweak previous bids to write the next one.
Pete
00:06:09
In my experience, most invitations to tender will ask you to submit a bid that follows a structured format which includes the following an executive summary, your company profile the scope of work, your technical proposal, pricing and cost breakdown, health and safety or risk management plan, environmental or sustainability considerations, compliance insurance and legal and your terms and conditions.
Pete
00:06:35
I'll talk about each of those in turn.
Pete
00:06:38
The executive summary should be a one page overview that highlights the main points and why your company is best suited to this project.
Pete
00:06:46
While that comes first, I'd probably recommend that you write this last after you've pulled together the rest of the information you need to include.
Pete
00:06:54
The company profile section is used to give a snapshot of your organisation.
Pete
00:06:58
It should include your legal status and business structure and if you have a company board, it should describe the company's governance framework.
Pete
00:07:06
This section should also include your vision and mission, any key personnel, technical qualifications and experience in similar project.
Pete
00:07:14
The main purpose here is to prove your ability to conduct business.
Pete
00:07:18
The scope of work section is where you demonstrate that you clearly understand the requirements of the job.
Pete
00:07:23
You should use this space to explain how you plan to deliver the goods and services and identify any key dates, milestones or phases of work.
Pete
00:07:31
Don't just copy and paste the specs from the tender invitation here.
Pete
00:07:34
Put your proposal into your own words.
Pete
00:07:36
You might break it down into something very simple like restroom delivery setup, routine servicing and final removal from site.
Pete
00:07:44
If you need some structure, you can always listen back to my earlier episode about pre start meetings and use my IIMark briefing model, information, intention, method, administration, risk management and communication.
Pete
00:07:56
I'll put a link to that episode in the notes for this show.
Pete
00:08:00
If the tender includes a technical proposal section.
Pete
00:08:03
This is the opportunity for you to talk about how you specifically intend to carry out the work.
Pete
00:08:08
You should explain the solutions you intend to supply and how you will work with the project team.
Pete
00:08:13
In some cases, the tender will give specific details about the customer's exact needs.
Pete
00:08:18
They might need 50 restrooms serviced three times a week over four months.
Pete
00:08:22
The tender might be a little more vague and expect you to describe how many units you would supply to complete the job.
Pete
00:08:28
You don't need to give away all of your secrets here.
Pete
00:08:30
For example, you might just explain how you'll work with a project manager to identify the best number and locations for restrooms on site.
Pete
00:08:38
You might explain your staff are experienced sanitation service technicians who have completed training with a psaiden.
Pete
00:08:45
You might describe that your fresh water flushing toilets meet the latest sanitary requirements, and you could explain how you make arrangements for after hours or emergency call outs.
Pete
00:08:54
Remember that you, as a restroom operator, are more of an expert in portable sanitation than most site managers or tender administrators.
Pete
00:09:02
Use that to your advantage.
Pete
00:09:04
You don't need to share a fully detailed work plan, and I would keep some information to myself to protect my intellectual property just in case I didn't win the biddenness.
Pete
00:09:13
I've seen tenders where I didn't think the commissioning manager had allowed enough restroom capacity.
Pete
00:09:18
There are some good charts out there to show how many restrooms are required for the number of people on site over a given duration, but remember that those figures are estimates and the specifics of each job can be very different.
Pete
00:09:30
Indeed, it can pay to include a paragraph that explains how you're willing to work with a contracting partner to identify and meet their exact requirements.
Pete
00:09:39
When I scoped for large events, I'd prepare a spreadsheet where I'd work out every transport movement, how many restrooms on each truck and trailer, the mileage to and from site for every load, the total number of blues required for the entire duration, the estimated volume of waste, and anything and everything else that would have an effect on price.
Pete
00:09:58
I didn't send that information to the client as part of the bid, but mapping it all out gave me a fair idea of the work involved, and that helped with the next section.
Pete
00:10:06
Pricing and cost breakdown when you start to pull together financial figures
for any job, you need to be sure that you cover the direct and indirect costs of business as well as leave enough margin for profit.
Pete
00:10:17
The direct costs include everything that happens to get the restrooms to site prep them for use with water and blue supply, enough sanitizer and toilet paper for the week ahead cleaning, which includes removal and dumping of waste, returning the units to the yard at the end of the hire and making sure they have a deep clean and repair before they go on the next job.
Pete
00:10:36
The indirect costs include everything that your business has to spend in order to do business.
Pete
00:10:40
This will include capital payments on borrowing, the rent or lease on the yard, utilities such as power, phone and Internet, salaries, insurance, tax obligations and anything else that the business has to pay.
Pete
00:10:51
Whether any restrooms are on hire or not.
Pete
00:10:54
These principles apply whether you are bidding for a single toilet on a house build, or 30 units on a high rise project, or 100 units along a new stretch of highway.
Pete
00:11:03
The linear nature of restroom hire actually makes it easy to work out your direct costs.
Pete
00:11:08
Even on a long term hire.
Pete
00:11:10
When multiple units are involved.
Pete
00:11:12
You don't need to include every detail of your financial calculations in the bid, but the price you offer is the price you'll get paid if you're successful.
Pete
00:11:19
So you need to be diligent in working out your costs before you make your offer.
Pete
00:11:23
If there are variables or exceptions, include them.
Pete
00:11:26
I'm thinking things like tip over fees, extra cleaning because someone's made a mess on site, or an extra tank empty because a system is jammed, or someone left a tap running all weekend.
Pete
00:11:36
And if your price includes one carton of paper a week, write that down and give a price for additional cartons or rolls.
Pete
00:11:43
The next section is health and safety or risk management.
Pete
00:11:46
Now you can't plan for every eventuality, but you do need to use this section to show how you and your team are able to work safely and that any equipment you use or leave on site is fit for purpose and safe to use.
Pete
00:11:58
You probably won't be able to identify the exact risks in the project until you visit the site.
Pete
00:12:03
So use this section to describe your general approach to health and safety and explain the processes that you and your team will follow to identify and manage risk.
Pete
00:12:14
The next section is environmental or sustainability considerations.
Pete
00:12:18
Now, this is sometimes covered under health and safety, but when you're dealing with toilet waste, it's important to reassure the client that you have the proper permits, systems and processes in place to collect, transport and dump water waste in a safe, legal and proper way.
Pete
00:12:32
Pretty much every operator is going to talk about how they use environmentally conscious products, use low emission vehicles, recycle their packaging, and take steps to save water.
Pete
00:12:42
So what can you say here that will help you catch the client's eye?
Pete
00:12:46
Well, obviously you're going to say all of those things, but what the client really wants to know is that your company will be here to complete the work without creating an environmental disaster or leaving a trail of waste for someone else to clean up.
Pete
00:12:58
And remember that sustainability is about people too.
Pete
00:13:01
If you've got a loyal crew that's been with you for many years, I guarantee that their knowledge, experience and skills will be the difference your company brings.
Pete
00:13:09
If you have very low staff turnover or a cadet scheme that helps young people learn the skills and build a career in sanitation, say it.
Pete
00:13:16
Be proud of your people and the way they work.
Pete
00:13:19
The next section is compliance and legal considerations.
Pete
00:13:22
Here you should refer to any certificates, licences, permits, permissions all of the things that are required for you to conduct legal business in your jurisdiction.
Pete
00:13:31
This section may also include confirmation of your public liability insurance.
Pete
00:13:37
The final element I referred to was the terms and conditions.
Pete
00:13:40
Now, if you've got a pre prepared terms and conditions document, by all means refer to that and include it as an attachment.
Pete
00:13:47
But help the tender panel make their decision by summarising your terms of trade here.
Pete
00:13:52
I would specifically mention a deposit if it was required, your invoice schedule, methods of payment and dates for payment your process for dealing with disputes, ownership and insurance during the hire and a process notice period and fees for early termination.
Pete
00:14:07
If you've prepared a tender for your business before, you've probably got most of this information to hand.
Pete
00:14:12
If not, start collecting and collating it now so that you've got everything ready when you find a tender and want to submit your biddenness.
Pete
00:14:20
Although well written, well structured paragraphs are essential, tenders aren't won because they're written in beautiful, flowery prose that invokes warm memories of happier times.
Pete
00:14:28
Instead, it's important to be clear and concise.
Pete
00:14:31
Say what you mean and mean what you say and when you finish writing it, save it and use spell check to pick up any obvious typos and grammatical mistakes.
Pete
00:14:40
When I prepare bids, I usually get someone else to proofread them.
Pete
00:14:44
Before I press submit.
Pete
00:14:45
I'll ask them to use a critical eye and look for sentences that were just waffle or didn't make any sense.
Pete
00:14:51
I didn't want the proofreader to make changes, just highlight the things that didn't quite fit and when they sent it back, I'd read their comments, look at the original text and decide whether or not any changes were required before I finalised the document and sent it off.
Pete
00:15:05
Now, if you submit a bid by email, offer to supply any further information if required, and follow up with a phone call in a day or two to make sure that they received the document and can open it after that.
Pete
00:15:15
It's usually a waiting game as the client works through their decision making process.
Pete
00:15:20
If you sit on that side of the desk and make decisions to award contracts, I'd love for you to come on the show and discuss your work.
Pete
00:15:25
Please get in touch with Peteflush Dot online.
Pete
00:15:29
There's no specific formula for writing a perfect bid.
Pete
00:15:32
I'm certainly not saying that my way of presenting a bid is the only way, or even the best way, because tenders are often very specific to each project.
Pete
00:15:39
And while projects can be similar, no two projects are ever exactly alike.
Pete
00:15:44
That's all for today.
Pete
00:15:45
Thank you.
Pete
00:15:46
I've been Pete and you've been listening to get flushed.