Tender Writing – Dismissing the argument that price is not that important

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Tender Writing Dismissing the argument that
price is not that important
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Tender Writing Dismissing the argument that
price is not that important

• It seems everyone is a tender writing expert. It
  seems if you have a computer and can type people
  believe that they can suddenly become a tender
  writer.
• I must say I get a laugh when I look at other
  tender writing businesses and their websites and
  blog articles which I will admit is rare given I
  have little interest in what the competition
  does.
• But on the odd occasion someone points me to a
  website or an article as I said I get a laugh
  because most of them in fact the vast majority
  have absolutely no idea about the concepts and
  strategies involved in tender writing.

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Tender Writing Dismissing the argument that
price is not that important

• Just a few days ago I was directed to a site
  where this expert (self proclaimed by the way)
  tender writer was espousing that price really
  isnt that important when it comes to submitting
  responses to Government and Council offerings.
• Well I would like to challenge that ridiculous
  claim. As someone who was a senior public servant
  in a past life and worked in the public sector
  for 18 years I can state categorically that price
  is not the only consideration but in reality it
  is the most important consideration when tenders
  are assessed by Government/Council entities.

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Tender Writing Dismissing the argument that
price is not that important

• I was responsible in a variety of roles to
  assess tenders. Yes we focused on quality yes
  in those days there was a focus, a massive focus
  on quality and quality management and the
  development of quality systems.
• Yes we focused on experience in delivering on
  similar sized contracts.
• Yes we focused on capacity and ability to deliver
  on time. But the requirement we placed the most
  weighting on was price.

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Tender Writing Dismissing the argument that
price is not that important

• Now I get that was 17 years ago and times have
  changed but they have changed in a way where now
  price is even more important given
  Government/Council budget deficits and the 24/7
  news cycle and the demand for value for money and
  transparency in the public sectors dealings with
  the commercial world.

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Tender Writing Dismissing the argument that
price is not that important

• Now pricing can be given a weighting of up to 40
  to 50 percent kin some tenders. That is massive
  and as such pricing is almost as important as the
  rest of the tender requirements put together.
• That doesnt mean that in your tender writing
  that you have to have the cheapest price out
  there. But if you are the most expensive in your
  offer the chances of winning the tender will
  reduce the higher the Council or Government
  entity weight price in their assessment process.
  
• So lets say in assessing the tender they assign
  price a weighting of only 30 and they are
  scoring each requirement out of 5.

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Tender Writing Dismissing the argument that
price is not that important

• If you are the cheapest offerer you will probably
  get a score of 5. If you are the most expensive
  you might end up with a score of 1 or 2.
• In assessing the tenders they will take your
  assigned score and multiply it to the weighting
  for that criteria. So in this instance the
  business with the cheapest price will send up
  with a score of 150 for price (5x30) while the
  business with the most expensive price might end
  up with a score of say 60 (2x30).
• That means the business with the most expensive
  price has to make up 90 points over the rest of
  the criteria in the scoring process. So straight
  away they are at a massive disadvantage.

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Tender Writing Dismissing the argument that
price is not that important

• This is generally how tenders are assessed and
  gives transparency to the process.
• A lot of Government and Council entities now even
  publicise their weightings as part of the tender
  process.
• As such the skilled tender writer will really
  focus on the requirements with the most
  weightings.
• In essence you should focus equally on every
  requirement but as I just proved the higher the
  weighting the lower you score the more
  difficult it is to win that tender.

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Tender Writing Dismissing the argument that
price is not that important

• So to those tender writing experts out there
  making ridiculous claims that price is not that
  important, take it from an ex public servant
  price is very very important and will only get
  more important as budgets tighten.
• The skilled tender writer will make sure that if
  they are going to write a tender that first of
  all the business will be very competitive on
  price.
• You dont have to be the cheapest just be super
  competitive then at least you are a very real
  chance of winning the tender.

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Tender Writing Dismissing the argument that
price is not that important
Contact us at Red Tape Busters -
http//www.redtapebusters.com should you require
more information about this article or if you
require specialist grant or tender writing
experience to help your organisation or business
win grant funding or achieve successes with
tenders.
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Tender Writing Dismissing the argument that
price is not that important

• We are specialists in providing the following
  services-
• Lobbying
• Tender Writing
• Grant Writing
• Resumes/Job Applications
• Organisational/Business Development.

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Tender Writing Dismissing the argument that
price is not that important
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