A tender submission is an integral part of any large project that requires the trade of goods or services. However, the process has become simpler recently, thanks to virtual data rooms.
We will be looking at the processes and documentation involved in tender submissions and how the latest technology is changing the way businesses access raw materials, products, and services.
What are tender submissions?
A tender is a submission made by a contractor, making an offer for the supply of services or goods. Tender documents are prepared to seek offers. They are usually prepared for a variety of contracts in numerous industries.
Tender documentation: What to include in a tender submission?
A tender submission may comprise a variety of documents. These include:
- A request for tender (RTF)
- The form of tender
- The form of contract, as well as contract conditions and any amendments
- A tender pricing document
- A tender return slip
All copies of tender documentation must be kept in your records.
Ideally, tender documents should be divided into a series of packages (even if there is only one main contract). Each package should come with clearly defined specifications, which the main contractor can then issue to any sub-contractors. This makes the tender easier to price for the contractor and easier for the client to compare multiple submissions.
It is also important to ensure that you do not have too many packages because you increase the number of interfaces which can cause problems. Therefore, the cost plan (otherwise known as the pre-tender estimate) should be re-assembled from package to package, allowing for a straightforward appraisal of tenders.
The usage of virtual data rooms for tender submissions
As the business world becomes more digitized, it is no surprise that dedicated virtual data rooms are being developed for tender submissions.
For the uninitiated, a virtual data room is an online platform used to store and share documents. In many cases, virtual data rooms aid due diligence during M&A transactions, though they are also used in loan syndication and private equity and venture transactions.
These data rooms allow for stress-free tender submissions. Here’s how it works in practice:
- Open your request for tender.
- Share any technical and financial documentation with prospective bidders, suppliers, experts, and partners through a virtual data room.
- Invite bidders to make an offer.
- Once you have collected those offers, manage the flow of documents between bidders and open a line of communication inside the virtual data room platform.
- Select your winning tender bid and share the complete project documentation with contractors, suppliers, and any other third parties involved in the process.
- Manage granular user permissions, data usage, document uploads and downloads, and track all user activity through a virtual data room.
These virtual data rooms offer several benefits for the tender submissions process.
- Increased efficiency. A virtual data room allows bidders to bulk upload their tender submission with user-friendly drag and drop functionality. Users have a single platform to share documents with other team members, saving time and effort managing the submission process.
- Reduced risk. By conducting your business in a data room, all bidder submission files are protected by the data room security protocols. This reduces the risk of any data breach or leak of sensitive information. You can also create complete audit trails concerning bid submission files, if necessary.
- Ease of use. Most importantly, a virtual data room offers a streamlined and intuitive user experience, simplifying the entire tender submission process.
- Smooth and timely work. If you have the correct permissions, you can access any files on any device. This means you don’t have to be tethered to the office to conduct business.
- Transparent process. Virtual data rooms allow for total transparency at every stage of the tender process.
If you are looking to invite bids for your project, it would be wise to use a dedicated virtual data room. As we have discussed, this is the best way to ensure all documents are kept organized. You also gain a level of transparency with all concerned parties and a convenient record of tender stored digitally.