Tendering Assignment

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Question 1

What are the some common challenges faced by organisations during tendering
process?

Introduction
Tendering kicks off when the contract type is requisite for a specific project has been finalized
and the focus is now on the contractor selection. The adopted techniques in choosing and
accepting tender is based on some measures which compasses the nature of the project , least
tender evaluated client wishes and reasonably accepted time of completion . Similarly , the
procurement process in construction is made up of sequence of actions and operations, used in
attaining the anticipated target of construction project. Therefore the process of tendering
comprises of contractor solicitation , bid appraisal e.t.c

Body
1.Lack of accurate data for tendering and estimating

 In Zimbabwe they are many organisations which run through the invitation of
tenders these include Pubic Works of Local Government, private companies etc.
Therefore these companies or organisations face a lot of challenges which includes
lack of reliable data for tendering and availability of estimators. Estimators rely on
historical cost data to develop precise estimates for construction project. However
finding a comprehensive and up to date data can be daunting task. The absence of
reliable data can lead to inaccurate tender cost estimation jeopardizing project
profitability.
 Another problem in spread sheet is the amount of unavoidable manual data entry
with that way of working. Estimators and surveyors go to work everyday to estimate
and survey not to enter endless data on to the spreadsheet or spend vast amount of
time filling out papers.
 The manual data entry rules the roost, errors and inaccuracies are inevitable. But
these can be costly to the business and even results in lost work reputational
damage. You may end up winning work you wish to you hadn't because you thought
the numbers added up but in truth they didn't.
 No estimators or surveyors worth their salts want to see errors creeping into their
estimates and their cost plan.
2.Complexity of Construction project

 Modern Construction project have become increasingly complex making tendering and
estimating more challenging. With intricate design, advanced technologies and multiple
trades involved accurately predicting costs can be difficult. Estimators must consider
various facts include labour, material, equipment and subcontractors costs.

3.Time constraints in tendering and estimating.

 The tendering process often imposes tight deadline on estimators. Meeting these
deadlines while preparing accurate cost estimates can be demanding, especially for
large and complex projects. Bid estimating software offers a time saving features such as
pre built cost libraries, customizable template, and automated calculation. These tools
enable estimators to streamline their workflows and improve efficient, ultimately
meeting project deadline more effectively.

4.Duplicating work between teams.

 For finance teams having a clear and unfiltered view of actual construction project cost
in the holy grail to strive for .Too often finance team spend large chunks of their time
trying to get the bottom cost and cost to complete and end up duplicating effort to
gather that data too.
 When it comes from construction tendering there are many tried and tested processes
that help the sub contractors to get their jobs done . Perhaps you are running
everything from what you think is well honed excel spreadsheet . eg when you dig a
little deeper and often you find hidden errors in your numbers , errors that too often go
unnoticed .
 What's more , these homegrown methods are often used and love by one team in an
organization. When another group need sight of the information they end up pulling it
from their own equally well honed spreadsheet.

5.Regulatory Compliance.

 Furthermore, another challenge we face of tendering and procurement in healthcare is


to comply with relevant laws and regulations that govern the process. These can vary
widely across countries and regions and may change overtime due to policy reforms,
legal disputes or public health emergency . Failure to comply will result to penalties ,
delays, disqualification or litigation. Therefore it is crucial for both buyers and suppliers
to understand and to adhere to applicable rules and standards and to monitor any
changes and update that may effect them .

6.Market intelligence

 Another key challenge of tendering in healthcare is to gather and analys accurate and
timely market information. This includes data on the demand and supply of product and
services , the competitors ànd their strategies , the price ànd costs , the quality and
performance indicators , the customer preferences and feedback and the trends
opportunities.
 Market can help all buyers and suppliers to make informed decisions , optimize their
bids and offersand identify and address gaps and risky. However, obtaining and
processing market information can be difficult costly or unreliable especially in volatile
market.

7.Sustainabiliy and social responsibility.

 Another challenge we face in tendering and procurement in healthcare is to ensure that


the process and it's outcome are sustainable and social responsible . This means that
considering the environment and ethical products and services that are procured and
supplied and the practices and behavior that are adopted and promoted.
 Sustainability and social responsibility can help both buyers and suppliers to reduce
their footprint , enhance their social reputation and contribute to the public good.

8. Contract Management

 Another challenge in tendering and procurement in the contract is to manage the


contract in the process. This involves ensuring that the terms and conditions of the
contract are clear and fair and enforceable and that the performance and compliance of
the parties are monitored and evaluated . Contract Management can help both buyers
and suppliers to deliver on their commitment , mitigate any issues or disputes and
adjust to any changes contingencies . However administering and enforcing contract can
be tedious resources intensive or problematic especially in long term or multfaceted
arrangements

Conclusion
Tendering and estimating in construction industry face a lot of challenges including availability
of accurate and historical data , project complexity, Time constraints , cost flactuation , limited
technology integration, and competitive bidding environment. Bid estimating software and
online construction estimating software may address some of these challenges by providing
access to accurate of historical data , streaming workflows , improving estimation accuracy and
facilitating competitive pricing strategies . By leveraging these technologies and embracing
digital solutions , the construction industry can enhance the efficient and profitability of the
tendering and estimating process.

Every subcontractors has its own way of managing the construction tendering process .
Whether you are using the spreadsheet or paperwork there will always be a challenge such as
inaccuracies and inefficient to deal with .So maybe now a good time to audit your construction
tendering process and procedures and really think whether there is a better way of doing
things. Therefore you will be surprised how much time you could save .

Reference:

theaccessgroup.com

Conwiser. Com

www. Concur. Com

Google. Com

LinkedIn. Com

Procurementcloud. Com

Tendereyessoftware. Com

Shipsigma. Com

Usher T Jakarasi

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