Table of Contents

1. Introduction ..................................................................................................................................... 2

1.1. Background and Context......................................................................................................... 2

1.1.1. About the company ......................................................................................................... 2

1.1.2. Organizational hierarchy ................................................................................................. 2

1.1.3. Typical process ............................................................................................................... 3

2. Case study ....................................................................................................................................... 4

2.1. Project A ................................................................................................................................. 4

2.2. Project B.................................................................................................................................. 5

3. Analysis: Project A vs. Project B .................................................................................................... 6

4. Personal Reflections........................................................................................................................ 8

5. Conclusions ..................................................................................................................................... 9
1. Introduction
Tendering is a crucial stage in projects in the built environment and involves the contribution of inter-
disciplinary teams to produce an attractive and winning bid to a prospective client. Apart from
demonstrating capabilities of an organization to execute a potential project, tendering also involves
application of sales and business strategies to secure competitive advantage over the other bidders. In
short, several factors come together in a successful bid. Bid success influences the amount of business
for an organization and ultimately the sustainability and survival of the organization in the market. High
success percentage also demonstrates the cohesiveness of the teams within the organization.

This report presents a reflective case study involving a comparison between a successful and
unsuccessful bid in an interior design organization in Dubai. The author, who is a Bid Manager working
in the company, presents a detailed review of the two bids with the aim of identifying the factors that
contributed to success in the winning bid which were not present in the lost bid.

1.1. Background and Context

It is crucial to understand the company, the organization structure, and the processes to evaluate the
case study that follows. Hence, the following sections provide a detailed context and background
highlighting the company details, distribution of roles and responsibilities, and the steps involved in a
project from cradle to completion.

1.1.1. About the company

XYZ Company is a leading interior design and fitout company with European origins and based in
Dubai, UAE (United Arab Emirates). The company also operates in other Middle Eastern countries like
Saudi Arabia as well as parts of Europe. XYZ Company has been a leading player in the interior design
and fitout industry in the region for nearly 20 years and boasts one of the largest design teams.
Commercial and office projects are the main specialty of XYZ company, though several hospitality and
residential projects have been successfully executed. Commercial projects also include high-profile
global brands as well as the local government. XYZ has in-house capabilities to provide complete
interior design and MEP (Mechanical, Electrical, and Plumbing) consultancy services as well as act as
the fit-out managing contractor. XYZ is a go-to design service among high-end clients in the country
and have executed projects in most prominent buildings including the acclaimed Burj Khalifa. The
company is hence a frequent name in award ceremonies and have garnered several awards and accolades
for outstanding design projects and designers over the years.

1.1.2. Organizational hierarchy

XYZ Company was established in 2003 as a 50-50 partnership between a European architect and a UAE
local businessman. The latter allowed the company to fulfil the mandatory requirement of local
sponsorship for starting businesses in the mainland. The founder Architect is also the Chief Executive
Officer in the company. The following organization chart depicts the roles and hierarchies within the
company. The three design teams are central to the business and each include a senior designer, a mid-
level designer, and a junior designer. Each design team is supported by a team of technical designers,
3D visualizers, and CAD technicians who produce realistic visuals of the design teams’ output. The
operations department consist of the estimation teams and the administration and finance teams. A large
in-house project management and fit-out management team also support projects during the fit-out
phase of projects. Above all, a sales and marketing team serves as an essential link between the
company and the outside world, especially the clients.

1.1.3. Typical process

Projects in the built environment are challenging and riddled with risks because of the long and drawn
out processes that take place to bring a concept to reality. When a client envisions a project, a consultant
is typically sought to put the vision to paper and prepare detailed concepts and plans so that it can be
brought to life.

Like any construction project lifecycle, the typical life of a project in XYZ company starts with
identifying a new lead source or responding to a lead enquiry. Leads are essentially potential clients
who may have a project opportunity for the company. Not all leads are converted to pitches, projects,
or clients. The Client Account Manager is the key point of contact for every new lead and project in the
company.

Since the author works as a Bid Manager directly under the Client Accounts Manager, she will be
henceforth named as Ginny in this document for confidentiality reasons.

Ginny has an established network of contacts in the industry who bring news of new projects and clients.
She then reaches out to the new leads who may or may not have been previous clients for the company.
If the project is confirmed and the client requests for a design pitch or commercial proposal (or both)
as part of the company’s bid to work on it, then the Directors of each department are alerted so that the
teams can start working on a proposal. The normal duration for a proposal submission is 2 weeks, which
may include layouts, site survey reports, 3D renders and visuals, proposed programme for the project,
and a preliminary cost plan. All deliverables are integrated and the respective contract terms and
deliverables are added to create a comprehensive proposal submission by the Bid Manager. Submission
is usually made privately to the client through the specified channels like emails, hardcopies, and cloud
server locations. On government projects, proposals are submitted on the public tender portals.

Project awards can take anywhere between 2 weeks to several months. Typical life cycle for a design
and fit-out project for offices is 6 months. Once a proposal is successful and the project is awarded, a
detailed process ensues to produce a comprehensive design package that precedes the actual fitout
execution for the projects. Since this case study is regarding the tender period, the detailed design and
fitout processes are not discussed in detail in this report.

2. Case study
In September 2022, XYZ tendered on two commercial (office) projects almost at the same time. The
company was successful in a bid and unsuccessful in the other. This case study is a reflection of the
factors that were crucial in either outcome.

For the sake of confidentiality, the projects are named as A and B in this report. While similar outcomes
are experienced in different projects, these two projects were chosen because they were similar in size
and scope and had similar requirements for submission deliverables.

2.1. Project A
In early September, 2022, Ginny added company A as a new lead in the XYZ company sales platform.
No information was available for the client or the project, but the lead was obtained from a trusted
source. The Bid Manager joined XYZ company soon after and reached out to the lead in two weeks. A
direct contact email was obtained for the lead and this was communicated with Ginny. Having several
new opportunities to work on at the same time, Ginny postponed her communication with Company A
so that the other urgent proposals could be submitted.

Two weeks later, Ginny contacted the client and was informed that a project was indeed planned and
the tender was nearing the closing period. However, the company had already shortlisted preferred
vendors and it was almost too late for any new bidders to enter the competition. Since the client is a
leading company in the Electronics and Telecommunication industry, Ginny persisted and was allowed
the opportunity to submit a full design proposal including visuals for the project.

The project was the setting up of new offices for the company in Uptown Tower in Dubai, which is a
mega tall skyscraper with 115 floors in a prominent commercial hub in Dubai. The offices for the
company will cover a full floor of approximately 12,000 sqft. in the tower. The scope of works for XYZ
in this project is the complete design and build. The estimated value for the project was 5.5 million
AED (around 1.3 million GBP), and the profit margin for XYZ in such design and build projects is
30%. Hence, it was estimated that the company would gain nearly 1.7 million AED by taking up the
project. The project handover was required by March 2023, which was also a practical deadline for
XYZ.

The duration for the proposal submission was only a week, which is inadequate to produce full design
pitches including 3D renders. However, the Design Director agreed to task the available design team,
Team A, with the project. Having years of experience in the industry, the different teams worked
together as a well-oiled machine to produce a pitch two days after the deadline. The design teams
worked over time to keep up with the short deadline. The extension was approved ahead of deadline by
the client upon request.

Ginny was constantly in touch with the client representative during and after the submission period.
She further requested an opportunity to present the design on multiple occasions but was not obliged.

Two weeks after the submission, however, XYZ received confirmation that the proposal, while a strong
contender in terms of design, did not win the competition. While the company has grown to accept
failures positively and adopt learning lessons from them, it was nevertheless an undesired outcome and
one that meant that the team’s hard work and efforts were wasted.

2.2. Project B
In September 2022, XYZ was invited to bid on another project (Project B) which was located in Abu
Dhabi, an hour away from Dubai. XYZ was referred to the client by a mutual contact who got in touch
with Ginny to provide brief details. Ginny reached out to the client and received a Request for Proposal
(RFP) to be submitted within 2 weeks. The client is a leading investment firm in the UAE with a high-
profile board of directors and list of clients. They are moving from an existing office to a new one in
Abu Dhabi Global Markets. The size of the offices was 12,000 sqft. and the scope included complete
design and build. The project value was estimated at 5.8 million AED which meant an expected profit
of 1.74 million AED. The client expected the project to be handed over in March 2023. It was
understood that a competitive tender was being run and the best offer in terms of design and cost will
be awarded the project. Team P was tasked with the design pitch for the project.

The client’s representative was extremely forthcoming and maintained a good flow of communication
with Ginny and the management of XYZ. Following their lead, the management at XYZ arranged lunch
and other events to meet and build a relationship with the client. They travelled to Abu Dhabi to meet
the client, study their existing offices, and learn more about the company culture and design
expectations. The team comfortably submitted the proposal by the deadline and was allowed the
opportunity to present their design and proposed fees.

Two weeks after submission, XYZ received the notification that team was shortlisted for the project.
The client was transparent about the factors they agreed and disagreed with on the proposal and
requested for a few changes before they could decide the winner. Hence, the team was able to amend
the initial pitch to include the changes and resubmit the pitch. Following this, XYZ received
confirmation that the project was awarded and their pitch was successful.
3. Analysis: Project A vs. Project B
Project A and B were similar in terms of size, scope, project value, and deliverables. The following
table summarizes the features of the two projects for comparison.

Project A Project B
Type Commercial, private Commercial, private
Location Dubai Abu Dhabi
Size Approx. 12,000 sqft. Approx. 12,000 sqft.
Scope Design and Build Design and Build
Deliverables Full Design Pitch Full Design Pitch
Project Value 5.5 Million AED 5.7 Million AED
Pitch duration 1 week 2 weeks
Design team Team A Team P
Outcome Bid Lost Bid Won

There were several factors that influenced the respective outcome of the two projects. These factors
ensured were found to be crucial in the successful bid in Project B that were absent in Project A, and
are discussed in detail below.

i. Client relationships and communication

The main reason for the failure of the bid for Project A was identified as the lack of a personal
relationship and good communication with the client. The bid was already underway when XYZ joined
the competition. However, Ginny or the rest of the team were not able to discuss the requirements
beyond the RFP with the client. Unlike most projects for XYZ, there was no relationship with the client
in project A which eliminated a crucial competitive advantage for the team. The client had no means to
know the team and understand how the company works.

Design is something that is viewed subjectively. However, behind every design, there are several
technical and cost considerations that influence the various decisions. A client may or may not have
adequate knowledge of the meaning of the design concept or associated technicalities unless and until
the designers are given the opportunity to explain their work. XYZ realizes this and has always put in
significant efforts to ensure that a presentation is booked with the client, for which establishing a good
relationship with the client is a pre-requisite. In Project A, the client did not oblige Ginny’s repeated
requests to allow the team to present the work. While the design was commended as a good one by the
client, the basis for the various inclusions and exclusions, as well as the cost of the work was not
understood by the client.
On the other hand, the team was able to build and maintain a strong relationship with the client in
Project B. While the client was not previously acquainted with XYZ, the mutual connection introduced
some familiarity between the client and XYZ. Communication and relationship-building activities
during the pitch submission by the Sales team ensured that the client had a personal connection with
the team and a positive impression much before the pitch was submitted. A presentation opportunity
was allowed which enabled the design team to explain their design intention and hence reinforce the
client relationship with trust and confidence in the team’s abilities.

The initial contact seems to have influenced the subsequent client relationships in the two projects,
though this is not a factor that can be identified as key in all projects. In Project A, XYZ contacted the
client directly with no indication from the client that they need a proposal from XYZ. On the other
hand, the interest of the client to involve XYZ in the bid was indicated at the beginning n Project B, and
the client requirements were communicated through a mutual contact before XYZ approached them.

ii. The right team for the job

One of the most crucial decisions that have to be taken for a new project is assigning the design team.
This is usually done by the Design Director. For Project A, Team A was tasked with developing the
pitch in a fast-tracked programme. Considering the short duration for tender submission, the right team
would have been one that is experienced in the organization and knows the processes and teams inside
and out. Therefore, the senior designer can devise the quickest way to approach the pitch and ensure
that all deliverables are ready to be submitted by the deadline.

However, the senior designer heading Team A is a newly appointed employee in the company. While
he is extremely skilled, he is not yet completely familiar with the working and procedures of XYZ.
Hence, the best strategies may not have been integrated to complete the design pitch on time.

In the case of Project B, the most experienced designer in the organization was appointed for leading
the design team in the pitch. Not only was she guiding the design work, she was also directly involved
in meeting the client and evaluating requirements before the pitch submission. The designs and
submissions appeared to be more complete and thorough as compared to project A, which could also
be because of the additional time available for Project. B.

iii. Cost of the design

Previous analysis at XYZ has indicated that the most common cause of unsuccessful bids was the high
cost as compared to competing organizations. The cost estimate submitted to the clients include the
preliminaries which cover the design and project management fees and the construction or fit-out costs.
The preliminaries are high because XYZ has a larger design team than most organizations which helps
to ensure that the highest quality of results is achieved. The cost of preliminaries cannot be reduced
without downsizing the team or lowering the fee of the designers. XYZ further produces high-end
designs and uses the best-quality materials for all projects. Sometimes, the costs are also higher for
keeping to the client requirements. In such situations, XYZ proposes value engineering options to allow
the client to choose a cost-effective option instead of their original requirements. Again, a close
relationship with the client allows the company to open up opportunities to propose Best and Final
Offers (BAFO) or value engineering options, in case the initial cost estimate exceeds client budgets.

Since the client for Project A had provided positive feedback on the design, the higher cost could have
been the factor that was officially identified as the reason for unsuccessful bid. The lack of client
relationship prevented the opportunity to propose a lower cost proposal to the client in this bid.

In the case of Project B, a close relationship with the client allowed the team to receive information on
change requirements by the client and resubmit the proposal before project award.

iv. Competition from other organizations and delayed submission

As mentioned earlier, XYZ entered the bid for Project A much later than other companies, by which
time preferred vendors were already shortlisted. It is understood that XYZ was allowed to bid so that
the possibility of a lower priced bill can be explored. Even at the time of entering the competition, the
chances of XYZ winning the bid was low. The short period for bid submission and the subsequent delay
further lowered the chances for success on this bid.

On the other hand, the bid for Project B was submitted on time with ample time allowed for
resubmission as well as presentation. The pitch duration also allowed the management and sales team
to carry out the essential relationship building activities as well understand client budget and priorities.
This allowed the company to gain a strong competitive advantage over the organizations bidding for
the project.

4. Personal Reflections
In retrospect, there were important lessons in the two bids that can be used to enhance bid success rate
for the company as well as the efficient utilization of resources.

As an established company with several high-profile projects being executed simultaneously, there is
room for XYZ to choose projects carefully and based on the probability of success. Project A was a
good prospect had the client been contacted earlier. Towards the end of the tender, the possibility of
winning the tender was significantly low due to which it would have been a better decision to simply
avoid participation. This would have prevented the wastage of precious time of the design team, which
could instead have been utilized for other more important projects.

Upon personal reflection, I also realized that I should have encouraged Ginny more forcefully to contact
the client once I secured her contact. This would have enabled us to obtain enough time to build a good
relationship with the client before winning the bid. I believe that the delay in making initial contact
played a key role in the outcome of the bid. Once the contact was established, it was too late to overcome
the advantage gained by other competitors in the bid.

On the other hand, Project A was successful in many ways. All steps for client engagement and
successful preparation of bids were fulfilled in this project organically. Positive signs from the
beginning motivated Ginny and the team to perform to the fullest and work till the end to ensure that
the bid is successful. The client was also proactive and very involved in the project.

The two projects have revealed the critical importance of time. The work of the design, estimation, and
project management teams have to be integrated prior to submission. The design is the most time-
consuming part. Any delays put the estimations team under pressure to submit by the deadline when
there is not enough time remaining. The delay in the cost plan further puts pressure on Ginny and the
Bid Manager as it would mean the task of contacting the client for an extension of time. This does not
reflect well on the company and puts us at a disadvantage even before the bid is evaluated, especially
when it is a new client. As the Bid Manager, I would like to explore the possibility of allowing the work
on the cost plan to begin early in future proposals.

This case study is highly relevant for me as I joined the company in September 2022. Understanding
criteria that influence success in bids is crucial for performing my role efficiently. I understand that no
single factor can play alone in a bid to be successful. In addition, the nature of construction projects
itself presents significant challenges, such as the collaboration between multiple disciplines. Periodic
reviews of projects can be useful in lowering the rate of failure in bids.

5. Conclusions
In conclusion, this report presented a case study in which two similar bids with different outcomes were
compared to identify the factors that influence success in bids. Tendering is a major step in securing
construction projects. The specific industry related to the case study is the interior design and fit-out
industry in Dubai, United Arab Emirates.

The report first provided a detailed background and context for the organization. The organizational
hierarchy and the typical process in projects were discussed in detail in addition to main details of the
company. The projects were introduced in the second section and all specific details were included.
This was followed by the third section which is a comparative analysis of the two bids based on the
critical factors identified. The fourth section provides a brief personal reflection of the two projects.

Based on the above study, the following conclusions were drawn regarding bids in my organization:

i. Project bids have a higher chance of being successful if there is a good client relationship
established and maintained.
 ii. It is important to select the right project for the team and the right team for a project. If the
project requirements cannot be efficiently met by the team, it would be better to not take
up the opportunity than to participate and waste resources in the process.
iii. Cost is often the most important criterion in any project. However, the best cost does not
always have to be the least cost. For this, the client’s cost requirements and priorities have
to be understood and the basis for proposed cost have to be communicated to the client.
iv. Successful bids are also influenced by external factors such as the flexibility of submission
deadlines and the competitiveness of bids by other participants in the tender.
v. Any stage of a construction project is successful only if all the different disciplines come
perform effectively.

While this report discussed the factors related to the two projects in detail, the analysis is limited by the
fact that only internal factors are definite and known, and the actual process and justification of bid
evaluation by the client organizations is not known and is largely assumed.