Go or no go: how to decide if a tender is worth bidding

By the Visionex Solutions bid teamLast reviewed 03/11/20266 minute read
The short answerA go or no go decision tests whether a tender is worth your time before you start writing. Ask seven questions: have you done this work before, can you show a job and a referee, can you meet every mandatory requirement, is your insurance at the level asked, do you know the area, is this work you want more of, and have you tendered for this kind of buyer? Three or more no answers usually means walk away.

The seven questions

QuestionWhy it matters
Have we done this kind of work before?Experience is usually a scored criterion
Do we have a job to show and a referee?Evaluators look for proof, not claims
Can we meet every mandatory requirement?One miss can exclude the response
Is our insurance at the level asked?Insurance levels are common knock outs
Do we know the area?Local knowledge and travel affect price and delivery
Is this work we want more of?Winning the wrong work is its own risk
Have we tendered for this kind of buyer?Each buyer type has its own rules and expectations

Try the free go or no go check on our home page.

Warning signs

  • A mandatory requirement you cannot meet in time
  • A very short tender period with no time to ask questions
  • Contract terms with unlimited liability or large liquidated damages
  • A scope you would need to subcontract mostly to others
  • Signs the work is already tailored to an incumbent supplier

Make the decision once, on paper

Write down the decision and the reasons, and who made it. If it is a go with gaps, list how you will cover each gap before you start writing. Your hours are the real cost of tendering; spend them where you can win.

A simple scoring sheet

AnswersDecision
7 yesStrong go. Find the knock outs, then write.
5 or 6 yesGo, with a written plan for each gap.
4 yesBorderline. Bid only if it is strategic work.
3 or fewer yesWalk away, or partner with a business that covers the gaps.

Count the real cost of bidding

Estimate the hours: reading, meetings, writing, pricing, review and lodging, for everyone involved. Multiply by what those hours are worth to the business. That is the cost of the bid, and it should feel small next to the margin on the work you could win.

Questions

How many tenders should a small business bid on?

As many as it can do well. Fewer, better targeted tenders usually beat many rushed ones.

Should we bid just to get on the buyer's radar?

Sometimes, but treat it as a decision with a cost. A weak response can leave a poor first impression.

Who should make the go or no go call?

The person who owns the work and the risk, usually the owner or a manager, using the same questions every time.

Should we bid if we can only meet most requirements?

Only if the gaps are not mandatory. A mandatory requirement you cannot meet is a no go unless the buyer clarifies it.

Sources

Written by the bid team at Visionex Solutions, Melbourne tender consultants and the makers of BidPal. General information only, not legal advice.