Addressing the sub-contractor issue
For many bid responses, writing about subcontractors in tenders is often covered on both sides so that the selection panel/procuring team are exactly aware of who they are receiving offers from.
For any tenderer, becoming a subcontractor can be an excellent way towards gaining real experience servicing large contracts. The inevitable transition from subcontractor status to an independent tenderer is more easily achieved when subcontractors have performed adequately in their previous contracts and are therefore capable of demonstrating the experience required for large tenders.
In the engineering and construction industries, subcontractor relationships are often enquired about in the tender documents themselves. As a first time tenderer, it is possible to engage other larger competitors on the prospect of a joint bid. This arrangement allows those companies with relative inexperience a pathway into servicing large contracts that they normally would not be considered for.
It is important to note that this applies in oil and gas tenders just as much as engineering and construction. The importance of understanding the nature of subcontracting in Tenders is both insightful and essential for business. There may be times when the highest level of efficiency and quality can only be achieved through subcontracting and therefore, on this front experience is crucial.
A strategy for your next bid or tender
In many tenders, the relative experience is that Catch-22 in which tenders are usually awarded to the most experienced (barring other criteria such as locality, charitable status, etc) but in doing so, many tenderers lack the experience to formulate a strong bid, to begin with. Subcontractor status in a tender can, therefore, break past that barrier and allow certain tenderers an opportunity to build important relationships and learn new skills. The Tender Team is adept at helping our clients craft tender responses that emphasise how convenient a subcontractor arrangement can be for both sides in our tender documents.
There are however disadvantages when it comes to becoming a subcontractor under a tender agreement. In many cases, the main contractor will limit any and all contact between you and the end client, therefore allowing you to demonstrate your skills and gain experience but prevent you from gaining company recognition. Furthermore, subcontractors’ payment schedules are influenced by the main contractor and any failure in performing your specified services can lead to litigation.
However, as a tenderer who wishes to engage the services of a subcontractor, The Tender Team will assist on how best to emphasise this relationship. Leveraging specific skills from the subcontractor alongside our clients’ main talents, we pride ourselves on the selection panel/procuring team getting a clear sense of how our clients’ combined talents distinguish themselves from the competition.
Subcontractor arrangements within a tender response are often created out of necessity, allowing main contractors to focus on the bigger aspects of a large engineering or construction contract while allowing for subcontractors to fulfill the grunt work or more specialist requirements.
At The Tender Team, we review your subcontractor arrangements or status and ensure that all aspects of your intended relationship are perfectly encapsulated in the tender response, all of which being essential aspects in writing about subcontractors in tenders.