Submitting a tender is critical to securing projects in the construction industry. It can often be a lot of effort for little reward, but it is a necessary evil. Hats off to tradespeople who make the decision and take the plunge to work for themselves.
Unfortunately, quoting isn't something most of us learn during our apprenticeships. While short courses are available after you become qualified and certified, they're just the tip of the iceberg. Software like Groundplan has big advantages; however, every tender needs a personal touch.
Whether you're a seasoned pro or learning as you go, here are six common mistakes MEP trades make when submitting tenders—and how to avoid them.
1. Take off errors
One of the most fundamental mistakes in tender preparation is misunderstanding the take-off stage. Miscalculations can lead to significant over, or under-pricing.
- Accuracy is key: Ensure that your counts and measurements are precise before pricing. Miscounting items such as light fixtures or outlets can snowball into bigger issues later.
- Scale matters: Double-check the scale of your plans before measuring. Errors here can throw off all your calculations.
- Typical rooms or levels: When working with repeating designs, confirm your multiplication is correct to avoid underestimating or overestimating totals.
2. Incomplete Scope Identification
Why it happens
Misunderstanding or underestimating the scope can lead to discrepancies between your tender and the builder’s expectations.
How to avoid it
- Clarify the scope: Always ensure you fully understand the requirements by studying the tender documents.
- Raise RFIs (Requests for Information): If something is unclear, don't guess—ask for clarification.
- Conduct site visits: Seeing the site firsthand can help you spot any potential challenges or additional requirements that may not be apparent in the documents.
- Align your scope with the builder's: If there's a mismatch, your bid may be disregarded, or worse, you could face unplanned costs later.
3. Incorrect or outdated material pricing
Why it happens
Material prices fluctuate frequently, and relying on old catalogues or unverified supplier quotes can result in mispricing.
How to avoid it
- Regularly update your pricing catalogue with the latest information from suppliers.
- Request updated quotes from suppliers several times a year to stay accurate.
- Carefully review all supplier and subcontractor quotes and double- and triple-check figures to ensure confidence in your submission. Accurate pricing ensures your bid is competitive and protects your profit margins.
4. Poor tender presentation
Why it happens
A hastily prepared or poorly formatted submission can give the impression of unprofessionalism, even if your pricing is competitive.
How to avoid it
- Create a polished and professional tender document with a clean, consistent layout.
- Avoid spelling and grammatical errors—these small details can make a big difference in how you're perceived. Builders often judge bids on presentation as much as on content.
5. Failing to build relationships with the builder
Why it happens
Tradies sometimes focus entirely on pricing, forgetting the importance of relationship-building.
How to avoid it
- Introduce yourself to the builder's estimators and management team.
- Maintain regular communication—builders prefer working with contractors they know and trust.
- Invest in building a reputation for reliability and professionalism. A strong relationship with the builder can sometimes tip the scales in your favor, even if your pricing isn’t the lowest.
6. Error in deciding who to work for
Why it happens
Who you work for and project selection is essential before even entertaining pricing a project.
How to avoid it
- Strategic Client Selection: Avoid a scattergun approach by focusing on a smaller number of well-researched opportunities rather than chasing every project. This allows you to build stronger relationships with the right clients.
- Evaluate Project Feasibility: Assess whether the project aligns with your company’s capabilities, resources, and ability to manage cash flow effectively. Ensure it matches your team’s skill set and capacity.
- Assess the Builder's Reliability: Investigate the builder’s track record, including payment reliability, project management competency, and their reputation in the industry.
Conclusion
Submitting a successful tender requires more than just accurate numbers—it demands careful attention to detail, professionalism, and strong relationships. By avoiding these five common mistakes, Tradies can enhance their chances of standing out in a competitive bidding process.
Hi, I'm Jack Clarke, General Manager of Concept Electrical Estimating, Concept Mechanical Estimating, and Concept Plumbing Estimating. Our skilled team of estimators handles projects of all sizes across Australia and New Zealand. With offices in Melbourne and Perth, we focus on three key promises: 1. Helping you win the job, 2. Ensuring you meet deadlines, and 3. Minimising risk. We're passionate about supporting our clients' success in the industry and are always ready to offer expert advice on estimating.