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Have you been paid yet?

11/01/2012 by · Leave a Comment

Recently an alliance of small business lobbying groups sent a letter to the Business Minister Mark Prisk, highlighting one of the biggest problems facing companies tendering for contracts in the UK today: late payment.

The numbers present a clear picture of the both the scale of the problem and who the mostly likely perpetrators are.

  • Large companies are responsible for 48% of late payments and account for most of the £24 billion owed to small and medium suppliers in the UK.
  • Late payments for UK Government tenders or charity work constitute just 9%, less than public/private concerns.
  • Both the public and the third sector have improved their record in recent years .
  • Prominent excuses given include a lack of payment authorisation and reports that the “cheque is in the post”.

Encouraging Prompt Payment?

Businesses can be scared to “name and shame” large corporations who mess around with their tender contracts, despite the fact that late payments break businesses. In these circumstances, it can be difficult to know exactly who to complain to. A poor UK government tender PQQ structure can be flagged up for the Cabinet Office to look into, but what about a multinational?

You could try encouraging prompt payment by the tender issuer. The letter to the Business Minister suggested a clampdown on “prompt payment discounts”, a strategy in which suppliers offer discounts on products in exchange for guarantees of payment on time. Several business advice websites suggest doing just that to incentivise punctual payments for commercial tenders. A company considering this should ask themselves whether they want to be paying the buyer extra to do what they claimed they were going to do on the tender contracts.

What can businesses do?

The best answer – and unfortunately the most complex to implement – is to make your business more resilient in times of unexpected cash flow problems relating to late payment. We can help you transform the capabilities of your business. Firstly, it’s important to consider how many sources of income the company has. It is dangerous for a company to rely on just one major contract or tender.  Another important safeguard to pursue is a high credit score. Being transparent about the financial state of the company can be helpful in other aspects of winning bids, especially for new companies who may not be able to provide the several years of financial data requested by most UK government tender PQQs. Win that Bid’s Bid Management service can help you assemble the right documents.

Don’t let yourself get pushed around.

Companies should also research the organisation issuing the tender. The sources of information aren’t always immediately obvious. This is an area in which a consultancy like Win that Bid can really help you in assessing whether to pursue an opportunity. Carrying out credit checks on potential customers is a good start. Communication between the supplier and the customer is always important: You should be clear about what the payment terms of the tender contract are and request clarification if they aren’t clear. And if the customer does try to change the terms of the contract, a supplier should make it clear that it expects something in return.

Filed Under: General, PQQ, PQQs, Procurement, Proposal Writing, Tender Writing, Top Tips, Win Bids, Win That Bid · Tagged: , , ,

Procurement – Carbon Footprints

10/01/2012 by · Leave a Comment

May 2011 saw the publication of a report outlining Bristol City Council’s Carbon Footprint that related directly to procurement activity.  [Please see the full report: Carbon Footprint of Procurement] Will we see more local authorities asking questions on carbon footprints? Probably not!

The report does provide a response to the question ‘is the Carbon Foot a consideration for procurement teams’?  In basic terms the answer is ‘yes – BUT’. That but is always going to be there as cost is always a key consideration that outweighs marginal or woolly statements.

If it is not a primary consideration we need to really review what steps suppliers can take to ensure that carbon reduction targets are built into their responses in a way that does add value, has potential to score points and builds a credible, measureable indicator for the buyers without saddling the supplier with unnecessary burdens .

Carbon reduction will reduce operational costs in the long run, however for it to be really effective in council target terms it needs to have an annual impact that stands scrutiny.

Suppliers working in the areas listed should look at the development of their carbon reduction strategy for procurement as an opportunity to add value:

  • Construction
  • Sewage treatment and disposal
  • Refuse disposal
  • Waste Management
  • Community Services  including Health care

We should all be continually looking at our energy reduction targets, how we access our own services and materials with effective carbon management systems.

However most companies when asked will not have a clear understanding of what their carbon footprint is or how to measure it.

Therefore in our energy conscious market anything that demonstrates a clear commitment to sustainability and environmental management systems should include a carbon management plan.

A recent update to the EU Guide encouraged procurement teams to use environmental criteria in scoring tenders, note the point made:

“Applying environmental award criteria may make sense, for example, if you are not sure of the cost and/ or market availability of products, works or services which meet certain environmental objectives. By including these factors in your award criteria, you are able to weigh them against other factors including cost.” Section 5.2 of Buying Green 2nd Edition – EU Guide 2011 [Italics ours]

So to meet the environmental objectives the core of the response needs to offer better value and additionality that will make a real difference in the context of the council targets. Where do you begin? Possibly with these five steps:

1.       Measure/Audit your Carbon Footprint

2.       Report the results annually

3.       Provide evidence of reduction targets and how you are meeting them

4.       Substituting with less-carbon-intensive alternatives

5.       Renew the scheme regularly as products change

Suppliers can have a significant impact on Public Sector targets by adopting an EMS with a Carbon Reporting element, it may not be required in the Tender but it will not go unnoticed.

Do carbon footprints count? Yes if you link them to a carbon reduction plan and an environmental management system. These are much easier to introduce and will reward suppliers with an additional competitive edge.

Filed Under: Business Strategy, Construction, Framework Agreements, General, PQQ, PQQs, Procurement, Top Tips, Waste, Win Bids ·

The economics of the sandwich

06/01/2012 by · Leave a Comment

Lothian and Borders Police has come in for a bit of ridicule lately, following news that they had issued an incredibly complex PQQ describing their sandwich needs in pedantic detail. Other recent stories include complaints about construction tenders with over one hundred questions and extremely high accreditation requirements. These can seem like impossible hurdles for public sector bid writers. The solutions don’t seem immediately obvious: after all, a few weeks before the newspapers ran their story about sandwiches-by-committee, they ran a different story about widespread (and viscerally detailed!) complaints among the police about the standard of catering in the organisation. Lothian and Borders Police clearly felt they needed to respond with stringent quality requirements in their tender contracts!

How can companies cope with these problems?

It is worth complaining to the government’s mystery shopper program if you find yourself confronted with a public sector tender PQQ request that seems insurmountable for anyone other than an established supplier. Blanket requests for ISO accreditation or similar is probably the most common stumbling block for tender writers. In particular, companies tendering for contracts in the environmental sector have a real problem with ISO14001, which is time consuming and expensive to implement.

The good news is that the Cabinet Office has already taken action to provide alternatives: An example would be that of TUCO, the University Catering Organisation, which was asked to review its PQQ requirements after complaints that it asked too much in ISO accreditation from suppliers. Obviously, procurers have a right to ask for guarantees that their tenders will be fulfilled: now they are simply being asked to provide alternative ways of providing those guarantees. Most of the irreconcilable problems surrounding public sector tender PQQs will relate to the council’s transparency requirements.

Bid writers going for government tenders in the UK should not be afraid to make complaints about poorly written PQQs or confusing requirements. In recent months Win that Bid has seen some particularly egregious examples of poorly constructed PQQs – the inexperienced procurement team in Northern Ireland is a particular offender! This is something that the government seems genuinely intent on changing. In the meantime, it is important to pick the right tender for your business, and Win that Bid can help you find tenders.

Getting the Basics Right

The basic strategy for getting through complex public sector tenders is to be prepared for them in advance. After a few UK tender bids a bid writer will have a library of policies and documents ready to go. It’s worth getting started on building that library now so you can be ready to take the next big opportunity – one thing you really need to avoid is going in unprepared and rushing to hand in the bid at the last minute. To help you along Win that Bid’s sister company Proposal Monkey offers a comprehensive range of policy templates to help you get started, or Win that Bid’s bid management service can advise you on putting together everything you’ll need.

Filed Under: Bids, PQQ, PQQs, Procurement, Proposal, Proposal Writing, Top Tips · Tagged: , , , , , , , , ,

The Bribery Act 2010 in force

04/01/2012 by · Leave a Comment

You might have seen some conflicting news reports about the Bribery Act lately. Notably, the legal firm Ernst & Young recently polled company employees and found that only 6% of companies surveyed believed that the Bribery Act compliance rules had affected their business. That said, the Bribery Act 2010 is also very young – the first person to be sentenced under the terms of the act was sent down on the 18th of November 2011.

He wasn’t some high flying CEO handing over diamonds in exchange for winning an oil contract or for favour in a weapons contract bid but a 22 year old court clerk from Redbridge called Munir Yakub Patel. His six year sentence (which could have been somewhat worse had he not pleaded guilty very quickly) has been taken as proof that the courts intend to take the act seriously. However, since he was a public employee, it is difficult to glean any information about how the courts intend to treat businesses in anti-corruption cases.

The big thing that everyone should take away from the sentence is this: Munir Yakub Patel didn’t offer a bribe, he took one. This is why the Royal Mail have been issuing guidelines warning postmen not to take Christmas tips worth more than £30 and this is why companies need to know the compliance rules so they don’t inadvertently find themselves in unexpected legal trouble by taking a gift they shouldn’t have done.

The Bribery Act 2010 is especially unclear on the subject of gifts between companies. The Ministry of Justice didn’t specify any monetary value above which the act comes into force which can leave companies open to unexpected legal challenges.  A company can cover itself by having a clear and public policy regarding gifts, including a maximum monetary value.

Things to consider

When choosing “reasonable and proportionate gifts” it is important to consider the context. Giving a lavish gift to a retiring client shouldn’t present a problem since there isn’t any intent for the recipient to act improperly in exchange. Similarly, presenting a gift in recognition of a job already accomplished is generally acceptable. Companies should be more circumspect when exchanging gifts in an ongoing business relationship.  The general consensus appears to be that “reasonable and proportionate” gifts include items like calendars and USB sticks. Be careful with expensive alcoholic beverages and avoid things like expensive jewellery, Christmas hampers and foreign trips.

Another reason to have a clear policy is that companies can now be found liable for failing to prevent employees or contractors from taking or receiving bribes. This makes it especially important for expanding businesses involved in multiple tenders or business relationships to have a clear anti-corruption policy that all employees are aware of, simply to protect themselves. It wouldn’t be worth the cost of a legal wrangle if an employee inadvertently takes a £200 bottle of champagne from a contractor and gets called up before the courts! For this reason the company’s policy on bribery should also be provided to suppliers and other relevant business contacts such as those bidding for tenders so that they don’t inadvertently expose the company to legal trouble. Our sister-company Proposal Monkey can help supply those documents.

In addition to the arrest of Munir Yakub Patel, fines have also been brought against a number of large corporations. It is likely that 2012 will be the year that the Bribery Act 2010 comes into its own and the year in which business finds out how the courts intend to apply it. To ensure your business doesn’t face undue problems, read the act, draw up a simple compliance policy and ensure that your employees are aware of it. Those simple steps will do a lot to limit the exposure of any company to the new anti-corruption rules. Win that Bid’s bid management and co-ordination service can help get all your documents in order and fill in any gaps.

Filed Under: Bids, Business Strategy, Policies · Tagged: ,

SMEs and public sector tenders

16/12/2011 by · Leave a Comment

What do the latest changes mean for your business?

Small and medium sized enterprises (SMEs) can feel locked out of government tenders by the Pre-Qualification Questionnaire (PQQ) requirements. The Cabinet Office wants this to change and over the last year they’ve taken some steps to do just that. In this article we’re going to take a look at what they’ve recommended and how that could make things easier for your business and applying for public sector tenders.

There are a few issues that face SMEs when public sector tendering. The first is that public sector departments are risk averse because of limited budgets and competing political demands. No authority wants to hire a small company and discover it can’t fulfil the contract. To avoid this UK government tenders focus on compliance and financial robustness, favouring established companies.

Worse, SMEs can be inadvertently filtered out of the process by asking far too much of them in compliance requirements or in the scale of the contract. The Cabinet Office is currently recommending that contracting authorities split their contracts into separate micro-lots for each required service. This ought to help SMEs by reducing the size of each contract and allowing them to take advantage of their specialist expertise that a large company trying to do everything might not possess.

The Finance Problem

Public sector tendering often requires demonstrating financial stability backed up with plenty of financial data, which can be a problem for many SMEs. They may simply have not been operating long enough to meet those requirements and probably lack the required level of insurance. They may not have enough staff to collate all the information they need.

The new guidelines encourage procurers to allow for alternative forms of financial information. UK government tenders and their contracting authorities are being encouraged to be more open about exactly what details are necessary.

Changes in “Technical and Professional Capacity”

The last thing any local authority wants is to be made complicit in some awful pollution or racism scandal by one of their contractors. So they’ve tended to put equal opportunities, health and safety and environmental compliance into the “technical or professional capacity” section of the PQQ. It can be expensive to prove that an SME is in compliance with all these rules.

The Cabinet Office has asked contracting authorities to remember that this section should only be about previous similar contracts, quality control and technical staff. This doesn’t mean that the compliance issues are now irrelevant: instead, the local authority is likely to use the “eligibility” section to ascertain whether the bidder has a record of dumping hydrogen sulphide into municipal swimming pools. The hope is that the move will draw a much clearer distinction between mandatory and discretionary grounds for disqualification, helping SMEs. If a contracting authority isn’t clear about where the line is, ask!

Big Changes in Best Practice

The Cabinet Office has issued a model PQQ in line with all these new changes which government departments are now required to use. By only including the minimum requirements of the regulations, the hope is that the bar won’t be set too high for SMEs to consider. Better still for SMEs, the Cabinet Office has a “mystery shopper” report. Suppliers are being encouraged to report poor procurement practices and unclear tenders.

The new guidelines for PQQs all aim to make the process simpler and cheaper for SMEs to engage in, and provide more outlets for them to question decisions or get feedback. Not all of the potential hurdles have disappeared, but they have got lower.

We would love to hear about how the changes have affected your business so what do you think?

Interested in finding local government opportunities?

Interested in hiring a bid writer to help you win a local government tender?

Filed Under: Bid Writing, General, Opportunities, PQQ, PQQs, Procurement, Tender Writing, Tenders, Top Tips, Uncategorized, Win Bids, Win That Bid ·

Two Stage Tendering for Destination Builds

28/09/2011 by · Leave a Comment

Perhaps the most crucial factors contributing to the success of a destination builds (tourist attractions, hotels, restaurants, head offices) are location and design.  Once chosen, there’s not much you can do about location.  Design however, is a different matter.  Not only does it cause challenges throughout the initial fit out, over time the building will need to re-design to keep up to date.

There are four main methods of procurement and central to each is the responsibility of design.

1) Construct Only: This method sees the developer appoint a design team which will control all areas of design until the project is finished.  Once the design of the building is completed the developer will tender for a construction team.  This tender will be solely for construction duties and as bidding is for a finished design, tenderers can bid a lump sum.  The main advantage of this procurement process is that the developer retains control of design, vital to the owners. The contractor is also taking on less risk than a project that may still change so costs can be driven down.  However, this step by step process demands a lot more time than ones where building and design can overlap or coincide.

2) Design and Build: Design and build procurement involves the developer having their own design team which will begin the design process.  Then, once the design has reached a suitable stage, a design-build contract is issued.  The contractor who wins this contract will continue to develop the design, replacing the original team, while carrying out building works.  An advantage is that the work can begin earlier which will save the developer money.  It also limits the risk of extension of time claims due to design error.  There are some disadvantages.  Tenders will ask a higher price than Construct Only contracts, as they do more work.  Also, the developer loses design ownership key to the brand of the building.  It is possible for the developer to employ a team of design monitoring consultants but the opportunities for confrontation and crossed wires arise, as do more costs.

3) Two-Stage Tendering:  This can be seen as a adaptation to the Design and Build process.  It is sometimes thought of as more suitable for smaller, less complex buildings, but is increasingly popular.  This arrangement involves a contractor carrying out pre-construction work and assisting the developer’s design team.  It is usually let on a guaranteed maximum price basis.  When the design has progressed to a point where construction is able to begin, the developer will enter into either a construct only contract or possibly a design-build contract to complete the works.  The benefits of two-stage tendering to the developer involve retaining the all-important design control.  Also, as the developer has been able to engage the contractor early and obtain a fixed price for the second stage, this system provides cost and time savings.

4) Construction Management: With this system, the developer employs a construction manager as an advisor.  All works required throughout the building will be divided into packages and the construction manager will give guidance on the best way to do this.  The developer then enters into each separate contract while the construction manager oversees the process.  As everything is done under separate contracts, pre-construction works can begin while design is still being finalised.  When the design is finished one single contract can be issued for the rest of the works.  The main advantage to this method is the degree of control the developer keeps over the design.  The main disadvantage though, is that there is no single point of contact on the construction side.  Errors, queries and suggestions must involve tracking down the relevant contractor.  This is difficult for the developer and very unattractive to any lenders.  Previously, construction managers were assumed to have relatively little liability, as they are have no direct, contractual link with sub-contractors.  However, after the high profile Great Eastern Hotels case, construction managers and developers may view the arrangement differently.

Need tender writing or bid management assistance? Get in touch 0203 405 1850 or email hello@winthatbid.com

Filed Under: Bids, Business Strategy, Procurement, Tenders, Win That Bid · Tagged: , , , , , , , , , , ,

How to Find Tenders

05/09/2011 by · Leave a Comment

People often ask us how to find tenders for their business.  There are hundreds of portals in the UK – some generalist, some specialist.  Some charge a membership fee and others are free.  This article sets out a few ways to find yourself some great tendering opportunities.

Contracts Finder
 Contracts Finder is a free new service for businesses, government buyers and the public. This service comes from government under its transparency commitment and you can find:

· live contract opportunities

· closed tender documentation

· contract awards and contract documents

TED (Tenders Electronic Daily)
TED is the online version of the ‘Supplement to the Official Journal of the European Union (OJEU)’, dedicated to European public procurement. Public procurement in the UK and European Union is governed by a number of Directives and Regulations and all tender opportunities above a certain monetary threshold must be published in the OJEU. TED provides free access to business opportunities. It is updated five times a week with approximately 1500 public procurement notices from the European Union, the European Economic Area and beyond. Register on the TED website for free to get started or contact the Enterprise Europe Network for further advice and support.

Where to find Global Sporting Opportunities

Where to find Local Authority opportunities

It is worth finding out how your local authorities manage their tenders however we find that in the majority they use their own online portals, advertise in local papers and/or use an external company like Exor to manage their preferred supplier database.

Central Government

Try these for size

NHS

The Department of Health is divided into a number of business units for purchasing purposes, each with their own budgets.  We have selected a few ways to monitor different tendering and business opportunities

Specialist

Each sector often has its own specialist portals and we have put together a list of some of them

What do you think of our How to Find Tenders list – have you got a favourite to add?

Filed Under: Bids, Business Strategy, Find Tenders, General, Olympics 2012, Opportunities, Procurement, Top Tips, Win That Bid · Tagged: , , , , , , , , , ,

Tender Writing Insights: The Devil is in the Detail

30/08/2011 by · Leave a Comment

When it comes to completing PQQs or tender writing the devil is often in the detail especially the closer you get to the submission deadline.

Take for example a company Win That Bid worked with a few years ago. The PQQ was for a contract with the Irish Government. At short notice, the client had asked us to complete the tender writing part of the PQQ and help them develop their win themes. All very straightforward and as often happens on the final day we worked onsite to ready the submission which included the PQQ submission itself and all associated documentation such as insurance certificates, health & safety policy, accounts, etc. Job complete we left the client’s office. Some weeks later we received news the PQQ had been unsuccessful, the reasons; the health & safety policy hadn’t been signed and the the insurance certificates weren’t included. How could this be? We knew they were in the pack before we left. It turned out the secretary in charge of sending the PQQ to Dublin with two days until the deadline automatically put it in the normal post. On realising the error of her ways she quickly printed out the pack again and sent it by courier. Of course this was the first submission received as well as the one which arrived prior to the deadline and therefore was the one marked by the procurement team.

The moral of the story – do not leave your tender writing and PQQ submission until the last minute whether its submitted by post or via an online portal. From the off, create a timetable of deliverables to lead you to two or three days prior to submission and build in some slack.

For all your PQQ, tender writing or bid co-ordination needs contact hello@winthatbid.com or give us a call on 0203 405 1850.

Filed Under: Bid Writing, PQQ, PQQs, Proposal, Tender Writing, Tenders, Top Tips, Win That Bid · Tagged: , ,

Tender Writing Policies: New Bribery Act Rules

23/08/2011 by · Leave a Comment

Do you have a complete and up to date suite of policies in your tender writing and policies library? Well here’s one more to add to the list. The Bribery Act 2010 finally arrived on 1st July 2011. If you missed our spring bulletin, the Act creates a brand new offence applicable to UK commercial organisations who fail to prevent individuals ‘associated’ with it from bribing another person on their behalf, no matter where in the world the bribery occurs. Conversely it also extends to non-UK entities conducting business in the UK. So how can your organisation protect itself from prosecution?

The key is to ensure the business has adequate procedures in place. Of course, prevention is better than cure but in the event the organisation is faced with defending its position in court, the ability to illustrate a robust set of anti-bribery and anti-corruption processes are in place will be vital to a successful outcome.

But where to start when considering how to structure a new set of guidelines? The Ministry of Justice have helpfully suggested six guiding principles: Proportionality, top level commitment, risk assessment, due diligence, communication (including training), monitoring and review. Small businesses who only trade within the UK may rightly feel as though this is overkill. If this is you, perhaps consider a watered down version such as ensuring everyone is aware of the Act and its implications and clearly stating the company’s view on accepting or giving bribes. Larger organisations will need far more robust processes in place and a solid policy rolled out throughout the organisation as part of their ongoing training program. They may also decide to put a senior management steering committee in place. However, the starting place for any size organisation is to conduct an assessment of the potential risks that may exist.

For more information about the Bribery Act 2010 or the suite of policies you hold in your tender writing library contact hello@winthatbid.com or to download a template go to www.proposalmonkey.com

Filed Under: Bids, Business Strategy, Find Tenders, Proposal Writing, Tender Writing, Tenders · Tagged: , ,

Questions to ask yourself before starting down the Tender Writing route

16/06/2011 by · Leave a Comment
When about to embark on the long journey towards winning a tender, we think that these questions are important discussion points for your team.  Even if you think that the PQQ is quick to complete, this is only the tip of the iceberg.  To ensure that you are in the best position to win your next tender or proposal you must ask yourself these questions before beginning the tender writing process:
Can my company exactly match the buyer’s needs?
  • You may look at a contract and think that your company can do most of the work but if there are areas that it cannot manage, your chances of qualifying or winning are seriously reduced.
  • Limiting areas include specification, geographical location and coverage, mandatory accreditations etc.
  • Is the contract the right size for my business?
  • You shouldn’t bid if the contract value is more than 25% of your turnover. Buyers will be checking that the tender contract value does not exceed 20-30% of the tendering company’s turnover to be sure the contract value will not be too much for the company to handle.
  • The size of your company dictates the maximum size of contract it is likely to win.
Can I show relevant experience?
  • Buyers like suppliers who can prove they can do the job, therefore references from similar organisations for similar work are ideal.
  • If you haven’t got these, you will need to show you have ‘transferable skills’ from customers with similar needs.
  • If the work you are bidding for is not a ‘core competence’ (i.e. it represents only a small element of your company’s overall turnover) it can reduce your chances of success.
Has my company got sufficient trading history?
  • Public sector buyers generally ask for (audited) accounts from the last 3 years (although sometimes 2 years is enough). This means that start-ups are not always in the best position to win bids.
  • Has the business seen year on year growth and if not is there a valid explanation for why not?
Has my company got enough time and expertise spare?
  • Will this project clash with any existing or upcoming work?
  • Tender writing is time consuming – you will need to invest a significant amount of your time and resources to create a winning bid
  • Tendering can also be a daunting task, especially if you do not have the right skills or expertise readily available
Is it a Framework Agreement?
  • If it is, how likely are you to get work that will make your application worth it?
  • Will I have to subcontract?
  • If you do, are you sure that this is the kind of work you want?
  • How will the subcontracting part or parts of the contract be viewed by the client?
  • Can you demonstrate supply chain quality assurance is achieved?
  • What is your subcontractor recruitment policy?
  • Is there an effective management process for subcontractors?

If you are still not sure and need help with your tender writing then do call us on 0203 405 1850 to help you evaluate your next big opportunity.

Filed Under: Bid Writing, PQQ, PQQs, Proposal Writing, Tender Writing, Tenders, Top Tips · Tagged: , , , ,
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