Bidding for tenders and contracts in Nigeria and winning them is not always as a result of who you know in the “high places” that can easily help you. Though many believe it is, it’s not always true. Most times, it’s about knowing how to successfully bid for them.
In this post today, we will show you the perfect way to bid for such contracts in Nigeria and stand a greater chance of winning them.
Winning bid is not something that should been taken lightly. You must put every effort to learn and as well master how to do it. Unless you don’t mind losing them to other companies.
Below is a step by step guide on how to go about it right here in our dearly beloved country.
Bidding for Tenders And Contracts In Nigeria (A Step By Step Guide)
Without taking much of your time, here are 4 steps you need to follow when bidding for tenders and contracts in Nigeria.
- Research for Available Opportunities
The first thing to always do is to research for available opportunities. Ask around within your company’s location for other companies or clients that may be in need of the services your company offers.
Tenders and Contracts can come from private firms too. Not just the government. We have tenders and contracts from private companies in the Oil and Gas, banking – International bodies like UNICEF, UNDP, WHO U.S Embassy, AfDB and NGO’S like (IOM, Creative Associates, German cooperation, Mercy Corps, CRS) etc. All whose latest tender can be found on Nigeria Business Information.
These Tenders and Contracts are often announced on the website as:
- Expression of Interest (EOI)
- Request for Proposal (RFP)
- Invitation to Tender (ITT)
- Request for Quotation (RFQ)
- Invitation to Bid (ITB)
So be on the watch for such opportunities even from private firms as well.
Part of the ways you can do this is by checking the website for such opportunities, including those coming from the local, state or federal government.
You can even stay abreast of such information from different websites and national dailies by subscribing to their newsletter through your most active email address. That way, you will never miss out whenever such opportunity is available.
In doing this research, you need to speak with as many people as possible (government officials, contractors, representatives of different companies etc). submit enquiry forms at many places as possible – especially online.
- Get to Understand the Basic Requirements
Just getting to know the available opportunities is not enough. Also put efforts into knowing the requirements that is attached to the request for bidding that you got from either the government or different companies.
Understanding what work you are expected to do, the time frame you will have to do it and other things like the limitations your company is likely to face doing the work before submitting your bid will likely increase your chance of winning it. You need to be sure it is something your company can really handle.
If you are not sure or have an issue understanding the RFP, talk to someone about it. Hopefully the client, their representatives or someone else who is in the position to explain what is required of the companies that will be submitting their bids for the project.
The fact is, sometimes they may be willing to talk to bidders like you, at other times they may not even be available to do that. You will then have to either carefully go through the Request for Proposal line by line yourself or get across to other contractors who have in the past handled similar projects for help.
- Get Your Calculations Right
Putting into considerations your profit margin and your overhead costs (labour, equipment usage and supplies), calculate your bid.
Though your goal is to make profits for your business, bear in mind that there are several other companies that will be bidding for the same opportunities as you are. Try not to set your bid too high and as well too low.
Think of what will be profitable for your company in terms of the numbers and as well not sound “unrealistic” to your clients.
The truth is that setting your costs to be so low that you are the lowest bidder does not in any way guarantee that you will be awarded the contract. Most times what a client focuses on is the quality of services your company will be delivering before any other thing.
Sometimes you may even have to re-negotiate the final pricing after your company has been selected to do the project, especially if it revolves around construction.
- Write and Submit Your Bid on Time
Having gotten an estimate of what your cost will be, write and submit your bid on time. In case you are wondering how to go about writing your bid, I will explain that to you in the next section. Stick with me!
Submitting your bid minutes to the deadline is one sure way to show you are not really serious what you are aiming for.
You should finish everything that has to do with submitting your bid long before the time for it expires. Not just a few minutes to it or after it.
That is because you are not the only one who may have interest in that particular tender or contract. A whole lot of other companies may also be bidding for the same thing, give your clients a good reason to consider you by submitting yours on time.
