Recently we explored the Top 3 reasons to use online tender management. Today, we’ll take you through the two tendering options: Private and Public tendering and why smart Contractors choose both to drive their business.
Online public tendering announces to the market you are looking for pricing on a job, just like putting an ad in the paper. While that may reveal you intentions to competitors, it has many benefits.
1. Reduces the time and labour involved in reaching out to subcontractors over the phone or via print ads, which in the long run becomes an expensive exercise.
2. Allows you to keep an eye on market prices to remain competitive. Having visibility of the competitive landscape and market value of certain trades, helps protect margins.
3. Provides you with volume. Whether you’re working in a regional area or looking for a specialty trade, public tendering will increase your chances of getting more quotes.
On the other hand, private tendering can feel like a ‘closed’ option, relying on established partnerships and a smaller base of contractors to quote. That may be the case but it does come with it’s own set of benefits.
1. Effective when you need to maintain a level of confidentiality and keep the information within a focused network.
2. Control and manage the process with subcontractors you know to avoid resource intensive review cycles including business reference checks.
3. As your projects grow in scope and complexity, it becomes increasingly important to ensure that the subcontractors you are selecting deliver on a standard that you want and trust.
Striking the balance between Public and Private online tender management, can be extremely beneficial to Contractors looking to maintain a competitive edge while developing partnerships with subcontractors to support ongoing growth and mutual benefit. It’s a winning combination!