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Time to prepare a tender

📐 Article6 min read

What you will learn Where the time actually goes, what ten extra days allow, what to do about business secrets, how to plan resources, and when tendering does not pay.

Preparing a construction tender is not a calculation exercise. Most of the time goes on waiting for other people's answers, and it is exactly that which a deadline constrains.

1. Where the time actually goes

Four activities whose duration differs greatly, and whose controllability differs more. Some of them depend on third parties.

Activity Depends on Plannable
Working through the documents and technical specification the tenderer yes
Checking quantities the tenderer yes
Requesting and awaiting subcontractor quotations third parties no
Checking material prices with suppliers third parties no

The first two can be planned, the last two cannot. A subcontractor does not answer faster because your deadline is short, and their workload does not depend on your procurement.

2. What ten extra days allow

In September the minimum deadline for construction works in the simplified procedure extends from 15 days to 25. That gives the tenderer ten more days.

In 15 days a firm usually manages to ask, but not to receive answers from everyone. A missing answer is replaced by the tenderer's own estimate, which means taking on risk. In 25 days it is realistic to receive answers and compare them.

The difference is therefore not one of convenience but of the size of the risk written into the tender. A firm that cannot get a subcontractor price either does not tender or adds a margin, and both are bad for the authority: the first reduces competition, the second raises the price.

3. What to do about business secrets

One task must be done at submission, not later. It cannot be corrected afterwards.

A business secret must be marked and also justified at the time the tender is submitted. Unmarked information becomes public.

What may not be designated a business secret Applies
The whole content of the tender, including its price always
In supplies and construction procurements, all indicators characterising the tender that correspond to the award criteria, numerical or otherwise always

The practical conclusion is that marking business secrets is separate work requiring justification, and it cannot be left to the final hour. Marking too broadly is risky, because it is not permitted and can create problems.

4. How to plan resources

Four recommendations for a construction firm. Ask subcontractors immediately after the procurement is published, not after finishing your own calculations.

Give the subcontractor a specific deadline, earlier than the procurement deadline. Otherwise the prices arrive too late.

Decide early which procurements not to enter, because tendering partially everywhere costs more than tendering selectively. The choice keeps resource where it counts.

Use data from earlier procurements in the register to judge whether the price level is realistic. The data is public and free.

The third is the most important and the hardest: taking part in a procurement costs money even when it is not won. Preparing tenders is a fixed cost covered only by the win rate.

5. When tendering does not pay

Three situations. Where the deadline does not allow subcontractor answers to be obtained.

Where the technical specification is so vague that a price cannot be set reliably.

Where the award criteria clearly favour a different profile. The chance of winning is then small.

The second is the most dangerous, because a vague specification brings disputes with a win: losing costs the price of preparing the tender, winning costs the whole construction period. Where the specification is vague it is worth submitting questions, because the authority must answer them and the answer binds all tenderers.

In summary, and four practical rules

Most of the time in a construction tender goes on waiting for answers from subcontractors and suppliers, which the tenderer cannot accelerate. The extension from 15 days to 25 is therefore not convenience but risk reduction, since a missing answer is replaced by the tenderer's own estimate. A business secret must be marked and justified at submission, and neither the whole content of the tender nor the indicators corresponding to the award criteria may be designated as one.

Four rules: start by asking subcontractors, not with your own calculations. Mark and justify business secrets at submission, not later. Decide deliberately which procurements not to enter. Submit questions where the specification is vague, because the answer binds.

This article serves professional orientation at the date of checking. It does not replace the Public Procurement Act or information published by the Ministry of Finance.

Frequently asked questions

It depends on the size of the works, but four core activities, including measuring quantities and obtaining subcontractor prices, set the duration. Some of them depend on third parties and are outside the tenderer's control.

From September the minimum deadline for construction works in the simplified procedure rises from 15 to 25 days. The authority may always allow longer.

At the time the tender is submitted, and it must also be justified. It cannot be corrected afterwards, and unmarked information becomes public.

Early and deliberately, since tendering partially everywhere gives a worse result than tendering fully in fewer procurements. Register data on past procurements helps in judging the chance of winning.

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