Competition is always good for values and the ability to effectively run a bid system is a great way to assure getting high quality workmanship, services, products, and materials at the very best price.
So, what is the key to an effective bid management process? First, you need to put together a basic description of your company, references, management, and financial strength.
This should be presented honestly, but in enough detail to answer prospective providers questions.
You may want to complete non-disclosure agreements with the potential bidders as a matter of mutual protection of all the parties involved.
Next, you have to determine who will be responsible for bids in each given area.
Next, prior to any bid you must develop the technical requirements you expect the services, contract work, products, or materials to meet.
This often requires seeking capabilities or characteristics are available.
To do this effectively, this normally requires spending some time finding out what is available in the market place.
The means and methods to accomplish this include visiting other properties, management companies, blogs, leading industry sources, and querying the key providers you identify during the process for more specific information.
Having completed the information collecting stage, you will put together your own list of requirements and evaluation criteria.
You may complete a full bid process or you may simply shop and compare prices.
However, the point is to provide a disciplined evaluation and development process.
For large bids, you will actually deliver request for proposals along this specific line to each prospective source.
You'll require a specific response format.
Upon receiving responses and choosing your short list, you will contact the leading providers.
Each will be given questions on their response and guidance for providing a modified competitive response.
During this phase, you should check references and possibly even check prior workmanship for other past customers.
You will want to ensure proper legal review for very large bids verifying that the terms and conditions of the contract do not include hidden exposures.
Remember best price does not necessarily provide the best solution.
Bids should carefully balance price and performance offer against proven ability to deliver.
Further more, if a deal is too good to be true, the likelihood is that the bidder may not be able to perform.
In such a case you must with certainty assure that the bid is both the best but that it will be provided effectively and according to terms.