Introduction
Tendering for public projects can be challenging. Unlike private work, public authorities follow strict rules and procedures. Even small mistakes can lead to non-compliance and rejection. Deadlines are often tight, requirements can be unclear and the process can involve substantial paperwork and legal obligations.
This guide explains the ten most common problems contractors face when bidding for public work and provides simple and practical steps to overcome them. From preparing your documents and managing short timeframes to handling legal risks and digital submissions, these tips will help you submit compliant and competitive bids with confidence.
Complex and rigid tender requirements
The problem:
Public tenders often have strict rules. If you miss even one required document or make a small mistake, your bid may be rejected automatically. Public authorities rarely allow corrections after submission.
How to avoid this:
1. Create a compliance checklist (compliance matrix):
Go through the tender documents line by line. For every requirement, note what you will provide and where it will be attached.
Example: If the tender says, “Clause 3.2 – Provide ISO 9001 certificate,” attach the certificate in the correct section and label it clearly.
2. Prepare a standard document pack:
Keep a folder ready with common documents you will need for most tenders, such as:
- Anti-collusion declaration (a statement that you are not fixing prices with competitors)
- Conflict of interest statement
- Tax clearance certificate
- Quality Management System declaration (a statement that your products meet quality standards)
- Company policies for Quality, Health, Safety and Environment
- CVs of key staff
- Past project references
3. Do a final review (“red team”):
Have someone who was not involved in preparing the bid check the submission. They should confirm:
- All forms are signed (and witnessed/notarised if required)
- All attachments are included
- Pricing is correct and consistent across schedules
- Nothing is missing, duplicated or in the wrong format
4. Highlight critical items (“fatal risks”):
Make a short list of items that will cause automatic rejection if missing such as:
- Signed forms
- Bid bond (a financial guarantee from your bank or insurer)
- Correct pricing format
- Proof you attended any site visit (if applicable)
5. Organise your files:
Name files clearly (e.g., “Volume1_TechnicalProposal_Final.pdf”) and check the tender portal rules for file size, file type and naming conventions.
Short timeframes
The problem:
Tender deadlines are often tight, leaving little time for careful pricing and review.
How to avoid this:
- Keep standard content ready: Company profile, safety plans, environmental plans and CVs should be prepared in advance.
- Start fast: Within hours of receiving the tender, decide whether you will bid, assign tasks and set internal deadlines.
- Use cost benchmarks: Maintain typical rates and productivity figures so you can price quickly and consistently.
- Plan for approvals: Ensure the right managers are available to approve risk allowances and commercial positions quickly.
High administrative burden
The problem:
Tenders require substantial documentation, which can overwhelm smaller teams.
How to avoid this:
- Appoint a bid coordinator: One person should manage tasks, deadlines and document control.
- Use templates: Prepare standard sections like methodology, risk management and program that you can adapt quickly.
- Control versions: Store documents in one location and track changes to avoid confusion.
- Outsource design work (if needed): Consider external support for formatting, graphics and final layout.
Unclear or ambiguous specifications
The problem:
Tender documents sometimes leave scope unclear, which can lead to disputes later.
How to avoid this:
- List assumptions and exclusions: Clearly state what you have assumed and what is not included in your price.
- Check for gaps: Compare the bill of quantities, drawings and specifications to identify inconsistencies.
- Ask questions early: Submit clarification questions as soon as possible and track responses (and any addenda).
- Gather site information: Visit the site if allowed, take photos and check local conditions and constraints.
Price-driven evaluation
The problem:
Lowest price often wins, which can tempt contractors to underbid and risk profitability.
How to avoid this:
- Price carefully: Use detailed costing and cross-check against benchmarks and past projects.
- Offer alternatives (if permitted): Suggest cost-saving options that still meet requirements.
- Include risk costs: Add allowances for likely risks (e.g., delays, access constraints, unknown ground conditions).
- Show value: Where possible, explain how your approach saves time, reduces defects, improves safety or lowers whole-of-life costs.
Limited access to information
The problem:
You may not receive full site data or have enough time for investigation.
How to avoid this:
- Start with desk research: Use maps, publicly available records and data, including local planning information to understand the site.
- Price unknowns separately: Use provisional sums or unit rates for uncertain items (where the tender permits).
- Talk to local experts: Subcontractors and suppliers often know site conditions and local rules.
- Use photos or diagrams: Demonstrate your understanding of the site and constraints within your bid.
Strict compliance and legal risks
The problem:
Public tenders include strict legal requirements and mandatory declarations.
How to avoid this:
- Check all legal documents: Make sure you include bid bonds, insurance certificates, licenses and required declarations (e.g., anti-collusion, modern slavery).
- Keep records: Communicate only through official channels and retain copies of all questions, responses, addenda and submissions receipts.
- Review contract terms: Identify clauses that contain significant risks (e.g., uncapped liability, onerous indemnities, delay regimes) and propose departures if the process allows.
Financial and performance guarantees
The problem:
Bid bonds, performance guarantees and insurance requirements can strain cash flow and capacity.
How to avoid this:
- Talk to your bank early: Confirm you can provide the required guarantees and understand lead times.
- Negotiate terms (where possible): Request guarantees that reduce after milestones or practical completion.
- Prepare insurance evidence: Obtain letters from your broker confirming the correct coverage and limits.
- Check subcontractors: Ensure key subcontractors can meet guarantees, insurance and compliance requirements.
Digital submission challenges
The problem:
Tender portals can be tricky. – Document uploads can fail, formats can be rejected or deadlines can be missed.
How to avoid this:
- Prepare files early: Finalise documents at least a day before submission.
- Follow portal rules: Check file size, file type and naming requirements and whether zip files are allowed.
- Do a test upload (if possible): Upload a dummy file to confirm access and understand the process.
- Have backup plans: Two people should be ready to submit and take screenshots (and save confirmation emails/receipts) as proof.
Lack of feedback
The problem:
Authorities often provide limited feedback on why you were unsuccessful.
How to avoid this:
- Ask for a debrief: Request scoring details and comments (where available).
- Review internally: After each tender, discuss what worked and what did not.
- Track results: Keep records of win/loss patterns to improve future bids.
- Update your templates: Apply lessons learned to strengthen your next submission.
Conclusion
Winning public tenders is not just about offering the lowest price, it is about submitting a complete, compliant and well-prepared bid. By following the steps in this guide, you can reduce the risk of disqualification, manage uncertainty and improve your chances of success. Build your document library, use checklists and review every bid carefully. Over time, these habits will make tendering less stressful and more predictable, helping your business grow through public projects.
This communication is sent by Kreisson Legal Pty Limited (ACN 113 986 824). This communication has been prepared for the general information of clients and professional associates of Kreisson Legal. You should not rely on the contents. It is not legal advice and should not be regarded as a substitute for legal advice. The contents may contain copyright.
