Construction tenders that have the potential to become problem projects are fairly easy to spot.
At tender stage the tender package may:
- Be missing vital design information;
- Have onerous contract clauses;
- Have a very short tender period;
- Disjointed, tight or unachievable programme.
Then there are the constant requests to ‘sharpen your pencil’, can you offer any more discount, is this really your best price?
These are all obvious warning signs.
We’ve all seen those tenders which are obvious problem projects, how did they end up? When you receive tender requests like these saying no thanks is OK, there will be other projects there are other clients. Remember, one bad job can wipe out a year’s profits or worse.
If a project doesn’t feel right think seriously before saying yes – is it worth the risk? Once you sign the contract that decision can’t be undone. Learn to be aware & alert to these signs, so you can make an informed decision whether the project is one you want to tender for. Don’t be distracted by potential revenue / profit, this will soon be wiped out if the project ‘goes south’.