Residential Building Tenders
Introduction to Residential Building Tenders
Construction activity continues to remain one of the largest public expenditures by value and volume across the United Kingdom. Over recent years, demand for improved residential homes has skyrocketed, with the central government being responsible for 16 percent of all construction spending in the country.
Central government agencies remain some of the biggest buyers of private sector services, products, and materials. The diverse landscape of the construction industry provides various suppliers endless opportunities to bid for construction tenders, allowing them to grow their business, compete with other competitors, and provide the government with value for money.
Despite the various facets of the wider construction sector, the government encourages all construction businesses, including small-medium enterprises (SMEs) to bid for a variety of construction projects.
In this article, we’ll explore the various construction tender opportunities, benefits, and strategies businesses can apply with Tracker tools to successfully bid for residential building tenders.
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Significant opportunities for construction and residential building contracts
Construction and residential building contracts provide businesses in the private sector with a significant opportunity to foster a relationship with public entities, including central and local government agencies, boost their revenue, and increase their competitiveness.
Public sector contracts can vary depending on the entity providing the residential tenders notice. Construction contracts provided by public sector organisations can be as follows:
Multi-dwelling residential building
A multi-dwelling residential building can be categorised as a larger construction project and typically involves the construction of an apartment building, or similar that will be occupied by multiple residents at once.
Individual houses
Often smaller, and quicker to construct, individual houses are equipped with multiple rooms and will be occupied by a family or household. These contracts can vary, depending on the size of each dwelling, and the number of houses that are planned to be constructed.
Public and social housing
This is usually a blend between a multi-dwelling and single-family residential building. These residential buildings will typically be subsidised by the central government to provide residential solutions for individuals in a lower-income bracket.
Multi-purpose residential building
A mix of residential and commercial space. The multi-purpose use allows businesses to operate within the same premises as the residential housing.
Public residential housing for government employees
Another opportunity for residential building contracts is the construction of residential housing for government employees. These construction tenders are often published by central government agencies, such as the NHS or Ministry of Defence (MOD), and the intended use is geared towards housing government employees working in a related public service position.
What are the stages of bidding for residential building contracts?
Private sector businesses and suppliers looking to bid for a residential building contract will need to carefully consider the various requirements detailed in the bid information package. Seeing that there are multiple construction projects taking place at once, careful review of all contract details will enable you to apply for the appropriate contract, and follow the necessary steps to successfully bid for an upcoming residential building project.
Each of the following stages highlights what will be required by your business to complete the tender bidding process successfully.
Prior Information Stage
The first step is known as the Prior Information Stage or PIN Stage. During this stage, the public sector awarding the contract will communicate details relating to the contract, and inform suppliers about an upcoming contract opportunity and whether these are high-value contracts.
During this time, your business must gather the necessary documentation and information that can be used to prepare your tender bid response or application.
Pre-selection and Selection Stage
The pre-selection and selection stage will be a review of information supplied by construction companies. Usually public entities will review all previous work completed by your company, including relevant experience, accreditations, and the desired qualifications to complete the project.
Invitation to Tender Stage
Following the announcement of the shortlisted companies, suppliers will be informed of whether they have been selected to submit a tender proposal for the designated residential building contract.
At this point, businesses are encouraged to provide sufficient information regarding their technical abilities, pricing structure, and further details relating to their business. Furthermore, any supplementary information that can prove your experience and the necessary qualifications that align with the tender criteria.
Tender Evaluation Stage
Once the tender submission has closed, all tender proposals will be reviewed by the necessary government agencies. Based on the tender criteria, you will need to ensure that you have supplied enough information regarding your experience and ability to complete the project within the given period and budget.
Decision and Outcomes
Once all tender proposals have been reviewed, the residential building contract will be awarded. Keep in mind that all suppliers are scored during the evaluation process to ensure they meet the necessary quality assurance requirements of the contract.
Once a final decision has been made, a buyer will publish a Contract Award Notice, informing all suppliers and businesses about the number of proposal submissions, and the company that has been successfully awarded the residential building contract.
Strategies to improve bidding proposals for residential building contracts
To be successful in winning a residential building contract, you will need to submit sufficient information that highlights your abilities and experience in the construction industry.
Additionally, you can follow some of these strategies to help you put together a winning tender proposal:
Practice due diligence
Consider all the requirements of the contract, and what are all the responsibilities you will need to fulfill. Additionally, you will need to consider all the resources required, including financial and technical resources, and the workload of the project.
Demonstrate expertise and experience
Highlight not only your company’s experience but also include information regarding your employees’ expertise on the construction project.
Develop a dynamic pricing strategy
Public sector procurement typically looks for tender proposals that are MEAT or Most Economically Advantageous Tenders. Develop a pricing strategy that provides value for money, and ensures public entities your business is qualified enough to undertake the project.
Highlight roles and responsibilities
If required, highlight employee roles and responsibilities in the proposal, as this provides contracting authorities with insights into your business, and whether you have the necessary experience to fulfill tender requirements.
Partner with other contractors
To improve bid strength, partner with other contractors to increase resource availability. For smaller companies, partnering with a more established contractor will help improve the overall bid proposal, and highlight key strategies your business is following to win a residential building contract.
How to create a more successful residential contract proposal
On top of existing strategies, there are some additional steps that you can follow to create a more successful proposal and to find new contract opportunities.
Use spend analysis tools
For pricing, utilise spending and pricing analysis tools to better understand costs associated with residential building projects. Additionally, other tools such as tender alerts can help you find construction tenders with other public sector bodies.
Market trends
To create a more forward-looking proposal that considers future developing trends, include information that will highlight strategies you will use to navigate new trends and changing market behaviour.
Analyse historical data
As part of the proposal writing process, review and analyse historical data, and older proposals to better understand key strategies other businesses have used in the past when compiling a residential building contract proposal.
Emphasise important information
Don’t elaborate too much on unnecessary information that doesn’t directly add value to your proposal. Instead, emphasise important information that highlights your abilities, and answers key questions.
Next Steps
Once you have compiled all the necessary documentation, and have an understanding of how the construction procurement process works, you can start to compile your residential building contract proposal.
By making use of data analysis, and reviewing historical information, including awarded contracts, and winning proposals, you will have better clarity regarding the writing process, and what information to include in your proposal.
Ensure that you have developed a proposal that answers the key questions of the public buyer. Demonstrate your abilities, and develop a competitive pricing strategy that will help you stand out against other competitors.
Additionally, you can make use of tools such as Tracker Intelligence to find new construction opportunities and understand the construction procurement process.
