What rates to quote, while bidding for Tenders ?
The most crucial question that comes to the mind of every experienced and new vendor is, "What rates are to be quoted while bidding for a tender?" This is the single most important question and characteristic that is potentially going to decide the success or failure of a Firm/ Vendor/ Contractor.
Answer to this question is not that simple as many aspects related to work and the nature of firm have significant bearing on the outcome including aspects such as duration of work, site accessibility, nature and complexity of work, whether standard established procedure are to be followed or will include setting out new approach of work, safety aspects, availability of labour and material, transportation, mode of financing of the project, administrative set-up floating and managing the contract, design and consultancy required, level of supervision and quality control needed and many more. Additionally, there are several situations incurring extra expenditure that have not been foreseen while evaluating the cost of work before bidding.
In light of above, it is not always possible for a Firm, Vendor or Contractor to always successfully be able to figure out rates that are profitable at the same time competitive, specially for smaller firms that do not have significant expertise or setup. Hence, it is very crucial to get help from experts who have analyzed many works and tenders according to market trends of rates and nature of work, who have significant experience in deciding profitable and competitive rates that are economical to both, the client and the executing agency.