Biggest Mistakes People Make in Tenders, Bids, and Proposals

Bidding for contracts is a competitive and complex process, and small errors can significantly impact the outcome. Understanding and avoiding common pitfalls can improve your chances of winning tenders and securing valuable contracts. Here are the top 10 mistakes often made in tenders, bids, and proposals, and how to avoid them:

1. Failing to Understand the Client's Needs

One of the biggest mistakes in bidding is not fully understanding the client's requirements. Many bidders submit a generic proposal without customizing it to address the specific needs, objectives, and pain points of the client. Instead, take the time to read and analyze the request for tender (RFT) or request for proposal (RFP) documents carefully. Tailor your response to demonstrate a clear understanding of the client's goals and how your solution meets those needs.

2. Inadequate Research on the Client and Competition

Many bidders neglect to research the client's background, industry, and past contracts. Similarly, they fail to understand the competitive landscape. Conduct thorough research on the client’s business, their decision-making processes, and the competition. Understand the market dynamics and leverage this knowledge to position your proposal as the best solution.

3. Poorly Defined Value Proposition

Bidders often fail to articulate their unique value proposition clearly and convincingly. Instead of merely listing services or qualifications, explain the distinct advantages you offer over competitors. Highlight how your approach, experience, or technology adds unique value to the client and provides specific benefits that directly address their needs.

4. Ignoring the Evaluation Criteria

Each tender or proposal typically includes specific evaluation criteria that outline how bids will be assessed. Ignoring or misunderstanding these criteria can lead to a poorly structured response that fails to score well. Make sure your proposal addresses each criterion in detail, demonstrating how you meet or exceed the requirements.

5. Overlooking Compliance Requirements

Non-compliance with mandatory requirements is a frequent cause of disqualification. Common oversights include missing documents, incorrect formatting, or failing to provide specific information requested. Double-check the submission against the compliance checklist provided in the tender documents, and ensure that every requirement is met before submission.

The executive summary is often the first part of your proposal that evaluators will read. A weak or generic summary can fail to grab attention or convey the key benefits of your proposal. Craft a compelling executive summary that captures the essence of your offer, highlights your key differentiators, and provides a strong reason for the client to read on.

7. Inconsistent or Vague Pricing Strategies

Pricing is a critical component of any bid. Many bidders either overprice or underprice their proposals without a clear strategy or understanding of the client's budget and value perception. Develop a pricing strategy that aligns with the client's needs and expectations, and clearly justify your pricing with cost breakdowns, benefits, and value propositions.

8. Lack of Clarity and Coherence

A common mistake in proposals is poor organisation, confusing language, or technical jargon that obscures the main points. Keep your bid clear, concise, and easy to navigate. Use headings, bullet points, and diagrams to make your proposal reader-friendly. Avoid jargon and ensure that any technical details are easily understood by non-experts.

9. Underestimating the Importance of Project Management

Successful bids are not just about the written proposal; they require effective project management from start to finish. Many bids fail due to poor planning, inadequate team coordination, or last-minute submissions. Establish a clear project management plan for preparing your bid, set deadlines, allocate responsibilities, and build in time for review and revisions.

10. Failure to Learn from Feedback

After a bid is lost, many companies fail to seek or properly analyze feedback from the client. This oversight prevents learning from mistakes and improving future bids. Whenever possible, request a debrief from the client to understand why your bid was unsuccessful. Use this feedback to refine your approach, strengthen future proposals, and avoid repeating the same mistakes.

Don't Miss Out: Better Tenders, Bids, and Proposals Virtual Summit

If you want to go beyond the basics and learn from the best in the business, join us for the Projectory Pulse Better Tenders, Bids, and Proposals Virtual Summit on Thursday, 24th October. This essential event is perfect for business development managers, senior managers, marketing managers, and business owners involved in major projects across Australia.

The summit provides a unique opportunity to connect with leading experts in the field, offering invaluable tips, advice, and strategies to enhance your practices and boost your success in securing significant contracts.

Event details:

• Date: Thursday, 24th October
• Time: 1:00 AM AEDT / 8:10 AM AWST – 4:30 PM AEDT / 1:30 PM AWST
• Platform: Airmeet
• Price: Projectory subscribers: $110; non-subscribers: $127

Key Presentations and Speakers:

• Nigel Dennis, CEO of Bid Write Pty Ltd, will present "The Business of Bidding and The Metrics that Matter," focusing on optimizing bidding processes with data-driven metrics. Nigel, a leader in proposal management, brings three decades of experience and insights into developing long-term, sustainable bidding strategies.
• Nyree McKenzie, Co-founder & CEO of Bidhive, will present "Leveraging Macro Trends for Local Competitive Advantage." Nyree will explore how macroeconomic trends, ESG factors, and digitalization are reshaping procurement in the mining, resources, and energy sectors, and how businesses can leverage these changes for local competitive advantage.
• Dr. Heinz Herrmann, Associate Professor at Torrens University Australia, will delve into "Pricing Pressures and Price Modelling in Tenders." His session will cover advanced pricing strategies, including the 'Price-to-Win' approach and the use of analytical methodologies to enhance competitive bidding.
• Joanna Wells, Director of Taylor Wells Advisory, will present "Finding Your Pricing Power." Joanna will provide practical strategies for assertively setting pricing in tenders and align these strategies with overall business goals, drawing on real-world examples from major businesses.
• John Glenn, Managing Director of Kiah Consulting, will present "Beyond Tendering – Getting What You Want," focusing on negotiation strategies beyond traditional tendering to achieve desired outcomes and influence buyer perspectives in both business-to-business and business-to-government contexts.
• Roz Misiani, Principal of ProposalPro, will explore "Harnessing Project Management Principles for Successful Bidding." Roz will provide a framework for applying project management practices to improve bid outcomes, aligning bidding activities with organizational strategy and resource management.
• Leann Webb, Managing Director of Aurora Marketing, will offer insights in "Behind Closed Doors – Insights from Tender Evaluators," based on findings from Aurora Marketing's research series. She will share what evaluators look for in winning bids, common mistakes to avoid, and where bidders should focus to improve their chances of success.

Register Now!

Don’t miss this opportunity to gain actionable insights from industry leaders and transform your approach to tenders, bids, and proposals. Register now to secure your spot and elevate your chances of winning major projects!