Client procurement teams also need to try to balance judgements about contractors’ ability to deliver on time and to budget against the need to get the best price.
There is clearly no point in awarding a contract if it is so onerous the contractor can’t deliver on time or it results in the contractor falling in to financial difficulty before they can deliver.
Many procurement teams recognise that a good proxy measure for contractor reliability and accuracy in pricing is the productivity of their people. Research shows productivity is directly related to employee motivation, engagement and wellbeing – and procurement teams are increasingly seeking evidence that contractors are actively managing this relationship.
It’s often the case however, after the bid process is over, there is limited connection between the bid team and the contracting team doing the work. The commitments made about the motivation, engagement and wellbeing of workers take second place to operational priorities and may consequently be left incomplete, or unfulfilled.
Effective communication between estimating and contract teams is vital to the quality of bid submissions, as well as ensuring commitments to employee engagement and wellbeing are robustly implemented and managed.
A top down commitment to engagement and wellbeing means construction companies (and client procurement teams) can be confident their pricing is competitive, and secure in the knowledge that their productive staff can deliver.
The costs in both time and resources in building an engaged and healthy workforce are minimal compared to the risks and costs of poorly bid or delivered contracts.
What changes have you seen to the tender process?
Have you made any changes to the way you respond to bids?
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