Are you undertaking a residential development project, and you are ready to go out to tender?

Well, stick around because in this article, I’m going to share six tips to ensure your building tender process is smooth and you secure the best builder for your project at the right level.

Let’s get into it.

So, you have secured the site, gained the required council approvals and have all the construction documentation in order (check this list of tender documents).

Perfect!

Next, you need to connect a builder to your project. An important note here is that you aren’t looking to connect your project with the cheapest builder – this will get you in trouble down the track.

cheapest builder not best

Imagine how difficult it will be to get your townhouse builder to the site to finish your project once they are halfway through and realise, they will not make any money. It’s a disaster, trust me!

Your goal is to secure the best builder you can at the market level.

The best way to do this is by running a construction tender process, which is essentially a process where you invite builders to quote or tender for your project.

tender process builder

Here are 6 tips that will ensure you give yourself the best chance of a successful outcome.

1.  List the Builders

You need to list the builders you plan to invite too tender. I suggest 3-4 qualified subdivision builders.

By qualified, I mean you have spoken to them before the tender, and they are committed and motivated to price and win the job.

2. Documentation Needs to be Correct 

Your documentation needs to be correct, and everything needs to be talking to each other. 

Working drawings, specifications, town planning, site surveys, soil tests, energy rating, basically, all the documentation you’ve been working on up until that point.

You would prefer to share a document that isn’t much use, then leave one out that may be of use.

3. Follow Your Builders up

builder follow up

Tip 3 – is all about follow-ups. It will be critical that you follow your builders up periodically throughout the process.

This allows you to answer any questions they have; it will also help you strengthen your relationship and keep them motivated to be working with you.

4. Seeking Post-tender Clarifications

Once you have received all tenders, it’s time to go through them thoroughly and seek post-tender clarifications from your builders.

At this point, you need to advise them that it may take 1-2 weeks to get back to them, always keeping them in the loop, shows respect. 

It also sets a standard of what you expect in return. As the old saying goes, “don’t tell them what to do, show them”.

5. Narrowing Your Group of Builders Down

Ideally, you can narrow it down to your one preferred builder so you can begin to work with them even closer to ensure everything is covered.

6. Provide Detailed Feedback

respect your builders

You must provide feedback to the unsuccessful builders. They have spent time and resource tendering for your multi-unit construction project.

If you want to keep the relationship strong and keep them interested in tendering for your projects moving forward, this is a must.

Once you narrow down to a preferred builder shifting your focus, there is a natural thing. Before you do – ensure you pay the unsuccessful builders the respect they deserve by providing that meaningful feedback.