In a newly competitive Middle East the clarity and ambiguity of tenders for FM contracts and the affect on the bottom line is increasingly under the spotlight. fmME looks at the issues from a developer’s side and from the service provider’s, plus the impact owners associations are having on the sector. Top tips included…
Developer perspective:
Senior property contract specialist Linda Engstrom on bid preparation, the impact of substandard tender documentation and the recipe for success
Q: Does the tendering process in the Middle East differ from other countries?
A: The policies in the UAE are similar to rest of the world. With significant development in the real estate sector, the process of submitting and preparing bids has matured over the past few years, but there is scope for further improvements in commercial FM in respect of the process and the quality of bidding.
Q: What are the issues you face on receiving tenders?
A: The main issue is definitely quality along with compliance. Typically, the basic requirements of a bid aren’t considered, such as responding to specific tender requirements. Not many bidders consider the hot topics in the region such as sustainability, health & safety and energy management.
Q: What impact does a poor bid have on your business?
A: Non conformation of tender documentation impacts the review and assessment process. This results in not having a clear understanding of the capabilities and deliverables from the FM provider. In addition, opportunities of cost savings through value engineering or cost leveraging through the supply chain may also not be appropriately identified.
Q: How can the tendering process improve?
A: The tendering process can improve significantly through the consideration of the following:
Thorough understanding of the client’s requirement through a proper review of the tender documentation and discussions with the client concerning their specific objectives and requirement
Proper compliance to the tender documentation in the bidding process through the provision of appropriate level of details and understanding in the bid documents
Identification of the value added benefits or scope of cost reductions/resource rationalisation for the clients.
Q: What is the recipe for success?
A: As with most other industries in Dubai, the FM market has seen rapid expansion and quality has improved. This market has seen the introduction of large, corporate FM companies with international expertise which has changed the level of the playing field. Companies these days are having to work harder to win work. Producing great bids, or at least bids that are easy to understand, complying with instructions and clearly outlining your company’s competitive edge, is the recipe for tendering-success in today’s market.
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