Tender is an open invitation to contractors to secure a deal for the best possible price. It’s a cut-throat competition. The designing of a road-map that is suitable for a competitive environment that is profitable and user-friendly for the customers (contractors) is the key objective of a Tendering & Estimation Module in a construction ERP S/W. There are quite many variables and factors to be taken into account before submitting the proposal for a tender.
It’s a hectic and arduous task to be accomplished by manual effort and management. Going digital and taking the support of a reliable technology is in the best interest of an aspiring contractor looking to expand his/her enterprise to the next level. Let’s dive deeper into the various benefits a contractor is exposed to if he/she incorporates the module into their operations.
The innovation of Tactive in making the process effective:
The processes adopted by the Tactive Construction ERP Software is simple yet very effective. All the processes right from the notification of tender, referrals, inquiries, etc, to the stage of publishing the tender results, are carried out. No process is left out.
Earnest Money Deposit Collections – the value of which should be 2% of the value of the estimated tendered cost (or) Rs. 10,00,000/- ($13,700 ), whichever is lower. It’s a form of security deposit against which the government offers the tender. Should the tenders fail to commence work, the amount will be forfeited. Using Tactive make payment requests for EMD, monitor and record the details, and set reminders to collect the EMD back.
RFQ – Request For Quote, used to receive comparative cost/price statements from multiple vendors, subcontractors, child entities, etc. to make the best cost-effective choice for offshoring a project for its effective execution. With Tactive one can create RFQs for vendors and analyze comparative statements from rate inquiry responses in real-time.
Inbuilt Rate Templates – A unique concept from Tactive. Create a consistent pricing system for all the variables, factors, and elements/items that are employed in the construction of any structure. Set a consistent price difference between these factors. Changing just the base price/cost of an item will show the result of the change in the difference in the price of the remaining items.
EG: If it takes 10 bricks worth $1 for each brick to raise a wall of 6-foot height, then any change made in the base price from $1 to say $2, then the total cost estimation for the construction would show as $20. Also, use workings from previous tenders and inbuilt templates for rate analysis. Tactive enables the end-user to fetch activity logs, material rates from the procurement history, previous tenders, and project actuals, all of which are stored (or) transferred digitally to the ERP during the time of implementation.
Tactive offers the provision for Activity Change Request Management for accommodating modifications and additions into the tenders. Apart from this, Tactive allows the users to generate alerts for tender submission on the due date through e-mail and/or SMS.
Documents and Reports generated and supported by Tactive Tendering & Estimation ERP Module:
- Lead/Enquiry Tracker – Track the tender order, its whereabouts, and status in real-time.
- Tender Enquiry Register – Receive and store tender inquiry documents that are dispatched by the government to the local tenders electronically for a fast and safe transaction.
- Inquiry Summary – Contains brief information about the best value for money
- Site Investigation Feedback – The report containing the analysis of the site, appraisal of data, assessment, and reporting that sheds clarity on the site, ground, and the nature of work to be carried out including the basic cost (labor, material, equipment, transportation, store, etc) of executing the work.
- BOQ Items Summary – Usually prepared by a cost consultant or surveyor. Document the materials, equipment, labor, rent, and overall expenses of the scheduled work.
- Activity Cost Analysis – Contains in-depth details of the expenses incurred for the execution of an activity. The report consists of cost details for all sub-activities by segregating them into smaller units. Also, assign a cost for the activities before the commencement of work.
- Abstract Report – Have a list of all the elements of tendering in a precise manner.
- Billing Schedule – Create a billing schedule for recurring payments made by the client, vendor, etc by tracking the billing/payments pattern of the clients or vendors. Managing the inventory or income for the products or services you are providing is made easier.
- Work Schedule – Define the time you expect your workforce to be at their work station. Customize the number of days and/or hours as deemed necessary.
- Resource Schedule – Predefine actions and methodologies to efficiently and judiciously allocate resources required for the completion of a task.
- Tender Submission Checklist – Make sure there are no stones left unturned. Generate the list of requirements and details to submit an online tender form.
- Tender Revision History – This allows the users to know what was revised, by who, compare multiple revisions, and revert to another revision if necessary.
- Tender Lost Bid Analysis – Look beyond price for the cause of lost bids. Analyze in detail the nitty-gritty reasons to win a competitive tendering scenario. Recover previous bid history to learn from mistakes to make amendments in future approaches to tenders.
- Tender S-Curve Simulation – Fast and easy way to predict liquidity (cash) flow at the pre-tender stage of a construction project.
- Tender Fund Flow Simulation – Statement showing all the various sources of funds, from where they were obtained, and the areas they are directed to. Any fluctuation or anomaly in the working capital will be recorded/detected.
- Vendor Enquiry Results – Tactive offers contractors an efficient way of managing vendor services and support activities like inquiries regarding payment status, issue resolution, etc.
Tactive is a suite of web and mobile-based construction ERP solutions that are designed to target the pain points faced by UAE/India based contractors and builders in the present-day technology-driven and highly competitive environment. Tactive is designed to be integrated with the existing operations procedures, culture, technologies of the contractor to help him/her with the smooth transition from the previous practices/methodologies to the ERP culture while maintaining seamless management of his/her construction activities all the while. This makes the integration, inclusion, import, and export of data in and out of the ERP system very effective to deliver the last mile advantage to the end-users.
If you’re not a Tactive ERP user yet, try the free demo now to experience this easy-to-use construction management software