The Importance of Fair and Balanced Tenders

The Importance of Fair and Balanced Tenders

We all want to compete on a fair playing field. That means when it comes to the business-critical importance of tenders, it’s crucial that we implement a system that is both fair, and seen to be fair.

Biased tender processes are a significant global challenge. It’s generally accepted that the lower the number of bids, and less transparent a process is, the greater the opportunity for collusion and corruption that can significantly undermine the benefits of a proper tender process.

The importance of a fair and balanced tender system is headline news at the moment. The recent opening of bids for the exciting mega-infrastructure project, the KL-Singapore High Speed Railway, highlights the significance of demonstrating good processes. There are many ways that tenders can be managed to ensure transparency and appropriate oversight, and e-procurement is an important part of that.

Supporting the removal of bias

Public tender processes present a particular challenge. More than any other aspect of business this should be an area that stands up to scrutiny. Government projects often involve elements of critical national infrastructure, but they also mean that the money which funds them often comes from citizens themselves.

Malaysia’s government recently introduced an anonymous tender process to help ensure greater fairness in public projects. This ensures that decision makers in evaluating a tender can’t be unduly influenced by the company involved. The benefits of this process are even attributed to the successful completion on time and below budget of a recent MRT station project.

With Procurehere we help support that idea of evaluator objectivity through our evaluation processes. That means an evaluation committee comprised of multiple individuals can assess various envelopes and collaborate on evaluation as part of a tender, without revealing to other parties the details of those envelopes and their own thoughts. This process helps ensure the removal of potential bias fed by the decisions of other members in the committee.

Ensuring a level playing field

An important way to streamline tender processes is by ensuring all parties submitting bids are able to do so in a way that’s easy to reference. Often that can mean ensuring all parties are aware of and utilising comparable measurement systems.

A recent example of this can be found in Malaysia’s construction industry, where guidelines are being suggested to introduce a standardised measurement system for tender documents. By ensuring work is standardised and that scopes of measurement compare, we can help the buyer easily compare bids in a way that is transparent and easy to reference.

That simple idea of easily referenced and accessible tender bids forms a core part of Procurehere. By enabling access to bids within our user-friendly platform, buyers can easily cross-reference and evaluate supplier bids in a way which allows clear oversight. That means something as simple as comparing the prices in bills of quantities across multiple bids. The easier it is to reference for a buyer, the easier it is to produce a fair and balanced system that ensures the right decisions for your business.

Supporting balanced oversight

The opportunity for open access and transparent tenders is further enhanced by the option to host a public tender through Procurehere. Instead of directly inviting key suppliers to bid on a tender process, a public tender is open to wider participants on Procurehere. That means by hosting a public tender you unlock the opportunity for a wide range of suppliers to register their interest in a tender process. Once a supplier has registered their interest, a buyer can invite them to participate in the event.

Crucially it’s also vital to provide the ability to easily reference tender history as part of analysing and ensuring a fair tender has taken place. Procurehere helps support that process by providing a simple, cloud-based platform that allows your authorised users access to your activity history anywhere, anytime. That makes it far easier to assess and reference tender history compared to often complex paper-based or in-house systems.

A fair and balanced tender system is vital to maintain the integrity of your tender events, but equally important for ensuring that you deliver the greatest economic benefits. With e-procurement solutions like Procurehere, that opportunity for transparent oversight is now easier to access than ever before.