Back to News >

The construction industry’s approach to tendering has become a significant obstacle to progress. It’s inefficient, wasteful, and overly focused on cost rather than long-term value. Contractors invest time, money, and expertise into bids for projects that often don’t even materialise, while clients repeatedly sacrifice quality in favour of the cheapest price.

At Wade, we believe it’s time to do things differently.

The Flaws of Traditional Tendering

As it stands, the tendering process is full of inefficiencies. Frequently, projects go out to tender before critical details like scope or funding have been finalised, leading to unnecessary delays and wasted resources for both contractors submitting bids and clients reviewing them.

When projects do move forward, the lowest price often takes priority. While this approach may seem cost-effective at first, it sets the project up on the foundations for an adversarial environment. Suppliers may feel pressured to make unrealistic promises, cut corners, or deliver lower-quality results to maintain profit. Consequently, the impact is on the clients, who may find they face delays, disputes, and unexpected cost rises as the project progresses.

Additionally, the selection process itself can be a barrier to long-term collaboration. Supply partners with a proven track record with a client are often asked to re-tender, despite already demonstrating their capability. This not only further results in inefficiencies but also misses opportunities for more collaborative and streamlined negotiations based on past success.

A More Collaborative Way Forward

Rather than relying on outdated and adversarial tendering processes, the industry could benefit from prioritising collaboration over competition. Clients should consider facilitating construction through effective procurement strategies that allow them to work with supply partners to define clear objectives, align expectations, and build partnerships that create real value.

Take the majority of manufacturing projects as an example. These often come with uncertain budgets or unclear scopes due to limited information on process, which makes them ill-suited for traditional tendering. A more effective approach could involve shortlisting supply partners with the right experience and inviting them to express interest through a simplified process. By having open discussions around scope, budgets, and collaboration, the right supply partner can be chosen based on understanding and compatibility, rather than just the lowest price.

This isn’t just an idea; we’ve seen first-hand how collaborative approaches save time, reduce risk, and deliver better outcomes. By involving supply partners earlier in the process, clients gain valuable insights, refine project scopes, and avoid the common pitfalls of misalignment.

Building Trust, Value, and Results

When tendering becomes a race to the bottom, nobody wins. Clients get what they pay for, often at the expense of quality and long-term performance. Suppliers, meanwhile, are left chasing unsustainable margins. It’s a lose-lose scenario that the industry cannot afford to continue.

By rethinking how projects are tendered, we can create a construction process that values trust, transparency, and results. Collaboration leads to better alignment between clients and supply partners, fewer surprises during delivery, and stronger, more productive partnerships.

At Wade, we’re challenging the industry to leave outdated practices behind and adopt a smarter, more collaborative way of working. It’s time to stop rewarding the cheapest bid and start focusing on delivering the best outcomes. Ready to rethink your project approach? Get in touch with us to explore how a more collaborative tendering process can save you time, reduce risk, and deliver better results.