Here’s everything you need to know about variant bids

Have you come across the term ‘variant bids’ when tendering for contracts, but are not sure what it means? If that’s the case, then we’re here to help. This blog will tell you everything you need to know about variant bids.

What are variant bids?

 If you’re familiar with the tendering process, you’ll know that vendors respond directly to the buyer’s specifications. However, in some cases, suppliers are able to propose a different approach for meeting the buyer’s needs. This is called a variant bid.

Depending on the contract at hand, buyers might accept variant bids that cover the entire contract. Alternatively, they might limit the variant bid to only part of the contract’s criteria, such as the pricing structure.

 When are variant bids used in procurement?

 Variant bids are submitted when a vendor has an alternative solution to offer the buyer. Typically, vendors will submit a variant bid when they believe their solution is more creative, innovative, or cost-effective.

In fact, variant bids are becoming more commonplace in procurement. This is because buyers are seeking the most economically advantageous tender (MEAT), as well as input from industry experts.

The benefits of variant bids

If you’re curious about variant bids, you might be wondering how they can benefit your business when tendering for work.

Here are the benefits of submitting a variant bid:

• Vendors have the opportunity to improve on the buyer’s specifications.
• It helps the buyer choose the MEAT.
• As it is a flexible approach to tendering, it persuades more suppliers to submit a response, especially SMEs.
• It increases opportunities for creativity and innovation.

In particular, vendors will benefit from variant bids if they don’t meet all of the buyer’s criteria. With a traditional tendering process, only suppliers that meet all of the specifications stand a chance of winning the contract. Submitting a variant bid allows vendors to demonstrate their strengths without being limited to strict criteria.

Are variant bids accepted for every contract?

While variant bids are becoming increasingly more common, not all buyers will accept them. This is because contracts are generally built around set outputs and specifications. When a vendor submits a variant bid, this makes it difficult for the buyer to compare each submission they receive. Therefore, it is difficult for the buyer to fairly evaluate each vendor.

If there is a risk of an unfair bidding process, buyers will be reluctant to accept variant bids. This is because unsuccessful vendors might challenge their decision, which will delay the start of the contract. Not to mention that it will lead to further costs for the buyer.

Before starting your tender response, it is important to check whether variant bids are accepted for the contract at hand. Public sector contracts should clearly state whether they accept variant bids or not.

However, it is not as clear with private sector contracts. If it is not clearly stated, you should be able to find more information in the tender documents. Otherwise, it’s possible to seek clarification directly from the buyer.

If you’re still unsure, it is best to assume that variant bids will not be accepted. Otherwise, you run the risk of spending your time and resources on a bid that has no chance of winning.

Should you submit a variant bid?

As long as the buyer is open to variant bids, there is no right or wrong answer. However, here are some things to think about before submitting a variant bid:

• Do you have an innovative solution to offer the buyer?
• Have you considered all aspects of your bid, from delivering the work to pricing?
• Does your solution offer the best value for money?
• Are you prepared to argue the case for a variant bid?

Need help with a tender?

Hudson Succeed is our bid writing consultancy, offering tender writing services and support to SMEs. Our Bid Writing Team has over 60 years of collective experience and proudly hold an 87% success rate.

Our tender writing services gives organizations of all sizes, at various stages of growth, a chance to succeed with tendering. Hudson Succeed can help if you’re completely new to tendering or aren’t seeing success from your current tendering responses.

RFP Mentor

If you’ve written a tender response and want someone to double-check it for errors, then Tender Mentor is for you. One of our Bid Writers will proofread it for any grammar or spelling mistakes. They’ll also check it’s in line with the specification before you submit.

RFP Writing

If you’ve found the perfect tender for your business, but don’t know where to start – send it our way. Our Bid Team will take care of it all for you, providing you with a full Tender Writing breakdown. They’ll let you know what they need from you and even submit it on your behalf!

RFP Ready

Our RFP Ready program is designed for those who are completely new to the tendering process. This program works with you to ensure you have everything in place to tender successfully. The program also includes bid writing support and a 12-month Discover subscription to a portal of your choice.

RFP Improvement

If you’ve already been tendering for work, but aren’t seeing success, our Tender Improvement program can help. During the course of the program, our Bid Writers will assess your previous submissions and supporting documents. They’ll then give you feedback and guidance on how to improve.

Both Tender Ready, and Tender Improvement offer:

• A 12-month subscription to the sector-specific portal of your choice.
• Access to our Global Bid Director and Senior Bidding Professionals with 60 years of bidding experience.
• A dedicated Bid Consultant with the program, lasting up to three months.
• The development of an organisation-wide bid library. This includes 3 case studies, 5 company CVs and 8 policies.

The business landscape has changed drastically over the last year. As a business development consultancy, we believe it’s crucial to offer businesses sustainable solutions for expansion. That has never been more appropriate than it is today.

Get in touch with our team, for a friendly chat about our services and discuss your bid management.