Transparency In Tendering: How It Works At Sintek As with any type of construction project, heavy-industrial plants come in all shapes and sizes. For that reason, there’s no one-size-fits-all solution to preparing a proposal in response to a request for tender. However, with over a decade’s experience, the Sintek Group has established tried and tested processes for handling complex tender documents. So when a 500-page tender document does arrive at our office, we know how to handle it in the most efficient way. In this blog post, we provide an overview of a typical proposal process, and demonstrate how our team collaborates to ensure that we take account of the most detailed specifications and customer requirements. Five Key Areas When it comes to preparing a proposal for a large and complex industrial build, such as a cement factory, we ensure we address five essential areas: Basic Engineering Detail Engineering Electrical Engineering Permissions And Licencing Project Execution To avoid instability, safety concerns, negative environmental impacts, and costly repairs or alterations further down the line, we are well aware that any site for a new industrial plant requires proper engineering, design, planning, preparation, transport, construction and documentation. Where the project construction ground does not meet the required engineering performance standards, soil improvement works take place to mitigate factors such as permeability and compressibility. Getting this right is crucial to the success of a build. We’ve been involved in projects where before the work began, millions of dollars were spent on soil improvement. Whilst the engineering phases speak for themselves, ensuring the correct local permissions and licencing are in place is also essential for getting the project off the ground. In general, around 90% of these requirements are our customer’s responsibility, with the onus is on us, to check everything is in order before construction begins. Detailed Requirements When we’re handed a 500-page tender document, it goes without saying that any worthwhile response includes thoroughly detailed technical requirements. So how do we tackle it? Well for starters, as a global company, we drill down to procurement costs, for things such as raw materials, based on local prices. Through our network of local consultants, we negotiate the best prices on skilled labour and make checks regarding legal and regulatory compliance. We also factor-in our own supervisory leaders who can oversee international projects and ensure that every build conforms to our high internal standards. After all, every project carries our signature, and our long-standing reputation. That’s why we’re also committed to meeting applicable standards in environmental and social governance (ESG) Working at this level of detail in order to prepare a winning proposal requires a team of up to 60 people specializing in different areas, from engineering to legal and finance. Unsurprisingly, it also takes time, and only after our engineers have studied the tender can we begin to estimate the cost. However, the strength of our network means we can leverage existing, local relationships to bring our customers the best deal. But let’s not forget that we’re dealing with huge quantities here. In a recent project, 80,000 cubic meters of concrete and 18,000 tonnes of steel was used – making it bigger than a small town. For that reason, a typical tender for an industrial plant takes around 8 weeks to prepare. However, with our global network, we’re able to bring that down to around 6 weeks. As soon as a bill of quantities (BOQ) is prepared, we’re able to calculate the estimated costs of a project. Making use of our logistics arm, we can also accurately estimate delivery costs, using the most up-to-date information on the availability of products and materials. This means we can fine tune our pricing and scheduling right across the project, covering off multiple areas including logistics, and erection – upfront costs which typically run into millions of dollars. Commercial And Technical Offers Clearly, preparing a proposal in response to the tender documents for a heavy industrial plant is a huge and complex task. We also produce two kinds of offer: a technical proposal explaining all the items and work technically, and a commercial proposal containing detailed financial details. In order to produce a commercial offer, we have to not only plan but also provide foresight into the price fluctuations of material within a given time period. There’s a lot to consider, and much of the pricing depends on multiple variables which are outside our control. However, in the long run, this careful preparation takes the pain out of the process for the customer and investors because everything is transparent from the get-go. With 30 to 40 people having an input on a proposal, including lawyers, engineers, and economist, it is most definitely a collaborative effort on our part. It’s also worth remembering that at this stage, there’s still no guarantee that we’re going to win the contract. Typically, there are between 3 and 6 companies competing for the same tender. That’s why, at Sintek, we aim to prepare the most transparent and detailed offers. Sintek has over a decade of experience in preparing offers, so in newer markets, we can leverage experience from within the group to help with quality assurance, quality control, meeting design criteria, and oversight of engineering processes. Rounds Of Tendering In a world where we’re used to having everything on-demand, it can be hard to appreciate the length of time it takes to prepare an offer, especially when there are three rounds of tendering and a tight timeline. There’s no question that putting together proposals for a project, such as a cement factory, is a long and involved process which requires inputs from people across a range of disciplines. For a company like Sintek, putting together three rounds of proposals on this scale is a high-risk but high-reward activity. It’s fair to say that most companies probably win around 10% of their tenders, and often times projects shrink due to budgetary constraints. However, for Sintek it’s part of our DNA to take pride in our construction projects. We care about giving our customers the best value and seeing a project through to completion and in line with customer specification and expectations. Building a heavy-industrial plant in Europe? Let’s have a conversation. 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In any industry, reputations are easily made and easily broken. This is especially true when companies expand into new territories and global markets. Even for a long-established business with a reputation like the Sintek Group, it’s still important to deliver exceptional customer value, every time, to every customer, everywhere in the world. Building heavy industrial facilities, like cement factories, is a complex process with multiple moving parts which needs a multidisciplined team in order to carefully handle every phase, from the initial tendering to handing over the keys to a brand new turnkey facility. At Sintek, customer value lies at the heart of what we do. Here are four ways we aim to achieve that:1. Close Customer RelationshipsBy anyone’s standards, designing, engineering, and constructing a heavy industrial plant is a huge undertaking. Most clients approach us with a predetermined, but estimated budget for their build, and a typical tender runs to 500 pages. The Sintek team gets involved in the process from the very begining, going through every detail in order to understand exactly what’s required and collaborating with our customers to ensure their project becomes a reality. This extends from our engineering team right the way through to our project managers. Our offer preparation team aren’t just good at pushing products, the strength of our global network means they understand what we offer, and how it can take the pain of the process for our customers. Yes, we have a pre-existing reputation for high-quality industrial construction projects, but we don’t rely on reputation alone to keep customers happy. Through our collaborative ways of working, customers can get as involved or as hands-off as they wish. A closer working relationship with our customers leads to better value for them, especially if we need to adapt pricing to fit a revised scope.2. Transparent And Realistic PricingWe know that putting a large-scale industrial construction project out for tender requires detailed and thorough preparation, so we aim to deliver the most cost-effective solution for your budget. However, the impact of the global pandemic, war in Ukraine, and problems with supply chains in China mean that we have to be realistic and upfront about the true costs of materials and labour in different parts of the world. We take a consultative approach to our customers needs, and we’re realistic about the costs. Suppliers’ prices change daily, so estimates from the previous year are almost certainly out of date by the time we prepare an offer. In addition, the global demand for cement production is booming, so essential materials for building cement factories, such as cement itself, steel, motors, and electrical parts are facing huge demand and limited supply. For materials such as copper, we’re seeing price rises of up to 40%. For large companies, the different levels of authorization needed to increase budgets in line with these cost fluctuations means that getting the go ahead can take time and create friction in the construction process. Sometimes the need to reduce costs leads to a reduction in scale. However, it’s worth remembering that for Sintek our level of involvement, and the time it takes to manage your project, are the same, regardless of scale.3. Source Skilled LabourWhen it comes to the true cost of construction, our prices are determined by suppliers and labour costs, which vary greatly in different parts of the world. Our operations in Türkiye have a ready-made workforce with a reputation for high-quality workmanship. However, to comply with regulations, this workforce is not transferable to places like the UK and US, so we use our extensive network to source skilled labourers. Due to fluctuations in exchange rates and the relative strength of a particular country’s economy, we generally find that using local talent is not so competitive , which we take into account when estimating the cost of subcontractors. Our customers trust us to get the best prices for materials and labour. But they also understand that quality comes at a price. Using our deep and extensive network, we prefer to work with recommended subcontractors for international projects, rather than simply searching for them online, so we can be sure we get the right people for the right project, and meet the same exacting standards as our operations in Türkiye. For our customers, we act as trusted advisors drawing upon our established and experienced network, wherever we are in the world.4. Expert Project ManagementWhen you’re dealing with the construction of a heavy industrial plant, there’s a lot that can go wrong. Mistakes can be costly, both in terms of time, money, and even human life. With a turnkey solution from Sintek BV, every detail of your plant’s specification is handled for you, and we’re transparent from the get-go about the time it takes, and the ever-changing labour and materials costs associated with a highly-complex build on an industrial scale. No-one likes to hear that costs have gone up, but at Sintek BV we always aim to be transparent and realistic about global supply and demand, collaborating closely with our customers to provide the most cost-effective solutions for their budget.Find out more about our company and its commitment to providing exceptional customer value.
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