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Decisions

How to Decide Go or No-Go on a Tender

Learn how to decide whether to bid on a government tender by assessing eligibility, costs, competition, risks, and your chances of winning.

By Deval Chauhan · Updated · 5 min read

Quick answer

Decide in two passes. First, test the hard gates: eligibility, documents, deadline and money, any one of which can make the answer No-Go. Second, score the tenders that pass on fit, margin, competition and effort, and bid only where the score justifies the work. Partner or form a JV only when the tender allows it and the partner closes a real gap.

Why the decision matters

Every bid costs something: days of preparation, a tender fee, EMD locked up, and the opportunity cost of the tender you did not prepare instead. Small firms often bid on everything that looks close and win little. Firms that decide deliberately bid less often and win a larger share of what they submit. A written Go or No-Go decision, made in under an hour, is the habit that separates the two.

Pass one: the hard gates

Answer each question yes or no. A single no means No-Go, unless a partner or a pre-bid query can genuinely change it.

  • Do we meet the turnover condition for the stated years, as averaged or as the best year, exactly as the tender words it?
  • Do we have completed similar work that matches the tender's own definition and value thresholds?
  • Do we hold every registration, licence, class and certification the tender names?
  • Can we furnish the EMD, or do we hold valid proof for an exemption?
  • Can we prepare a complete bid before the deadline without cutting corners?
  • Can we deliver within the stated period, at the stated locations?
  • Can we afford the performance security, the payment terms and the liquidated damages exposure?

The common disqualifiers

These reasons reject more bids than price does. Check them before you commit:

  • EMD missing, short, in a form the tender does not accept, or an exemption claimed without proof
  • Turnover taken from the wrong financial years
  • Experience that does not match the definition of similar work
  • Completion certificates without values or dates
  • Expired DSC, licence, ISO certificate or OEM authorisation
  • Declarations unsigned, undated or not on letterhead
  • A BOQ or price schedule altered from the portal's format
  • Conditional offers or deviations the tender does not allow
  • A missing site visit certificate or mandatory pre-bid attendance
  • Late or partial upload at the deadline

Pass two: score the tenders that pass

For tenders that clear every gate, score four factors from 1 to 5 and add them up. Agree a cut-off with your team, and stick to it.

  • Fit: how close is the scope to work you do every week?
  • Margin: at the price likely to win, what margin remains after all costs?
  • Competition: how many capable firms usually bid with this buyer, and who has won before?
  • Effort: how much new preparation does this bid need beyond your vault?

Reading the competition

Past awards from the same department tell you who usually wins, at what discount to the estimate, and how many firms usually bid. If one firm has won every similar tender from this buyer at prices below your cost, your margin score should reflect that. Our guide to pricing from past awards explains how to read that history.

When to partner or form a joint venture

A partner can close a gap you cannot close alone, such as turnover, a specific experience or a regional presence. First confirm that the tender allows a JV or consortium at all; many GeM bids and smaller works tenders do not. Where it is allowed, the tender sets rules on the lead partner's share, how turnover and experience are combined and joint liability.

Partner only when the other firm brings exactly what is missing and when you trust it to deliver. Every partner in a JV is usually liable for the whole contract. Subcontracting is the other route, but many tenders cap it or require approval, and it does not help with eligibility.

When to walk away

Some signals justify No-Go even when you technically qualify:

  • The specification matches one manufacturer's product exactly and you do not sell it
  • The timeline is unrealistic for anyone who has not already started
  • Past awards show winning prices below your cost of delivery
  • Payment terms or penalties would stretch your working capital beyond comfort
  • The buyer has a history of cancelling and retendering similar work

Write the decision down

Record the decision and the reason in your tender register, even for No-Go. After a few months you will see patterns: buyers you always pass on, gaps that keep blocking you, and the categories where you actually win. Those patterns tell you what to fix, for example a certification to obtain or a partner to approach. Start every decision with a careful ten minute read of the notice.

Common questions

What is a Go or No-Go decision in tendering?

It is the decision whether to prepare and submit a bid for a specific tender. A good one tests hard eligibility gates first, then weighs fit, margin, competition and effort before any time is spent on preparation.

Can a joint venture help me meet the turnover condition?

Only if the tender allows JVs or consortia, and only in the way it describes. Some tenders combine partners' turnover, others require the lead partner to meet a set share on its own.

Should I bid just to get noticed by a department?

Not if you cannot honour the bid. Withdrawing after submission can forfeit EMD or trigger suspension under a bid security declaration. Bid when you can win and deliver.

How long should a Go or No-Go decision take?

For most tenders, under an hour once your documents are organised. The first pass on hard gates usually takes the first fifteen minutes.

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