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When should it reject an award?

Contract Execution

UF, reject an award of a public tender ... what brown, right? Everyone tells you that winning tenders is the dream of any company, but sometimes, believe me, the best you can do that is to say "thank you, but not thanks." And yes, it may sound weird, but there are situations that accepting that contract is basically to dig your own business tomb.

First, if the terms of the contract are a nightmare - impossible plants, ridiculous penalties for any delay, or conditions that smell like trap - well, better running. There are contracts that, if you accept them, you end up losing more than you earn. And here you don't have to be brave, but ready: you have to read the small print and think about the future, not only in the immediate money.

Other: the price. Because yes, winning a tender is great for the ego and the photo on LinkedIn, but if the price does not cover the expenses, what is the point? We are not NGOs. If after making numbers you see that the margin is so narrow that you don't even have a pin ... Flee. Really. That a bad award can leave you in red numbers and, above, with headaches.

And be careful, not everything is money. If you are missing people, technology, pasta or whatever to fulfill the contract, or try. Getting into a mess without resources is the best recipe to end fines, sanctions and your reputation for the soils. There is nothing worse than promising and not fulfilling, especially with the public sector, that they do not forgive one.

Legality? Yes, he also counts. If you see strange things in the process, practices that smell like scorching or doubts about whether everything is in order, the healthiest is to depart. Better to avoid legal trouble, than after the press covers do not take away anyone.

And finally, the strategy. That just now your company is changing course, reorganizing or betting on another sector. Are you going to get into a scrub that does not fit your plans just not to say no? Neither joke.

In summary: yes, win molla tenders, but not all are worth it. You have to think about it, consult with people who know, and not get carried away by emotion. Because sometimes, the smartest thing is simply to happen.

Marta Jiménez

Marta Jiménez

Expert in public procurement • Digital transformation of tenders • Trainer and author at Tendios

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