What are references?

References are previous projects or assignments successfully completed by a company or organization that are used to demonstrate that they have the required experience and expertise for a new assignment. In the context of procurement and tenders, references serve as evidence that a bidder has successfully completed similar work before. They play a crucial role in assessing a tenderer's competence and reliability and help the contracting authority make an informed choice.

How are references used in tenders?

Many bids and tenders ask for references as part of the bid. These references should show that the tendering company has completed similar projects and met specific criteria outlined in the tender documents. A reference may include a description of the project, the company's role, the outcome, and any challenges successfully overcome. Sometimes contact information from the client is also requested so the reference can be verified.

A typical reference includes:

• Project Description: A brief summary of the project, including its purpose, scope, and complexity.
• Role of the bidder: A detailed description of the work performed, responsibilities and value added of the company.
• Results and success stories: Concrete results such as on-time delivery, cost savings, improved efficiency or customer satisfaction.
• Contact information: Details of the client who can be contacted for confirmation of the reference.

Why are references important?

References are an important part of the tender selection process because they give the contracting authority insight into a bidder's experience and performance. They help verify the quality of the bidder and give confidence that the company is capable of performing the contract successfully.

Benefits of using references

• Evidence of experience: References show that a company actually has experience with similar projects, which increases the likelihood of success.
• Reliability and credibility: Providing references shows that a company keeps its promises and is trustworthy.
• Comparability: References allow contracting authorities to better compare tenders based on relevant experience and performance.
• Risk mitigation: References reduce risk for the contracting party because they show that the bidder has the required expertise and skills.

Types of references that can be used

References can come in different forms, depending on the nature of the contract and the requirements of the contracting authority. Some common types of references are:

Project references:

These are descriptions of previously completed projects similar to the current assignment. They include details about the nature of the work, the challenges, and the results.

Customer testimonials:

Testimonials from previous clients who positively evaluate the bidder's cooperation and performance. These types of references can be included to highlight client satisfaction and project success.

Certifications and recognitions:

While not always a direct reference, certificates or recognitions a company has received can also serve as evidence of competence and quality.

Evaluation reports:

Some organizations request evaluation reports from previous projects, in which the bidder's performance is assessed by the client.

Tips for using references in an entry

• Relevance: Make sure the references you include are relevant to the assignment you are tendering for. Choose projects that are similar in size, complexity and sector.
• Specificity: Be specific in the description of the reference. Mention concrete results, such as cost savings or improved efficiency, that you achieved.
• Client permission: Make sure you have permission from the client to use their project as a reference, especially if you share their contact information.
• Update regularly: Keep your references up-to-date and make sure they are recent and representative of your company's current capabilities.

What if a company has no references?

For newer companies or startups that do not yet have relevant credentials, it can be difficult to compete for larger tenders. In such cases, a company can consider alternatives, such as:

• Pilot projects or pilots: Conduct small projects to gain experience and build references.
• Collaborations: Collaborate with more experienced companies to bid jointly to benefit from each other's credentials.
• Internal experience: Internal projects or personal experiences of the team can sometimes also serve as references, if relevant.

Conclusion: What are references and why are they important?

References are essential in the tender process because they serve as evidence of a tenderer's experience, reliability and performance. They help the contracting authority make the right choice and provide assurance that the selected party can perform the contract successfully. It is important for bidders to provide relevant, detailed and up-to-date references to increase their chances of being awarded the contract.