Online procurement platforms like Bonfire have changed the way teams run their bids and RFPs: paper, email, and Excel are being replaced by a streamlined and fully online software that supports the entire procurement process, saving teams significant time by making the buying process easier, simpler, and more efficient.
However when it comes to construction tenders, receiving valid bonds from bidding suppliers offline using paper can hamper your ability to get the greatest benefits from your platform.
These paper copies are not only time-consuming to obtain and submit on the vendor’s side, they add unnecessary complexity and prevent procurement teams from streamlining their entire process online.
Enter eBonding: an efficient, secure, and compliant alternative to paper bonds. Here’s how you can use Bonfire and eBonding to streamline your construction tenders online:
From paper to digital
eBonds are a recognized best practice. Simply put, eBonding brings paper bonds into a digital form.
eBonding providers offer a standalone online system where the parties to a bond can process their bonds in a digital format using digital signatures and seals. Vendors then obtain their bid bond as a PDF file, which has embedded digital certificates and can be verified online at any time during the time of the bond.
It is simple and easy for Bonfire users to use eBonds as part of their construction tenders:
When creating your project and requirements for suppliers, indicate that you require digital bonds as part of a submission (this differs little from the instructions you’d provide using paper bonds).
You can choose to direct suppliers to a specific eBonding provider, or allow suppliers to choose their own (we would recommend exploring and vetting eBonding providers to understand their approach, functionality, and specific compliance).
When setting up a construction tender in Bonfire, buyers can create an additional document slot for the bid bond during project setup (see below).
When the bidding vendor creates their submission, they upload their bid bond as a PDF into this document slot.
Once the project closes and evaluation begins, the buyer can then verify the bond with the eBonding provider and download an audit report as confirmation.
Benefits for vendors and buyers
With eBonding, vendors no longer need to rely on couriers or tie up staff time with the hand-delivery of paper bonds. Instead, they can submit their tenders and bid bonds from the comfort of their office, at the click of a button.
On the buyer’s side, eBonding allows procurement teams to run their entire construction tendering process within one online platform, eliminating hard-copies, boosting efficiency, and ensuring perfect compliance.
Looking to streamline your construction tendering process online? See how Bonfire can help you run projects twice as fast and drive cost savings up to 18%.
About the Author
Lindsay creates case studies, white papers, and other content to help modern sourcing and purchasing teams navigate the procurement technology landscape.More Content by Lindsay Kroes