Construction procurement is a sensitive subject involving multiple stakeholders and often comprising a large investment by the Client and not insignificant amount of time and effort on behalf of the bidders.
The objective of tendering is for the Project Owner to obtain multiple financial proposals from suppliers for carrying out defined (or sometimes not) works and be in a position to compare these proposals on an apples-for-apples basis with a view to appointing the bidder providing the most attractive offer.
For low-value or low-risk works, it is often perfectly acceptable for the Client’s Representative to call known suppliers and “get a quote”, however as works get more complex and valuable there will be more emphasis on a structured approach. It is therefore worth noting some points:
- Ambiguity
Contractors hate ambiguity in projects as every ill-defined element of works or contractual terms represents a potential area of dispute and cost to the Contractor. The Client and their team should endeavour to provide as much information on the design, site conditions and proposed contract terms and conditions as possible into the tender documentation.
- Transparency
It is important that a tender process is as transparent as possible. For the Client and their team this means establishing a selection criteria and pre-qualifying potential Contractors, setting out the works information without ambiguity and obtaining clearly priced proposals.
- Fairness & Consistency
All bidders invited to submit a tender should be provided with the same information and their tender be subject to the same rules – including abiding by the tender deadline and submitting a fully compliant bid.
- Credibility
Lastly, by running a professional and well-structured tender exercise the Bidders are more likely to want to win the contract and go that extra length to provide the best price possible in order to win.
Doyen Land advises Clients on property works procurement and can help with the design, specification and contract administration of all types of real estate projects. If you feel this would help your organisation please call us on 0207 947 4 947.