Pre-contract award: a quality perspective - Revision history

ConSIG CWG at 17:03, 28 November 2024

2024-11-28T17:03:09Z

← Older revision		Revision as of 17:03, 28 November 2024
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	There are many types of commercial risks depending on the type of organization and its activities. The following are some of the most common in the construction industry:		There are many types of commercial risks depending on the type of organization and its activities. The following are some of the most common in the construction industry:

−	=== a) Fulfilling an ethical policy ===	+	=== Fulfilling an ethical policy ===

	The Bidder must establish whether it wants to work with this Client and its associates on this scheme. Depending on factors such as:		The Bidder must establish whether it wants to work with this Client and its associates on this scheme. Depending on factors such as:
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	Further information on anti-bribery management is contained in the following article: “Anti-bribery and ethics - a construction perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Anti-bribery_and_Ethics_-_A_Construction_Perspective\|https://www.designingbuildings.co.uk/wiki/Anti-bribery_and_Ethics_-_A_Construction_Perspective]] , October 2021. [1]		Further information on anti-bribery management is contained in the following article: “Anti-bribery and ethics - a construction perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Anti-bribery_and_Ethics_-_A_Construction_Perspective\|https://www.designingbuildings.co.uk/wiki/Anti-bribery_and_Ethics_-_A_Construction_Perspective]] , October 2021. [1]

−	=== b) Resourcing for the scheme: ===	+	=== Resourcing for the scheme: ===

	Competency – There is a need to ascertain whether professionals at all levels with the right skills and knowledge are available, or can be recruited, to work in the territory concerned. These are often referred to as Suitably Qualified & Experienced Persons (SQEP). By law, some countries require an Engineer in the design oversight role who is locally registered.		Competency – There is a need to ascertain whether professionals at all levels with the right skills and knowledge are available, or can be recruited, to work in the territory concerned. These are often referred to as Suitably Qualified & Experienced Persons (SQEP). By law, some countries require an Engineer in the design oversight role who is locally registered.
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	Similarly, again notably in the Oil & Gas industry, there are cases of restriction in the supply chain where equipment is provided by the owner of the asset. Besides any possible concerns around corruption, the bidding organization would want to have involvement in the quality assurance of that equipment as it will have an impact on the successful delivery of the scheme.		Similarly, again notably in the Oil & Gas industry, there are cases of restriction in the supply chain where equipment is provided by the owner of the asset. Besides any possible concerns around corruption, the bidding organization would want to have involvement in the quality assurance of that equipment as it will have an impact on the successful delivery of the scheme.

−	=== c) Procurement gateways ===	+	=== Procurement gateways ===

	The commercial position (pricing) along with the Bidder’s technical capabilities and risk assessments for the scheme are assessed at procurement gateways. These are decision points in the bid where formal reviews are required which culminate in authorization to proceed with the bid being given by management. They are thresholds to be crossed, e.g. before committing resources to develop the bid response further.		The commercial position (pricing) along with the Bidder’s technical capabilities and risk assessments for the scheme are assessed at procurement gateways. These are decision points in the bid where formal reviews are required which culminate in authorization to proceed with the bid being given by management. They are thresholds to be crossed, e.g. before committing resources to develop the bid response further.
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	* Invitation To Tender (ITT).		* Invitation To Tender (ITT).

−	=== d) Privacy & information ===	+	=== Privacy & information ===

	The bid team must consider whether it will handle personal data (to or from the client). If it will, it must organize to discharge its obligation to protect the data during handling and while retained in its care. It also has a duty to return or securely destroy that information when no longer required. A risk assessment may be used to plan this protection.		The bid team must consider whether it will handle personal data (to or from the client). If it will, it must organize to discharge its obligation to protect the data during handling and while retained in its care. It also has a duty to return or securely destroy that information when no longer required. A risk assessment may be used to plan this protection.
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	The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.		The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.

−	=== a) Health & Safety and technical risks: ===	+	=== Health & Safety and technical risks: ===

	Health & Safety risks can often be associated with technical risks. Technical risks can include:		Health & Safety risks can often be associated with technical risks. Technical risks can include:
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	* Site safety – including the process for appointment of the Principal Contractor.		* Site safety – including the process for appointment of the Principal Contractor.

−	=== b) Quality risks: ===	+	=== Quality risks: ===

	In response to the Grenfell Tower fire disaster in London, UK in 2017 the Construction Industry has released a new standard, BS 99001:2022 – Quality management systems – Specification for the application of BS EN ISO 9001:2015 in the built environment sector [2]. It augments the generic ISO 9001 and, in the case of bidding, it sets out formally additional requirements for review when providing products and services, including materials and components. Some additional items it focuses on are:		In response to the Grenfell Tower fire disaster in London, UK in 2017 the Construction Industry has released a new standard, BS 99001:2022 – Quality management systems – Specification for the application of BS EN ISO 9001:2015 in the built environment sector [2]. It augments the generic ISO 9001 and, in the case of bidding, it sets out formally additional requirements for review when providing products and services, including materials and components. Some additional items it focuses on are:
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	Further information on risk assessment can be found in the following article: “Risk assessment: a quality perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Risk_assessment:_a_quality_perspective\|https://www.designingbuildings.co.uk/wiki/Risk_assessment:_a_quality_perspective]] , November 2022. [4]		Further information on risk assessment can be found in the following article: “Risk assessment: a quality perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Risk_assessment:_a_quality_perspective\|https://www.designingbuildings.co.uk/wiki/Risk_assessment:_a_quality_perspective]] , November 2022. [4]

−	=== c) Environmental risks, including sustainability and social value opportunities ===	+	=== Environmental risks, including sustainability and social value opportunities ===

	An assessment in overview of the most significant aspects and impacts arising for the project is needed at the Pre-contract award stage to guard against surprises later, at the construction stage. This would include:		An assessment in overview of the most significant aspects and impacts arising for the project is needed at the Pre-contract award stage to guard against surprises later, at the construction stage. This would include:
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	Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.		Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.

−	=== a) Bid matched to Client’s requirements ===	+	=== Bid matched to Client’s requirements ===

	It may seem obvious, but a well-written proposal addresses the Client’s requirements directly and considers their explicit and implied expectations. The Client will after all be assessing the bid on this basis, so it is important to make it easy for them. The proposal should also, where necessary, set out the Bidder’s understanding of certain key points such as risks, for the avoidance of doubt.		It may seem obvious, but a well-written proposal addresses the Client’s requirements directly and considers their explicit and implied expectations. The Client will after all be assessing the bid on this basis, so it is important to make it easy for them. The proposal should also, where necessary, set out the Bidder’s understanding of certain key points such as risks, for the avoidance of doubt.
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	The focus should be on delivering what the Client wants, not what the Bidder wants the Client to want.		The focus should be on delivering what the Client wants, not what the Bidder wants the Client to want.

−	=== b) Bid structured to protect and enhance the bidding company’s interests ===	+	=== Bid structured to protect and enhance the bidding company’s interests ===

	At this stage, all the actions necessary to mitigate the risks identified in the bid must be understood and considered achievable, both practically and economically.		At this stage, all the actions necessary to mitigate the risks identified in the bid must be understood and considered achievable, both practically and economically.
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	It is good practice to prepare for the likelihood of mobilization should the contract be won.		It is good practice to prepare for the likelihood of mobilization should the contract be won.

−	=== a) Plan the handover ===	+	=== Plan the handover ===

	At this point, even though the award decision is not known, it is important to prepare for a positive outcome to the bid, by organizing all the information that would be needed by the construction team, so they are ready to deliver what the bid promised as soon as the go ahead for the scheme is received:		At this point, even though the award decision is not known, it is important to prepare for a positive outcome to the bid, by organizing all the information that would be needed by the construction team, so they are ready to deliver what the bid promised as soon as the go ahead for the scheme is received:
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	Many organizations have a Customer Relationship Management (CRM) system on which to track the status of the bid. These can enable reminders to be set at defined intervals, e.g. to act as prompts to follow up on progress with the client.		Many organizations have a Customer Relationship Management (CRM) system on which to track the status of the bid. These can enable reminders to be set at defined intervals, e.g. to act as prompts to follow up on progress with the client.

−	=== b) Contract award ===	+	=== Contract award ===

	On receipt, the contract itself (the acceptance by the client) needs to be reviewed by the bidding organization to ensure it has a comprehensive understanding of what is required to be delivered. Clarifications may be sought from the client to ensure both parties have a shared understanding.		On receipt, the contract itself (the acceptance by the client) needs to be reviewed by the bidding organization to ensure it has a comprehensive understanding of what is required to be delivered. Clarifications may be sought from the client to ensure both parties have a shared understanding.
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	Further development of the planning, including resource scheduling, can now begin.		Further development of the planning, including resource scheduling, can now begin.

−	=== c) Strengths and weaknesses ===	+	=== Strengths and weaknesses ===

	When the result of the bid is known (positive or negative) the bidding organization should request feedback from the client in order to learn from the client what attributes of the proposal made it attractive to them, and/or where thy felt it could be improved upon. This knowledge can assist with framing responses to future bid activity with a range of clients.		When the result of the bid is known (positive or negative) the bidding organization should request feedback from the client in order to learn from the client what attributes of the proposal made it attractive to them, and/or where thy felt it could be improved upon. This knowledge can assist with framing responses to future bid activity with a range of clients.

ConSIG CWG at 17:01, 28 November 2024

2024-11-28T17:01:40Z

ConSIG CWG at 16:59, 28 November 2024

2024-11-28T16:59:29Z

ConSIG CWG at 16:57, 28 November 2024

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ConSIG CWG at 16:53, 28 November 2024

2024-11-28T16:53:03Z

ConSIG CWG: Created page with "Contents Introduction 1. Input: the invitation to bid - Understanding the Client’s requirements 2. Identifying and mitigating commercial risks that arise from the bid, inclu..."

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Created page with "Contents Introduction 1. Input: the invitation to bid - Understanding the Client’s requirements 2. Identifying and mitigating commercial risks that arise from the bid, inclu..."

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Contents

Introduction

1. Input: the invitation to bid - Understanding the Client’s requirements

2. Identifying and mitigating commercial risks that arise from the bid, including oversight of the supply chain

a) Fulfilling an ethical policy

b) Resourcing for the scheme

c) Procurement gateways

d) Privacy & information

3. Identifying major safety, quality, environmental and technical risks to be mitigated for the scheme

a) Health & Safety and technical risks

b) Quality risks

c) Environmental risks, including sustainability and social value opportunities

4. Output: addressing Client requirements in the proposal (offer) with risks and opportunities considered

a) Bid matched to Client’s requirements

b) Bid structured to protect and enhance the bidding company’s interests

5. Activities while awaiting the bid decision and on receipt of that decision

a) Plan the handover

b) Contract award

c) Strengths and weaknesses

Summary

Reference sources

-----
Introduction

This article seeks to explain the process of responding to a tender with a focus on potential risk areas such as commercial, technical, safety, quality and environmental. It concentrates on a tendering or competitive bidding approach. It does not consider the financial aspects of bidding.

The Pre-contract award stage covers the activities from receiving an invitation to submit a proposal through to the contract award decision. It is about offer and acceptance, offer by the bidding organization (Bidder) and acceptance by the Client. This article will concentrate on identifying quality-related aspects that apply from receiving the invitation to managing the submission of the offer in response. It is assumed that any prequalification stage in the bidding process has been completed such that initial client/bidder requirements can be met prior to the formal request to bid being received.

Every client wants to receive a reliable and effective asset for there to be a successful result from their project, but this is not enough. They are also seeking to enhance their own reputation with their stakeholders as a further benefit. This therefore presents an opportunity for the Bidder not only to protect its own interests but also to enhance its reputation at the same time. To achieve both, there are five factors that need to be considered by the Bidder at the Pre-contract award stage.

Table 1 - Five factors that need to be considered by the Bidder at the Pre-contract award stage.

[[File:Five factors pre-contract.jpg]]

Note: These five factors are used as the structure for this article.

1. Input: The invitation to bid - Understanding the Client’s requirements

There are many ways an invitation to bid can be received, e.g. automatic notifications via electronic portals, notices in industry publications, in writing and even verbally.

Understanding the Client’s needs and wants is important, e.g. calling on previous experience of working with this Client, or type of Client, to arrive at a view of their requirements.

The sophistication of the Client’s understanding around the proposed work needs to be considered early. The Client’s stated requirements can be impacted by the level of knowledge within its organization. Dependent upon the 'intelligence' of the client it may be necessary to consider their needs, e.g. in a workshop, rather than address the stated requirements alone. Consideration must be given to the client stated requirements versus their actual needs.

Formal procurement processes allow for submitting enquiries when requirements are not clear to the Bidder. Large Government contracts often have an electronic mechanism for enquiries. Alternatively, the Bidder can ask the Client directly. Many clients are not experts in all the fields of work they are commissioning so will likely welcome your efforts to clarify their position.

It is important to remember that understanding client requirements includes identifying opportunities beneficial to the scheme as well as risks. Standards and specifications stated in the client requirements must also be taken into consideration.

The first control point (gateway) is for the prospective Bidder to decide whether it is worthwhile for them to commit resources to putting a proposal together. Primarily, this involves a judgement for the Bidder about whether it and its subcontractors have the necessary capabilities (competence) to do the work for the client and whether it has the resources available (labour, equipment and materials). The purpose is to determine whether the task is achievable and if it is financially viable for the Bidder, i.e. offers good value for the return on the investment it will need to make.

An invitation is usually time-limited as to when a response is required. This means the bid team needs to get organized promptly. It also introduces an element of stress that needs to be managed if a good proposal is to be submitted on-time.

2. Identifying and mitigating commercial risks that arise from the bid, including oversight of the supply chain

The response to the Client’s invitation begins with a review of the client’s contractual terms.

This includes understanding any special commitments. These are terms placed on the bidder that are additional to the norm, e.g. responsibility for managing the provision and installation of building cladding, issuing certificate(s) for work performed etc.

The nature of the risks introduced by this work need to be ascertained (via a formal risk evaluation process) – for both Client and Bidder. The Bidder must understand the risks for both organizations in order to deliver a project that serves the Client’s purpose and does not harm the interests of the Bidder.

There are many types of commercial risks depending on the type of organization and its activities. The following are some of the most common in the construction industry:

a) Fulfilling an ethical policy

The Bidder must establish whether it wants to work with this Client and its associates on this scheme. Depending on factors such as:

* The source of funding for the scheme being transparent, the type of work (market sector) and the customs.
* Laws and codes of practice of the territory within which the work will take place.
* Bribery and corruption on the part of others is a threat to the bidding company’s reputation by association. Measures against bribery and corruption are also known as anti-fraud or anti-collusion.

Due Diligence is a research process used to identify and mitigate these ethical risks in the company’s working relationship with the client and other parties to the scheme. Due Diligence can extend from internet searches by an individual to a more sophisticated approach by the company in subscribing to electronic search tools specializing in risk. The latter can give a profile of the client’s market challenges and those of other parties’ businesses, and their ethical behaviour. These tools can also provide an understanding of the territory where the scheme is to take place.

The due diligence process can also be applied to suppliers and subcontractors.

Overall, as part of an anti-bribery risk assessment, this information can enable the company to arrive at the level of risk presented by the scheme. Then it will also be clear where actions (countermeasures) are needed whether it be with the client or in dealings with the supply chain.

Avoiding Conflict of Interest (COI), e.g. guarding against using an individual(s) on the bid who has been working on another part of the scheme in question or where that individual has a relative involved in decision making at the client. In both examples, this could give them ‘Insider’ knowledge and therefore provide the bidding organization and its partners with an unethical advantage.

It may be the case that effective mitigation cannot be identified for the risks, e.g. for commercial ones such as bribery and corruption, even after discussion with the client. In such a circumstance, the best option may be to withdraw from the bidding process.

Further information on anti-bribery management is contained in the following article: “Anti-bribery and ethics - a construction perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Anti-bribery_and_Ethics_-_A_Construction_Perspective|https://www.designingbuildings.co.uk/wiki/Anti-bribery_and_Ethics_-_A_Construction_Perspective]] , October 2021. [1]

b) Resourcing for the scheme:

Competency – There is a need to ascertain whether professionals at all levels with the right skills and knowledge are available, or can be recruited, to work in the territory concerned. These are often referred to as Suitably Qualified & Experienced Persons (SQEP). By law, some countries require an Engineer in the design oversight role who is locally registered.

At this early stage it is necessary to consider where the workforce will be recruited from to prevent any association by the bidder and its subcontractors with ‘Modern Slavery’. Modern slavery can include employing people on poor wages and in harsh conditions. More widely, the term encompasses

trafficking and slavery, servitude and forced or compulsory labour. Avoiding such practices is of particular concern to the construction industry which is vulnerable in this area. For instance, it is important to monitor compliance with living wage legislation (or higher standards) in countries such as the UK.

There is a need to be vigilant where there is a project policy in place to procure locally to the scheme as potential subcontractors and suppliers may not be known to the bidding organization. Nevertheless, the benefits such a policy brings to local communities must be recognized.

Procurement strategy: The technical ability of potential Subcontractors and/or suppliers to meet quality requirements needs to be assessed. Evidence of past performance when working with the organization (available in supplier records) is key information for gauging their ability to deliver to the agreed specifications on this scheme, and to do that on time and on budget. If the Subcontractor / supplier is new to the organization then a more in-depth assessment of performance will be required, likely including an audit or a wider survey of any potential key suppliers’ competencies and capacities.

Purchasing strategy: Resource planning is necessary to identify the availability of relevant physical resources, including materials, equipment and technology which are essential to delivering the project successfully. It may be necessary to identify critical paths in planning for items with a long lead time. It is also important to factor in price inflation for the duration of the scheme for the products to be purchased.

In the Oil & Gas industry, for instance, it is not uncommon for there to be a limited market with only a single source supplier available for some technical activities. This means established relationships are important to be able to draw upon to ensure the organization has a supplier at all, that the quality of their work is known and that their cost is at a competitive rate.

Similarly, again notably in the Oil & Gas industry, there are cases of restriction in the supply chain where equipment is provided by the owner of the asset. Besides any possible concerns around corruption, the bidding organization would want to have involvement in the quality assurance of that equipment as it will have an impact on the successful delivery of the scheme.

c) Procurement gateways

The commercial position (pricing) along with the Bidder’s technical capabilities and risk assessments for the scheme are assessed at procurement gateways. These are decision points in the bid where formal reviews are required which culminate in authorization to proceed with the bid being given by management. They are thresholds to be crossed, e.g. before committing resources to develop the bid response further.

Procurement gateways can be internal to the bidding company, e.g. before submission of the proposal, and external as part of the requirements of a client’s procurement portal, typically the case with Government bodies for public sector procurement. Stages for some other gateways are:

* Expression of Interest (EOI).
* Pre-Qualification (PQ) for a tender, which often requires the completion of a questionnaire.
* Invitation To Tender (ITT).

d) Privacy & information

The bid team must consider whether it will handle personal data (to or from the client). If it will, it must organize to discharge its obligation to protect the data during handling and while retained in its care. It also has a duty to return or securely destroy that information when no longer required. A risk assessment may be used to plan this protection.

The client may require the signing of a confidentiality agreement by a Director on behalf of the bid organization or even by each member of the team. The implications of such a legally based document need to be assessed before signing.

3. Identifying major safety, quality, environmental and technical risks to be mitigated for the scheme

The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.

a) Health & Safety and technical risks:

Health & Safety risks can often be associated with technical risks. Technical risks can include:

* Innovation: i.e. understanding what potential there may be to construct in a new way (e.g. using unproven technology) that saves cost to the benefit of the client. As it’s new, this introduces a level of risk because it has not been done before. This may be mitigated by putting together a team with a high competence level and having extra review (hold) points to gauge progress.
* Digital: exploiting the potential for automation in construction can have the benefit of addressing risk.
* Location / geography: ascertain whether the construction site is accessible and of suitable terrain in which to work. This may present geotechnical challenges (e.g. tunnelling in sands and clay as with a Metro scheme) or excavating volcanic rock (e.g. as for a hydropower project).

Safety considerations at the Pre-contract award phase will provide an overview of:

* Personal safety – Health & Safety risk assessment, e.g. if site surveys are necessary in advance of contract award, to establish hazards presented by the location, and the issue of a Risk Assessment and Method Statement (RAMS) if any work is to be carried out.
* Design safety – including identifying who will perform the role of Principal Designer.
* Site safety – including the process for appointment of the Principal Contractor.

b) Quality risks:

In response to the Grenfell Tower fire disaster in London, UK in 2017 the Construction Industry has released a new standard, BS 99001:2022 – Quality management systems – Specification for the application of BS EN ISO 9001:2015 in the built environment sector [2]. It augments the generic ISO 9001 and, in the case of bidding, it sets out formally additional requirements for review when providing products and services, including materials and components. Some additional items it focuses on are:

* Looking at the scheme for its relevance to the whole project lifecycle, not just delivery.
* Again, considering the whole life cycle of the asset through to decommissioning and re-use.
* How straightforward the scheme is to construct (Buildability).
* Taking into account in the planning, the needs of stakeholders who may be impacted by the scheme.

Specifications and standards: There is a need to ensure future compliance by the scheme with specifications and standards. This starts by understanding at the Bid stage the applicability of any the client has quoted in the tender document and seeking to identify others considered relevant.

Where work is outside the base country, it is also important to gain an understanding of laws, regulations and standards that apply in the territory where the scheme will be constructed.

Design: A concern for many Contractors is insufficient checking and approval of the design leading to a potential error going undetected and entering the construction process. Whilst responsibility for this lies with the Designer, it is important the Contractor builds a relationship with them based on trust to provide a degree of assurance.

Partnering: Ideally supply chain partners will work collaboratively to deliver the project. There is a standard for this: ISO 44001:2017 – Collaborative business relationship management systems – Requirements and framework [3] – It mandates the key document for managing collaboration between the parties as the Relationship Management Plan (RMP), preparation for which is begun at the Pre-contract award stage.

Further information on risk assessment can be found in the following article: “Risk assessment: a quality perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Risk_assessment:_a_quality_perspective|https://www.designingbuildings.co.uk/wiki/Risk_assessment:_a_quality_perspective]] , November 2022. [4]

c) Environmental risks, including sustainability and social value opportunities

An assessment in overview of the most significant aspects and impacts arising for the project is needed at the Pre-contract award stage to guard against surprises later, at the construction stage. This would include:

Environmental, Social value & Governance (ESG)

* All organizations are required by law to ensure that they prevent pollution. ESG goes beyond environmental risk assessment to look at sustainability opportunities and the value of the scheme for its impact on society, including local residents. An example would be the benefits of connectivity of a new rail scheme.

Climate impact and resilience:

* In particular, estimating the amount of carbon which will be used by the scheme and released by it in the manufacturing and construction processes as well as in operation. Reducing the use of steel would be an example of a mitigation measure here.
* Assessing what is required technically for the finished construction to ensure it is resilient to the environmental impacts given the projected levels of climate change, e.g. understanding the construction methods and procurement standards necessary to resist the impact of climate change.

4. Output: Addressing Client requirements in the proposal (offer) with risks and opportunities considered

Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.

a) Bid matched to Client’s requirements

It may seem obvious, but a well-written proposal addresses the Client’s requirements directly and considers their explicit and implied expectations. The Client will after all be assessing the bid on this basis, so it is important to make it easy for them. The proposal should also, where necessary, set out the Bidder’s understanding of certain key points such as risks, for the avoidance of doubt.

The focus should be on delivering what the Client wants, not what the Bidder wants the Client to want.

b) Bid structured to protect and enhance the bidding company’s interests

At this stage, all the actions necessary to mitigate the risks identified in the bid must be understood and considered achievable, both practically and economically.

Opportunities are usually considered in tandem with risks and the resulting understanding of the potential benefits presented by the scheme can differentiate the bid from a competitor’s offering, i.e. in marketing terms an opportunity can prove to be a Unique Selling Point (USP).

In the same way, plans for effective risk mitigation, particularly of technical risks, can also set the proposal apart from rival bidders.

Learning gained to date should be assimilated into the bid by calling on:

* Knowledge from earlier bids of this type, both successful and unsuccessful ones (i.e. an understanding of why that was).
* Experience gained from previous technical work similar to this scheme.

5. Activities while awaiting the bid decision and on receipt of that decision

It is good practice to prepare for the likelihood of mobilization should the contract be won.

a) Plan the handover

At this point, even though the award decision is not known, it is important to prepare for a positive outcome to the bid, by organizing all the information that would be needed by the construction team, so they are ready to deliver what the bid promised as soon as the go ahead for the scheme is received:

* Clearly defined Scope of Work.
* Schedules – programme and deliverables.
* Any technical documentation, including drawings provided by the client in the tender.
* Risk and Opportunity (RNO) assessments.
* Record of the review of the risks introduced by commercial terms - to inform the review that will take place later, on award.

Many organizations have a Customer Relationship Management (CRM) system on which to track the status of the bid. These can enable reminders to be set at defined intervals, e.g. to act as prompts to follow up on progress with the client.

b) Contract award

On receipt, the contract itself (the acceptance by the client) needs to be reviewed by the bidding organization to ensure it has a comprehensive understanding of what is required to be delivered. Clarifications may be sought from the client to ensure both parties have a shared understanding.

Furthermore, the successful Bidder, must also check the contract to confirm whether there are any variations to what was proposed. If there are, there needs to be a process for managing change, including internal authorization by the Bidder, to accept those changes (known as Change Control).

This review is also sought by ISO 9001:2015 – Quality management systems – Requirements [5] which requires a review before committing to supply products and services to a client. That commitment would be the signing of the contract.

Further development of the planning, including resource scheduling, can now begin.

c) Strengths and weaknesses

When the result of the bid is known (positive or negative) the bidding organization should request feedback from the client in order to learn from the client what attributes of the proposal made it attractive to them, and/or where thy felt it could be improved upon. This knowledge can assist with framing responses to future bid activity with a range of clients.

Summary

Pre-contract award is the initial tender stage for a construction scheme that must be managed effectively for the Bidder to be successful in winning the work itself. Done well, the Pre-contract award stage mitigates risk areas such as commercial, technical, safety, quality and environmental and identifies value for both client and bidder, and in more than just financial terms.

The following five factors are important at this stage:

# Input: Understanding the Client’s requirements in the invitation.
# Identifying and mitigating commercial risks, including oversight of the supply chain.
# Identifying other major risks to be mitigated.
# Output: Addressing Client requirements with risks and opportunities considered.
# Activities while awaiting the bid decision.

It may be beneficial that an internal review is conducted by the Bidder prior to formal submission of the proposal document to the client. It is recommended that this should be conducted by the Bidder’s personnel who have not been involved in the bidding process such that they can act as the prospective client.

The proposal submitted should address all aspects of the stated client requirements as well as any other options and/or opportunities as deemed relevant.

These are some ideas from the article that may be beneficial:

* The sophistication of the Client’s understanding around the proposed work needs to be considered early. The Client’s stated requirements can be impacted by the level of knowledge within its organization. Dependent upon the 'intelligence' of the client it may be necessary to consider their needs, e.g. in a workshop, rather than address the stated requirements alone.
* It is important to remember that understanding client requirements includes identifying opportunities beneficial to the scheme as well as risks. This will ‘add value’ to the content of the proposal.
* For managing quality risks, this article references the new construction industry standard, BS 99001:2022 – Quality management systems – Specification for the application of BS EN ISO 9001:2015 in the built environment sector [2]. It augments the generic ISO 9001 and, in the case of bidding, it sets out formally additional requirements for review when providing products and services, including materials and components.
* Planning the handover to the delivery team is important, even though the award decision may not yet be known, it is necessary to prepare for a positive outcome to the bid, by organizing all the information that would be needed by the construction team, so they are ready to deliver what the bid promised

This article does not consider the financial aspects of bidding.

Reference sources:

[1] “Anti-bribery and ethics - a construction perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Anti-bribery_and_Ethics_-_A_Construction_Perspective|https://www.designingbuildings.co.uk/wiki/Anti-bribery_and_Ethics_-_A_Construction_Perspective]] , October 2021.

[2] BS 99001:2022 – Quality management systems – Specification for the application of BS EN ISO 9001:2015 in the built environment sector.

[3] ISO 44001:2017 – Collaborative business relationship management systems – Requirements and framework.

[4] “Risk assessment: a quality perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Risk_assessment:_a_quality_perspective|https://www.designingbuildings.co.uk/wiki/Risk_assessment:_a_quality_perspective]] , November 2022.

[5] This review is also sought by ISO 9001:2015 – Quality management systems – Requirements.

Original article written by [https://www.linkedin.com/in/kevin-rogers-61448361?miniProfileUrn=urn%3Ali%3Afs_miniProfile%3AACoAAA0P37AB5OJX_ROyowfguowHrPQTvJhlYm4&lipi=urn%3Ali%3Apage%3Asearch_results_generic_index%3Bffffcfd8-0360-443d-95bb-6237cf7c621c Kevin Rogers] & reviewed by [https://www.linkedin.com/in/colin-harley-cqp-fcqi-ieng-miet-70a745a3?miniProfileUrn=urn%3Ali%3Afs_miniProfile%3AACoAABYALboBlRsitS3sogtaRmQnXW4Nq6xGQb8&lipi=urn%3Ali%3Apage%3Ad_flagship3_search_srp_all%3BDb3s1ka9QvGKMz9VVKOiXg%3D%3D Colin Harley] on behalf of the [http://consig.org/ Construction Special Interest (ConSIG) Comptency Working Group (CWG)]. Article peer reviewed by the CWG and accepted for publication by the ConSIG Steering Committee 27/11/2024.

[[Category:Organisations]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Contracts_/_payment]] [[Category:Operations]]

← Older revision		Revision as of 17:01, 28 November 2024
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	There are many types of commercial risks depending on the type of organization and its activities. The following are some of the most common in the construction industry:		There are many types of commercial risks depending on the type of organization and its activities. The following are some of the most common in the construction industry:

−	== a) Fulfilling an ethical policy ==	+	=== a) Fulfilling an ethical policy ===

	The Bidder must establish whether it wants to work with this Client and its associates on this scheme. Depending on factors such as:		The Bidder must establish whether it wants to work with this Client and its associates on this scheme. Depending on factors such as:
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	Further information on anti-bribery management is contained in the following article: “Anti-bribery and ethics - a construction perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Anti-bribery_and_Ethics_-_A_Construction_Perspective\|https://www.designingbuildings.co.uk/wiki/Anti-bribery_and_Ethics_-_A_Construction_Perspective]] , October 2021. [1]		Further information on anti-bribery management is contained in the following article: “Anti-bribery and ethics - a construction perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Anti-bribery_and_Ethics_-_A_Construction_Perspective\|https://www.designingbuildings.co.uk/wiki/Anti-bribery_and_Ethics_-_A_Construction_Perspective]] , October 2021. [1]

−	== b) Resourcing for the scheme: ==	+	=== b) Resourcing for the scheme: ===

	Competency – There is a need to ascertain whether professionals at all levels with the right skills and knowledge are available, or can be recruited, to work in the territory concerned. These are often referred to as Suitably Qualified & Experienced Persons (SQEP). By law, some countries require an Engineer in the design oversight role who is locally registered.		Competency – There is a need to ascertain whether professionals at all levels with the right skills and knowledge are available, or can be recruited, to work in the territory concerned. These are often referred to as Suitably Qualified & Experienced Persons (SQEP). By law, some countries require an Engineer in the design oversight role who is locally registered.
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	Similarly, again notably in the Oil & Gas industry, there are cases of restriction in the supply chain where equipment is provided by the owner of the asset. Besides any possible concerns around corruption, the bidding organization would want to have involvement in the quality assurance of that equipment as it will have an impact on the successful delivery of the scheme.		Similarly, again notably in the Oil & Gas industry, there are cases of restriction in the supply chain where equipment is provided by the owner of the asset. Besides any possible concerns around corruption, the bidding organization would want to have involvement in the quality assurance of that equipment as it will have an impact on the successful delivery of the scheme.

−	== c) Procurement gateways ==	+	=== c) Procurement gateways ===

	The commercial position (pricing) along with the Bidder’s technical capabilities and risk assessments for the scheme are assessed at procurement gateways. These are decision points in the bid where formal reviews are required which culminate in authorization to proceed with the bid being given by management. They are thresholds to be crossed, e.g. before committing resources to develop the bid response further.		The commercial position (pricing) along with the Bidder’s technical capabilities and risk assessments for the scheme are assessed at procurement gateways. These are decision points in the bid where formal reviews are required which culminate in authorization to proceed with the bid being given by management. They are thresholds to be crossed, e.g. before committing resources to develop the bid response further.
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	* Invitation To Tender (ITT).		* Invitation To Tender (ITT).

−	== d) Privacy & information ==	+	=== d) Privacy & information ===

	The bid team must consider whether it will handle personal data (to or from the client). If it will, it must organize to discharge its obligation to protect the data during handling and while retained in its care. It also has a duty to return or securely destroy that information when no longer required. A risk assessment may be used to plan this protection.		The bid team must consider whether it will handle personal data (to or from the client). If it will, it must organize to discharge its obligation to protect the data during handling and while retained in its care. It also has a duty to return or securely destroy that information when no longer required. A risk assessment may be used to plan this protection.
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	The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.		The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.

−	== a) Health & Safety and technical risks: ==	+	=== a) Health & Safety and technical risks: ===

	Health & Safety risks can often be associated with technical risks. Technical risks can include:		Health & Safety risks can often be associated with technical risks. Technical risks can include:
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	* Site safety – including the process for appointment of the Principal Contractor.		* Site safety – including the process for appointment of the Principal Contractor.

−	== b) Quality risks: ==	+	=== b) Quality risks: ===

	In response to the Grenfell Tower fire disaster in London, UK in 2017 the Construction Industry has released a new standard, BS 99001:2022 – Quality management systems – Specification for the application of BS EN ISO 9001:2015 in the built environment sector [2]. It augments the generic ISO 9001 and, in the case of bidding, it sets out formally additional requirements for review when providing products and services, including materials and components. Some additional items it focuses on are:		In response to the Grenfell Tower fire disaster in London, UK in 2017 the Construction Industry has released a new standard, BS 99001:2022 – Quality management systems – Specification for the application of BS EN ISO 9001:2015 in the built environment sector [2]. It augments the generic ISO 9001 and, in the case of bidding, it sets out formally additional requirements for review when providing products and services, including materials and components. Some additional items it focuses on are:
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	Further information on risk assessment can be found in the following article: “Risk assessment: a quality perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Risk_assessment:_a_quality_perspective\|https://www.designingbuildings.co.uk/wiki/Risk_assessment:_a_quality_perspective]] , November 2022. [4]		Further information on risk assessment can be found in the following article: “Risk assessment: a quality perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Risk_assessment:_a_quality_perspective\|https://www.designingbuildings.co.uk/wiki/Risk_assessment:_a_quality_perspective]] , November 2022. [4]

−	== c) Environmental risks, including sustainability and social value opportunities ==	+	=== c) Environmental risks, including sustainability and social value opportunities ===

	An assessment in overview of the most significant aspects and impacts arising for the project is needed at the Pre-contract award stage to guard against surprises later, at the construction stage. This would include:		An assessment in overview of the most significant aspects and impacts arising for the project is needed at the Pre-contract award stage to guard against surprises later, at the construction stage. This would include:
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	Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.		Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.

−	== a) Bid matched to Client’s requirements ==	+	=== a) Bid matched to Client’s requirements ===

	It may seem obvious, but a well-written proposal addresses the Client’s requirements directly and considers their explicit and implied expectations. The Client will after all be assessing the bid on this basis, so it is important to make it easy for them. The proposal should also, where necessary, set out the Bidder’s understanding of certain key points such as risks, for the avoidance of doubt.		It may seem obvious, but a well-written proposal addresses the Client’s requirements directly and considers their explicit and implied expectations. The Client will after all be assessing the bid on this basis, so it is important to make it easy for them. The proposal should also, where necessary, set out the Bidder’s understanding of certain key points such as risks, for the avoidance of doubt.
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	The focus should be on delivering what the Client wants, not what the Bidder wants the Client to want.		The focus should be on delivering what the Client wants, not what the Bidder wants the Client to want.

−	== b) Bid structured to protect and enhance the bidding company’s interests ==	+	=== b) Bid structured to protect and enhance the bidding company’s interests ===

	At this stage, all the actions necessary to mitigate the risks identified in the bid must be understood and considered achievable, both practically and economically.		At this stage, all the actions necessary to mitigate the risks identified in the bid must be understood and considered achievable, both practically and economically.
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	It is good practice to prepare for the likelihood of mobilization should the contract be won.		It is good practice to prepare for the likelihood of mobilization should the contract be won.

−	== a) Plan the handover ==	+	=== a) Plan the handover ===

	At this point, even though the award decision is not known, it is important to prepare for a positive outcome to the bid, by organizing all the information that would be needed by the construction team, so they are ready to deliver what the bid promised as soon as the go ahead for the scheme is received:		At this point, even though the award decision is not known, it is important to prepare for a positive outcome to the bid, by organizing all the information that would be needed by the construction team, so they are ready to deliver what the bid promised as soon as the go ahead for the scheme is received:
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	Many organizations have a Customer Relationship Management (CRM) system on which to track the status of the bid. These can enable reminders to be set at defined intervals, e.g. to act as prompts to follow up on progress with the client.		Many organizations have a Customer Relationship Management (CRM) system on which to track the status of the bid. These can enable reminders to be set at defined intervals, e.g. to act as prompts to follow up on progress with the client.

−	== b) Contract award ==	+	=== b) Contract award ===

	On receipt, the contract itself (the acceptance by the client) needs to be reviewed by the bidding organization to ensure it has a comprehensive understanding of what is required to be delivered. Clarifications may be sought from the client to ensure both parties have a shared understanding.		On receipt, the contract itself (the acceptance by the client) needs to be reviewed by the bidding organization to ensure it has a comprehensive understanding of what is required to be delivered. Clarifications may be sought from the client to ensure both parties have a shared understanding.
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	Further development of the planning, including resource scheduling, can now begin.		Further development of the planning, including resource scheduling, can now begin.

−	== c) Strengths and weaknesses ==	+	=== c) Strengths and weaknesses ===

	When the result of the bid is known (positive or negative) the bidding organization should request feedback from the client in order to learn from the client what attributes of the proposal made it attractive to them, and/or where thy felt it could be improved upon. This knowledge can assist with framing responses to future bid activity with a range of clients.		When the result of the bid is known (positive or negative) the bidding organization should request feedback from the client in order to learn from the client what attributes of the proposal made it attractive to them, and/or where thy felt it could be improved upon. This knowledge can assist with framing responses to future bid activity with a range of clients.

← Older revision		Revision as of 16:59, 28 November 2024
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	Note: These five factors are used as the structure for this article.		Note: These five factors are used as the structure for this article.

−	= 1. Input: The invitation to bid - Understanding the Client’s requirements =	+	= Input: The invitation to bid - Understanding the Client’s requirements =

	There are many ways an invitation to bid can be received, e.g. automatic notifications via electronic portals, notices in industry publications, in writing and even verbally.		There are many ways an invitation to bid can be received, e.g. automatic notifications via electronic portals, notices in industry publications, in writing and even verbally.
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	An invitation is usually time-limited as to when a response is required. This means the bid team needs to get organized promptly. It also introduces an element of stress that needs to be managed if a good proposal is to be submitted on-time.		An invitation is usually time-limited as to when a response is required. This means the bid team needs to get organized promptly. It also introduces an element of stress that needs to be managed if a good proposal is to be submitted on-time.

−	= 2. Identifying and mitigating commercial risks that arise from the bid, including oversight of the supply chain =	+	= Identifying and mitigating commercial risks that arise from the bid, including oversight of the supply chain =

	The response to the Client’s invitation begins with a review of the client’s contractual terms.		The response to the Client’s invitation begins with a review of the client’s contractual terms.
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	The client may require the signing of a confidentiality agreement by a Director on behalf of the bid organization or even by each member of the team. The implications of such a legally based document need to be assessed before signing.		The client may require the signing of a confidentiality agreement by a Director on behalf of the bid organization or even by each member of the team. The implications of such a legally based document need to be assessed before signing.

−	= 3. Identifying major safety, quality, environmental and technical risks to be mitigated for the scheme =	+	= Identifying major safety, quality, environmental and technical risks to be mitigated for the scheme =

	The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.		The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.
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	* Assessing what is required technically for the finished construction to ensure it is resilient to the environmental impacts given the projected levels of climate change, e.g. understanding the construction methods and procurement standards necessary to resist the impact of climate change.		* Assessing what is required technically for the finished construction to ensure it is resilient to the environmental impacts given the projected levels of climate change, e.g. understanding the construction methods and procurement standards necessary to resist the impact of climate change.

−	= 4. Output: Addressing Client requirements in the proposal (offer) with risks and opportunities considered =	+	= Output: Addressing Client requirements in the proposal (offer) with risks and opportunities considered =

	Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.		Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.
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	* Experience gained from previous technical work similar to this scheme.		* Experience gained from previous technical work similar to this scheme.

−	= 5. Activities while awaiting the bid decision and on receipt of that decision =	+	= Activities while awaiting the bid decision and on receipt of that decision =

	It is good practice to prepare for the likelihood of mobilization should the contract be won.		It is good practice to prepare for the likelihood of mobilization should the contract be won.

← Older revision		Revision as of 16:53, 28 November 2024
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	-----		-----
−	Introduction	+	= Introduction =

	This article seeks to explain the process of responding to a tender with a focus on potential risk areas such as commercial, technical, safety, quality and environmental. It concentrates on a tendering or competitive bidding approach. It does not consider the financial aspects of bidding.		This article seeks to explain the process of responding to a tender with a focus on potential risk areas such as commercial, technical, safety, quality and environmental. It concentrates on a tendering or competitive bidding approach. It does not consider the financial aspects of bidding.
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	Table 1 - Five factors that need to be considered by the Bidder at the Pre-contract award stage.		Table 1 - Five factors that need to be considered by the Bidder at the Pre-contract award stage.

−	[[File:~~Five factors pre~~-contract.jpg]]	+	[[File:Five_factors_pre-contract.jpg\|link=File:Five_factors_pre-contract.jpg]]

	Note: These five factors are used as the structure for this article.		Note: These five factors are used as the structure for this article.

−	1. Input: The invitation to bid - Understanding the Client’s requirements	+	== 1. Input: The invitation to bid - Understanding the Client’s requirements ==

	There are many ways an invitation to bid can be received, e.g. automatic notifications via electronic portals, notices in industry publications, in writing and even verbally.		There are many ways an invitation to bid can be received, e.g. automatic notifications via electronic portals, notices in industry publications, in writing and even verbally.
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	An invitation is usually time-limited as to when a response is required. This means the bid team needs to get organized promptly. It also introduces an element of stress that needs to be managed if a good proposal is to be submitted on-time.		An invitation is usually time-limited as to when a response is required. This means the bid team needs to get organized promptly. It also introduces an element of stress that needs to be managed if a good proposal is to be submitted on-time.

−	2. Identifying and mitigating commercial risks that arise from the bid, including oversight of the supply chain	+	== 2. Identifying and mitigating commercial risks that arise from the bid, including oversight of the supply chain ==

	The response to the Client’s invitation begins with a review of the client’s contractual terms.		The response to the Client’s invitation begins with a review of the client’s contractual terms.
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	The client may require the signing of a confidentiality agreement by a Director on behalf of the bid organization or even by each member of the team. The implications of such a legally based document need to be assessed before signing.		The client may require the signing of a confidentiality agreement by a Director on behalf of the bid organization or even by each member of the team. The implications of such a legally based document need to be assessed before signing.

−	3. Identifying major safety, quality, environmental and technical risks to be mitigated for the scheme	+	== 3. Identifying major safety, quality, environmental and technical risks to be mitigated for the scheme ==

	The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.		The Bidder will want to include evidence in the proposal of the awards it has received, such as for health & safety and environment, but it is also necessary to look more closely at the risks presented in these areas for the specific job being bid.
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	* Assessing what is required technically for the finished construction to ensure it is resilient to the environmental impacts given the projected levels of climate change, e.g. understanding the construction methods and procurement standards necessary to resist the impact of climate change.		* Assessing what is required technically for the finished construction to ensure it is resilient to the environmental impacts given the projected levels of climate change, e.g. understanding the construction methods and procurement standards necessary to resist the impact of climate change.

−	4. Output: Addressing Client requirements in the proposal (offer) with risks and opportunities considered	+	== 4. Output: Addressing Client requirements in the proposal (offer) with risks and opportunities considered ==

	Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.		Once the work has been priced, the aim is to submit an offer that is beneficial to both the Client’s and Bidder’s organizations, financially, technically and with risks known. The bid needs to offer added value to the Client for the investment in the asset it is making and a profitable return for the Bidder for successful delivery.
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	* Experience gained from previous technical work similar to this scheme.		* Experience gained from previous technical work similar to this scheme.

−	5. Activities while awaiting the bid decision and on receipt of that decision	+	== 5. Activities while awaiting the bid decision and on receipt of that decision ==

	It is good practice to prepare for the likelihood of mobilization should the contract be won.		It is good practice to prepare for the likelihood of mobilization should the contract be won.
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	When the result of the bid is known (positive or negative) the bidding organization should request feedback from the client in order to learn from the client what attributes of the proposal made it attractive to them, and/or where thy felt it could be improved upon. This knowledge can assist with framing responses to future bid activity with a range of clients.		When the result of the bid is known (positive or negative) the bidding organization should request feedback from the client in order to learn from the client what attributes of the proposal made it attractive to them, and/or where thy felt it could be improved upon. This knowledge can assist with framing responses to future bid activity with a range of clients.

−	Summary	+	== Summary ==

	Pre-contract award is the initial tender stage for a construction scheme that must be managed effectively for the Bidder to be successful in winning the work itself. Done well, the Pre-contract award stage mitigates risk areas such as commercial, technical, safety, quality and environmental and identifies value for both client and bidder, and in more than just financial terms.		Pre-contract award is the initial tender stage for a construction scheme that must be managed effectively for the Bidder to be successful in winning the work itself. Done well, the Pre-contract award stage mitigates risk areas such as commercial, technical, safety, quality and environmental and identifies value for both client and bidder, and in more than just financial terms.
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	This article does not consider the financial aspects of bidding.		This article does not consider the financial aspects of bidding.

−	Reference sources:	+	== Reference sources: ==

	[1] “Anti-bribery and ethics - a construction perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Anti-bribery_and_Ethics_-_A_Construction_Perspective\|https://www.designingbuildings.co.uk/wiki/Anti-bribery_and_Ethics_-_A_Construction_Perspective]] , October 2021.		[1] “Anti-bribery and ethics - a construction perspective“, Chartered Quality Institute, Construction Special Interest Group, [[Anti-bribery_and_Ethics_-_A_Construction_Perspective\|https://www.designingbuildings.co.uk/wiki/Anti-bribery_and_Ethics_-_A_Construction_Perspective]] , October 2021.