Variant bids in the construction industry - Revision history

Designing Buildings at 07:43, 16 June 2021

2021-06-16T07:43:42Z

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	However, clients may want to allow variant bids on the basis that it may result in better value for money, innovation and a better design outcome that draws upon the expertise and experience of the bidders. They might also be concerned that bidders who may otherwise successfully meet the specified outcomes could be deterred from tendering if they are unable to submit certain, perhaps minor, variations.		However, clients may want to allow variant bids on the basis that it may result in better value for money, innovation and a better design outcome that draws upon the expertise and experience of the bidders. They might also be concerned that bidders who may otherwise successfully meet the specified outcomes could be deterred from tendering if they are unable to submit certain, perhaps minor, variations.
		+
		+	NB [https://www.cips.org/knowledge/glossary-of-terms/ The Chartered Institute of Procurement & Supply (CIPS) Glossary of procurement terms], defines a variant bid as: ‘A tender offer that does not quite match the specification of contract terms, but has been authorised as a secondary offer from a supplier. It is used to see if the proposed specification and contract terms can be improved upon via competitive offers and must be authorised by the purchaser as part of the invitation to tender.’

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 09:08, 7 December 2020

2020-12-07T09:08:34Z

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	* Variations.		* Variations.

−	[[Category:Appointments]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Appointments]] [[Category:Procurement]]

Designing Buildings: moved Variant bid to Variant bids in the construction industry

2019-07-26T11:20:46Z

moved Variant bid to Variant bids in the construction industry

← Older revision

Revision as of 11:20, 26 July 2019

Designing Buildings at 11:20, 26 July 2019

2019-07-26T11:20:25Z

← Older revision		Revision as of 11:20, 26 July 2019
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	However, clients may want to allow variant bids on the basis that it may result in better value for money, innovation and a better design outcome that draws upon the expertise and experience of the bidders. They might also be concerned that bidders who may otherwise successfully meet the specified outcomes could be deterred from tendering if they are unable to submit certain, perhaps minor, variations.		However, clients may want to allow variant bids on the basis that it may result in better value for money, innovation and a better design outcome that draws upon the expertise and experience of the bidders. They might also be concerned that bidders who may otherwise successfully meet the specified outcomes could be deterred from tendering if they are unable to submit certain, perhaps minor, variations.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Best value.		* Best value.

Editor at 14:25, 13 August 2018

2018-08-13T14:25:38Z

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	* Best value.		* Best value.
		+	* Common mistakes in construction tenders.
	* Competitive tender.		* Competitive tender.
	* Form of tender.		* Form of tender.

Designing Buildings at 06:44, 5 August 2018

2018-08-05T06:44:31Z

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		+	A tender is a submission made by a prospective supplier in response to an invitation to tender. It makes an offer for the supply of goods or services. An invitation to tender might be issued for a range of contracts, including; equipment supply, the main construction contract (perhaps including design by the contractor), demolition, enabling works, etc.
		+
	In response to an invitation to tender, invited tenderers will submit their tender, which will include their price for supplying the goods or services along with proposals for how the client's requirements will be satisfied if these have been requested.		In response to an invitation to tender, invited tenderers will submit their tender, which will include their price for supplying the goods or services along with proposals for how the client's requirements will be satisfied if these have been requested.

−	A variant bid, sometimes referred to as an alternative or non-compliant proposal, may be submitted if the tenderer believes that what ~~they are proposing offers~~ better value for money and/or is a more innovative solution. ~~This will depart from the methodology or requirements laid out in the specification. However, non~~-compliant proposals should only be submitted if they have been requested or permitted and should be accompanied by a compliant proposal. By submitting a compliant bid alongside a variant bid, the ~~contracting authority~~ is able to consider them both together.	+	A variant bid, sometimes referred to as an alternative or non-compliant proposal, may be submitted if the tenderer believes that an alternative to what has been requested by the client could offer better value for money and/or is a more innovative solution. Non-compliant proposals should only be submitted if they have been requested or are explicitly permitted by the client, and they should be accompanied by a compliant proposal. By submitting a compliant bid alongside a variant bid, the client is able to consider them both together and so properly assess the value for money offered by the variant bid.

−	A public sector contract notice ~~that is~~ published under the OJEU regulations must contain a clause indicating whether or not variant bids will be accepted. It can be more difficult to tell whether or not a variant bid will be accepted on a private sector tender. If it is not specified one way or the other in the contract notice, there may be guidance in the appropriate tender documents (i.e. in the instructions to tenderers or specification). Otherwise, the only way to ascertain whether it will be permitted may be to contact the ~~contracting authority/buyer~~ directly for clarification.	+	On public sector projects, a contract notice published under the OJEU regulations must contain a clause indicating whether or not variant bids will be accepted. It can be more difficult to tell whether or not a variant bid will be accepted on a private sector tender. If it is not specified one way or the other in the contract notice, there may be guidance in the appropriate tender documents (i.e. in the instructions to tenderers or specification). Otherwise, the only way to ascertain whether it will be permitted may be to contact the client directly for clarification.

−	~~A tenderer~~ should clearly state ~~in the submission that~~ they are returning a variant bid and, if appropriate, provide clarity on which specification items ~~have been~~ deviated from~~. The variant bid should still inform the buyer on~~ how the outcomes will be ~~met, but should refer to and accommodate any variations throughout the bid (i.e. not isolate the variations but incorporate them)~~. The tenderer ~~should attempt to~~ persuade the buyer that the alternative proposal/s does not increase the level of risk and convince them of the potential benefits. The tenderer must be prepared to provide further details and answer questions regarding the variations which are likely to follow the submission.	+	Tenderer submissions should clearly state if they are returning a variant bid and, if appropriate, provide clarity on which specification items the variant has deviated from, as well as how the required outcomes will be achieved. The tenderer must persuade the buyer that the alternative proposal does not increase the level of risk and convince them of the potential benefits. The tenderer must be prepared to provide further details if necessary and to answer questions regarding the variations which are likely to follow the submission.

−	A variant bid may not be allowed if the contracting authority ~~deems that~~ it would make the tendering exercise less equitable and fair~~. This~~ could leave them open to challenge from ~~a bidder that is~~ unsuccessful if they were to award the contract to the variant bid~~, and this could risk delay in the project starting~~. It might also not be allowed due to the extra time and effort required to assess the bid alongside the others that may be compliant with the specifications. Since set outputs are usually established to enable fair comparison of submitted tenders, a variant bid may result in different outputs, as well as different prices, rates, and so on. Therefore, ~~an authority~~ may, for the sake of ease and reduced risk, decide that all tenderers must submit compliant bids.	+	A variant bid may not be allowed if the contracting authority believes it would make the tendering exercise less equitable and fair as it could leave them open to challenge from an unsuccessful tenderer if they were to award the contract to the variant bid. It might also not be allowed due to the extra time and effort required to assess the bid alongside the others that may be compliant with the specifications. Since set outputs are usually established to enable fair comparison of submitted tenders, a variant bid may result in different outputs, as well as different prices, rates, and so on. Therefore, the client may, for the sake of ease and reduced risk, decide that all tenderers must submit compliant bids.

−	However, ~~buyers~~ may want to allow variant bids on the basis that it may result in ~~increased~~ value for money, innovation and ~~flexible~~ design that draws upon the expertise and experience of the bidders. They might also be concerned that bidders who may otherwise successfully meet the specified outcomes could be deterred from tendering if they are unable to submit certain, perhaps minor, variations.	+	However, clients may want to allow variant bids on the basis that it may result in better value for money, innovation and a better design outcome that draws upon the expertise and experience of the bidders. They might also be concerned that bidders who may otherwise successfully meet the specified outcomes could be deterred from tendering if they are unable to submit certain, perhaps minor, variations.

	= Find out more =		= Find out more =

Editor at 16:22, 3 August 2018

2018-08-03T16:22:25Z

← Older revision		Revision as of 16:22, 3 August 2018
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	* Tender evaluation.		* Tender evaluation.
	* Tender processes.		* Tender processes.
−	* Typical tender process.	+	* Typical tender process for construction projects.
	* Variations.		* Variations.

	[[Category:Appointments]] [[Category:Procurement]]		[[Category:Appointments]] [[Category:Procurement]]

Editor: Created page with "In response to an invitation to tender, invited tenderers will submit their tender, which will include their price for supplying the goods or services along with proposals for ho..."

2018-08-03T16:22:02Z

Created page with "In response to an invitation to tender, invited tenderers will submit their tender, which will include their price for supplying the goods or services along with proposals for ho..."

New page

In response to an invitation to tender, invited tenderers will submit their tender, which will include their price for supplying the goods or services along with proposals for how the client's requirements will be satisfied if these have been requested.

A variant bid, sometimes referred to as an alternative or non-compliant proposal, may be submitted if the tenderer believes that what they are proposing offers better value for money and/or is a more innovative solution. This will depart from the methodology or requirements laid out in the specification. However, non-compliant proposals should only be submitted if they have been requested or permitted and should be accompanied by a compliant proposal. By submitting a compliant bid alongside a variant bid, the contracting authority is able to consider them both together.

A public sector contract notice that is published under the OJEU regulations must contain a clause indicating whether or not variant bids will be accepted. It can be more difficult to tell whether or not a variant bid will be accepted on a private sector tender. If it is not specified one way or the other in the contract notice, there may be guidance in the appropriate tender documents (i.e. in the instructions to tenderers or specification). Otherwise, the only way to ascertain whether it will be permitted may be to contact the contracting authority/buyer directly for clarification.

A tenderer should clearly state in the submission that they are returning a variant bid and, if appropriate, provide clarity on which specification items have been deviated from. The variant bid should still inform the buyer on how the outcomes will be met, but should refer to and accommodate any variations throughout the bid (i.e. not isolate the variations but incorporate them). The tenderer should attempt to persuade the buyer that the alternative proposal/s does not increase the level of risk and convince them of the potential benefits. The tenderer must be prepared to provide further details and answer questions regarding the variations which are likely to follow the submission.

A variant bid may not be allowed if the contracting authority deems that it would make the tendering exercise less equitable and fair. This could leave them open to challenge from a bidder that is unsuccessful if they were to award the contract to the variant bid, and this could risk delay in the project starting. It might also not be allowed due to the extra time and effort required to assess the bid alongside the others that may be compliant with the specifications. Since set outputs are usually established to enable fair comparison of submitted tenders, a variant bid may result in different outputs, as well as different prices, rates, and so on. Therefore, an authority may, for the sake of ease and reduced risk, decide that all tenderers must submit compliant bids.

However, buyers may want to allow variant bids on the basis that it may result in increased value for money, innovation and flexible design that draws upon the expertise and experience of the bidders. They might also be concerned that bidders who may otherwise successfully meet the specified outcomes could be deterred from tendering if they are unable to submit certain, perhaps minor, variations.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Best value.
* Competitive tender.
* Form of tender.
* Invitation to tender.
* OJEU procurement rules.
* Tender evaluation.
* Tender processes.
* Typical tender process.
* Variations.

[[Category:Appointments]] [[Category:Procurement]]