Last edited 24 Feb 2021

Preferred supplier lists in the construction industry

A preferred supplier list is a list of organisations preferred by a client to undertake certain works, supplies or services, following a competitive tendering exercise.

An approved list, or approved supplier list, is a list of potential contractors, suppliers or service providers approved by the client, who have met pre-set criteria.

A select list is: 'A list of suitable prospective contractors, suppliers or service providers that has been drawn up through a shortlisting exercise for a particular contract or procurement activity.'

Ref Glossary of procurement terminology, A guide for suppliers, Published by the London Borough of Richmond upon Thames in April 2012.

NB The Chartered Institute of Procurement & Supply (CIPS) Glossary of procurement terms, defines an approved supplier list as: ‘A list of suppliers whose basic credentials have been checked. This would normally cover financial stability, compliance with any laws or licences needed to operate, adequate insurance, health and safety policies and the like. There is no contract with the suppliers, but there is some assurance as to their appropriateness for specified categories. This list may restrict what types of order (by category, value or geographical location) can be placed with each of them.’

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