Tender negotiations
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. Generally, tendering refers to the construction works rather than securing consultancy services which are referred to as 'appointing'.
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.
Once tenders have been received, tender negotiations might proceed with two preferred tenderers prior to selection of the successful bid. They are an opportunity to agree or clarify any matters regarding the pricing and quality of the proposed works, conditions of contract and programme. This is the last chance the client and consultant team will have to negotiate with tenderers while they are still subject to the pressures of competition.
Tender negotiations may involve:
- Tender qualifications to the proposed contract conditions.
- Anomalies or clarification in the tender pricing document.
- Alternative offers to the design or specification.
- Resolution of provisional sums.
The record of the agreements reached needs to be carefully drafted and signed off by both parties as it will form part of the contract documents.
Generally, the contract administrator co-ordinates negotiations with the tenderers, but negotiations may be led at different stages by the cost consultant, contract administrator, lead designer or architect, or by a client representative such as a project manager.
[edit] More information
For a detailed description of the tender process for appointing the main contractor see the free work plan stages:
- Traditional contract: tender.
- Design and build: tender.
- Public project: tender.
- Public project: PFI tender.
- Construction management: tender.
- Management contract: tender.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
ECA Industry Awards 2024 shortlist revealed
22 leading businesses from across the electrotechnical and engineering services sector.
Government unveils Skills England strategy
Skills England to transform opportunities and drive growth.
New Government Hub for York Given Planning Green Light
For up to 2,600 civil servants, due for completion by 2028.
Construction Skills Certification Scheme cards
July update on Professionally Qualified and Academically Qualified Person Cards.
BSRIA Briefing 2024, November 22
Sustainable Futures: Redefining Retrofit for Net Zero Living.
The CLC on driving competency in the retrofit sector
Previously published roadmap on skills for net zero.
The first labour government King's speech in fifteen years
Construction industry reactions, support and some concern.
CIOB Retrofit of Buildings Technical Information Sheet
What retrofit is, the approach to be taken and processes to be followed.
Adapting Historic Buildings for Energy and Carbon Efficiency
Historic England advice note 18, free download published.
10 retrofit projects revisited 10 years after completion.
Information orders, building liability orders and SPVs
Key BSA terms and how they impact special purpose vehicles.
Listed despite problems with its design.
Zen and the art of cycling exploration.
Design Council Homes Taskforce launched
To support government 1.5 million homes target within UK climate commitments.