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
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Passive fire protection webinar
MEP services penetration seals.
Where its at podcast (and video) - The role of the Architectural Technologist as an Expert Witness.
More than 200 remarkable buildings added to SAVE’s Buildings at Risk register.
Government scraps pre-application consultation for Nationally Significant Infrastructure Projects.
Historic England and infrastructure
New projects offer opportunities for the historic environment and local communities.
Construction Management, 2 July
Construction deaths halve in two years.
Green Book changes to drive investment in all parts of UK.
Minimum energy efficiency standards (MEES)
CIAT briefing on response to consultations for privately rented non-domestic properties.
Connect, collaborate, shape the future
Registration now live for UK Construction Week Birmingham.
CIOB announces Saul Humphrey FCIOB as new President for 26/27 term.
A quick, simple, and zero-bills solution to prevent overheating.
The adaptive reuse of large industrial structures.
Promoting the circular economy by extending the life of buildings.

















