Negotiating the tendering process
While there are many types of tendering process, the principles remain the same. It’s about being accountable and auditable and getting the price right.
Completing a tender document can be a major undertaking and, while it’s vital to ensure it’s competitive, it’s even more important to get it watertight.
It can be tempting to focus mainly on price in order to win the contract, but everything needs to be accounted for. Starting with a clear strategy, it involves planning how the work will be undertaken, evaluating and managing the risks, ensuring compliance with all regulations and demonstrating that all costs are properly accounted for.
Types of tender process
In an open or competitive tendering process, anyone can express an interest, usually through a pre-qualification questionnaire. Tenders which exceed certain cost thresholds are usually subject to OJEU (Official Journal of the European Union) rules.
A selective tendering process generally involves a shortlist of suitable contractors being drawn up by the project team. In some cases, a single contractor may be chosen and then the negotiation process begins to agree the price and schedule of work.
Tender processes may be single-stage or two-stage, the latter can speed up the process where time constraints are involved as it allows design and tendering to overlap and enables the contractor to input into the design process.
Expressions of interest
If you are expressing an interest through an open tendering process, you will be required to review and evaluate large amounts of information very quickly and provide supporting evidence and detailed explanation.
At ProQS, we can help you with this process, ensuring your tender is compliant and clearly explains your pricing and construction methodology.
Your tender document should account for potential hurdles in a project, including how delays, penalties and unforeseen changes should be handled. ProQS has seen changes being made on scraps of paper instead of on contracts when unexpected challenges arise during projects.
Our team therefore approaches tendering with a robust checklist to ensure agreements are fair, straightforward and all-encompassing, evenly dividing the risks between the parties.
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Defining the risks
We negotiate fair terms and conditions on behalf of contractors so they can realistically meet expectations. This includes reasonable insurance indemnity limits and reasonable, pre-determined penalties for missed completion dates which are proportional to the value of work.
Getting the price right
Getting a clear picture of a project’s costs can be difficult, and if underestimated, can end up losing you money.
As a RICS regulated firm, ProQS uses the Building Cost Information Services (BCIS) database – the leading source for independent building costings information. This allows us to accurately tell how much should be proposed in a tender to cover your costs.
ProQS used this database when Suffolk-based building company John O’Connell Ltd approached us to help them to tender with a 24-hour deadline, supporting them to win a high-end project and enter a new market.
Setting a detailed schedule
Negotiating an in-depth schedule gives our clients the peace of mind that they will only be held to account for what they can control. All projects are moving pictures and tenders must account for this.
We provide a responsible, flexible and effective service to help give you a competitive edge while ensuring compliance and negotiating workable terms and conditions for you.