Tenders can be invited in competition from a list of suitable contractors, with subsequent examination and recommendation on selection, or, alternatively, an offer price can be negotiated with one or more chosen contractors.
For reasons of transparency some clients may not be permitted to negotiate tenders directly with a preferred bidder. There is also a general belief that "best value" is achieved by competitive tendering.
Negotiation can follow a competitive tendering exercise but if this is seen as 'the norm" or common practice then there is a risk that contractors will not submit their best price on the basis that it will in any case be negotiated down. Negotiation of follow-on contracts is common practice and can save time and expense; the negotiation usually being on the basis of applying the previously tendered rates to the new contract, possibly subject to an inflationary uplift if there is some time between the original tender and the follow-on contract.
If tenders are to be negotiated then it is best to start with an element of trust between the parties and for there to be a degree of confidence in our skills and knowledge of current building rates and prices. We keep up to date with building costs by constantly analysing tender results and rates and can respond very quickly and effectively.
Featured Projects
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Employers AgentAmesbury – School Extension
Our client for this project was a consortium consisting of a major house builder and local authority. The house builder agreed to finance an eight classroom extension to a local school as part of a ‘planning gain’ agreement. Planning consent had already been obtained so we suggested tendering on the basis of a design and build contract. -
Employers AgentWindsor – eleven superior apartments
Our client acquired this site with the benefit of planning consent and a contractor who had started preliminary works. We suggested negotiating with the contractor on the basis of a design and build contract. -
Employers AgentWantage – Mixed Use Development
Our client for this project owns the nearby shopping precinct and had looked at various options to develop the vacant site. Financial viability and local authority pressure eventually culminated in planning consent for a mixed use, shop, office and residential scheme. -
Employers AgentSlough – nine house residential development
Our client acquired this site with the benefit of planning consent and wanted to build out the scheme as quickly as possible. We suggested tendering on the basis of a design and build contract. -
Employers AgentKingsclere – Tyre Depot
Our client owned and operated their business from this site, part of which was sold for residential development. To free up the residential site the redevelopment scheme including building a new depot in a corner of the site. We suggested tendering on the basis of a design and build contract.