Invitation to tender for construction contracts

Revision as of 07:07, 12 November 2011

An invitation to tender is a formal invitation to make an offer for the supply of goods or services. An invitation to tender might be issued for a range of contracts, including:

• Equipment supply.
• Design by contractors.
• Trade contractors.
• Works contractors.
• Main construction contract.
• Demolition or enabling works.

The issue of an invitation to tender may follow an assessment of pre-qualification questionnaires (PQQ's) received by the client in response to an advert that they have posted and perhaps a pre-tender interview. The purpose of pre-qualification questionnaires and pre-tender interviews is to enable the client to produce a short list of suppliers that are likely to be most appropriate for their particular project who will then be invited to tender. This avoids time being wasted preparing and assessing inappropriate tenders.

An invitation to tender will include information describing the goods or services required in sufficient detail to enable the tenderer prepare an accurate tender that is in a prescribed format so that it is easy to compare with other tenders.

An invitation to tender might include:

• Letter of invitation to tender.
• Form of tender.
• Preliminaries (including pre-construction information and site waste management plan).
• Form of contract, contract conditions and amendments.
• Tender pricing document (or form of contract sum analysis on design and build projects)
• Drawing schedule.
• Design drawings.
• Prescriptive or performance specifications (on public projects, tender documentation may include an output-based specification rather than prescriptive or performance specifications and drawings).
• Instructions to tenderers explaining the tender process.
• The timescale for the tender process (including the address and time for the return of tenders).
• An explanation of how queries will be dealt with.
• The evaluation process and any evaluation criteria.
• The submission required in response to the invitation to tender.
• Policy in relation to alternative or non-compliant bids.
• Policy for providing feedback to unsuccessful tenderers.

In response to an invitation to tender, invited tenders will submit their tender, which will include their price for supplying the goods or services along with proposals for how the clients requirements will be satisfied.

Publicly projects or publicly-subsidised projects may be subject to OJEU procurement procedures, enacted in the UK by The Public Contracts Regulations. The regulations set out rules requiring that contracts must be advertised in the Official Journal of the EU (OJEU) (The requirements for OJEU Contract Notices can be found at simap). This is of particular importance to construction because the time taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for the selection of contractors.

See also

• OJEU procurement rules.
• Pre-tender interviews.
• Mid-tender interviews.
• Pre-qualification questionnaire.
• Tender.
• Tender documentation.
• OJEU procedures.
• OGC provides a range of standard documents for obtaining and processing tenders on public projects.
• A description of the contents of an invitation to tender for public projects can be found in PACE Guidance on the Appointment of Consultants and Contracotrs P486 and 487.
• OGC guide to EU procurement rules.