Invitation to tender

Having produced the requirements and the evaluation plan, it is now possible to issue the invitation to tender to prospective suppliers. Essentially, this will be the requirement document with a supporting letter, which may have additional information about how responses to the invitation are to be lodged. A deadline w ill be specified and it is hoped that by then a number of proposals with price quotations w ill have been received.

In English law. for a contract to exist there must be an offer on one side that must be accepted by the other side. The invitation to tender is not an offer itself but an invitation for prospective suppliers to make an offer.

Certain new problems now emerge. The requirements that have been laid down might be capable of being satisfied in a number of different ways. The customer needs to know not only a potential supplier's price but also the way in which they intend to satisfy the requirements - this will be particularly important where the contract is to build a new system from scratch.

In some relatively straight-forward cases, it would be enough to have some post-tender clarification and negotiation to resolve issues in the supplier's proposal. With more complex projects a more elaborate approach may be needed. One way of getting the detail of the suppliers' proposals elaborated is to have a two stage tendering process.

In the first stage, technical proposals are requested from potential suppliers who This approach is do not necessarily quote any prices at this stage. Some of these proposals can be recommended by the dismissed out of hand as not being able to meet the mandatory requirements. With CCTA in the United the remaining ones, discussions may be held w ith representatives of the suppliers Kingdom, in order to clarify and validate the technical proposals. The suppliers may be asked to demonstrate certain aspects of their proposals. Where short-comings in the proposal are detected, the supplier may be given the opportunity to remedy these.

The result of these discussions could be a Memorandum of Agreement (MoA) w ith each prospective supplier. This is an acceptance by the customer that the proposed solution (which might have been modified during discussions) offered by the supplier satisfactorily meets the customer's requirement.

In the second stage, tenders are inv ited from all the suppliers who have signed individual Memoranda of Agreement. The tender would incorporate the MoA and would be concerned with the financial terms of a potential contract.

If a design has to be produced as part of the proposal made by a supplier in response to an inv itation to tender, then a difficulty would be that the supplier would have to do a considerable amount of detailed design work with only a limited prospect of being paid for it. One way of reducing this burden is for the customer to choose a small number of likely candidates who will be paid a fee to produce design proposals. These can then be compared and the final contract for construction awarded to the most attractive proposal.

The ISO 12207 has a rather different approach. Once a contract for software construction is signed, the supplier develops a design, which then has to be agreed by the customer.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook

Post a comment