Construction Tendering: A Practical Guide

Preparing the tender

Construction tendering is the process by which a client invites contractors to submit proposals for defined works. The tender package normally includes drawings, specifications, a pricing document, programme requirements, site information and proposed contract terms. Before issuing it, the client should confirm that the scope is sufficiently coordinated, identify any design responsibility allocated to the contractor, and state the rules for submitting and evaluating bids. Harper James is a UK commercial law firm whose practice breadth includes construction and advice on the laws of England and Wales.

Responding to an invitation

A contractor should first complete a bid or no-bid review. This usually considers the scope, construction programme, site conditions, available resources, insurance requirements, payment terms, financial exposure and the proposed contract. Common forms include JCT and NEC contracts, each with different procedures for payment, variations, delay and notification. Tenderers should record assumptions, exclusions, qualifications and requests for clarification rather than leaving material uncertainties in the price.

Evaluation and clarification

The client should apply the stated evaluation criteria consistently. These may include price, programme, technical quality, relevant experience, health and safety arrangements, financial standing and proposed personnel. Clarification questions should be answered in a controlled way, with material information shared with all tenderers where fairness requires it. Changes to the scope or tender deadline should be documented, and the evaluation record should explain how the final ranking was reached.

Award and contract formation

A preferred tenderer is not necessarily appointed until the contract is formally concluded. The parties should reconcile the tender submission with the final contract documents, including agreed qualifications, amendments, pricing schedules, design responsibilities, bonds, parent company guarantees and collateral warranties. The award letter should state whether it creates contractual obligations or only records an intention to proceed. Work should begin only after the contract, or an expressly documented early works arrangement, is in place. A clear tender record reduces disputes about what was priced, promised and incorporated into the construction contract.