Moving From Tendering to Early Market Engagement & Procurement Pipeline Strategy

Moving From Tendering to Early Market Engagement & Procurement Pipeline Strategy

In this article we consider why innovative suppliers are lost when councils go to market too late – and how WA councils can safely do strategic, pre-tender engagement.

For many Western Australian councils, procurement still begins when a specification is finalised and an invitation to tender is released. By that point, the most innovative suppliers – those with creative solutions, new technologies, or unique delivery models – have already moved on to other opportunities. The result is predictable: tenders that attract conventional bids, limited differentiation, and a “lowest-price wins” outcome. Not because the market lacked innovation – but because the process started too late to invite it.

The Missed Opportunity: Procurement as a Market-Shaping Tool

Strategic procurement reframes the question. Instead of “How do we run a compliant tender?”, leading councils ask:
“How can we use procurement to shape the market, build capability, and achieve better community outcomes?”

Early market engagement and procurement pipeline planning are the key. They allow councils to inform, test and shape the market before locking in scope and price expectations. This doesn’t breach probity – when done properly, it actually strengthens it.

Why Councils Lose Innovation When They Go to Market Too Late

1.  The scope is already frozen – once specifications are finalised, suppliers can’t offer alternative approaches or technologies.
2. Innovators need lead time – emerging or regional suppliers may need months to prepare capacity or partnerships.
3. Procurement becomes transactional – the focus shifts to compliance and risk avoidance.
4. The best suppliers disengage – they prioritise clients who engage early and show strategic intent.

How Councils Can Safely Engage Early — Within the WA Legal Framework

Under the Local Government Act 1995 and Local Government (Functions and General) Regulations 1996, nothing prevents councils from engaging the market early – provided it’s done transparently, fairly and without preferential treatment.

• Publish a forward procurement pipeline – share indicative project pipelines to give industry visibility and confidence.
• Hold pre-tender briefings or supplier information sessions – explore technologies and delivery models without commitment.
• Use Request for Information (RFI) or market sounding – gather intelligence to inform procurement design.
• Document and manage probity – keep consistent records and messaging.
• Align internal governance – ensure early engagement is part of strategic planning, not an afterthought.

The Strategic Payoff

Councils that plan and engage early gain tangible advantages:

1. Better competition and innovation – more suppliers can participate.
2. Better value – informed scoping reduces risk premiums and pricing uncertainty.
3. Better governance – decisions are evidence-based.
4. Better community outcomes – solutions are aligned to real needs.

The Bottom Line

The most innovative suppliers aren’t waiting at the end of the process – they’re shaping opportunities at the start. Councils that move from reactive tendering to proactive, transparent engagement will attract innovation and strengthen compliance, reputation and public value.

In Western Australia, the legislative framework already allows this – councils simply need to use it strategically.

How Muscat Tanzer Can Help

At Muscat Tanzer, we help councils move beyond reactive tendering to implement proactive, strategic procurement approaches. Our team advises on legally sound early market engagement, the development of forward-looking procurement pipelines, and governance frameworks that drive value for money, transparency, and community outcomes – while ensuring compliance with the Local Government Act and regulations.