Tender Process Risks and Strategies to Mitigate
The below article on Tender Process Risks and Strategies to Mitigate is the third article in our five-part Probity, Procurement and Tendering Article Series. This article will be followed by articles on Probity Plans, and lastly Contract Negotiations. This article explores strategies for minimising risks in the tender process, for both procurers and tenderers.
For procurers, we discuss key strategies for risks associated with:
- process contracts, including express contracts and non-binding processes;
- RFTs, including various waivers and conditions of the tender that should be included;
- documentation, including important that verification and signoff procedures;
- disclaimer: including the requirement of tenderers to fully inform themselves of all matters relating to the tendered project and an acknowledgement that they will not rely on any information provided by the procurer; and
- training.
For tenderers, we discuss key strategies for risks associated with:
- conforming and non-conforming tenders;
- tender qualifications; and departures.
We also discuss “Closing the deal” and the risks associated with:
- a delay in finalising the tender process and a contract being concluded; and
- “awarding” the contract, including when a binding and enforceable contract actually comes into being, and incorporating tender documents into the final contract.
