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Negotiated tendering

A negotiated tender is effectively a single-stage tender carried out between the client and just one contractor. Thus negotiated tenders are obtained by the client, inviting one contractor of their choice to submit a tender response for the project. This is then negotiated with the client’s professional team (usually the client’s cost consultant).

Documents produced are appropriate to the chosen procurement route.

The benefit of this route is the speed with which a price can be obtained for the proposed works. However, the competitive advantage of a formal bidding process is reduced and the client could end up paying more for a quicker start on site, albeit with a contractor of their choice. Also, many public bodies and government departments will not allow negotiated tenders except in exceptional circumstances, as it is difficult to prove that value for money has been achieved or that favouritism has been avoided.

A negotiated tender has a good chance of being accepted as satisfactory by the client because selection is based on previous successful working arrangements between the client and the chosen contractor.

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This article is from the free online course:

Procurement Strategies and Tendering

Coventry University