For many organisations, tendering is the very foundation of their operations and revenue stream.
For this reason, it is important that organisations involved in tendering have an understanding of the necessary steps they need to be taking in assessing tender opportunities and preparing their tender documents.
Miscalculations in tenders or contract evaluations can have a lasting impact - often for many years during the life of a contract.
Directors must ensure that adequate processes and systems are in place to ensure that a balance is achieved between winning new business and capitalising on new opportunities and not inadvertently committing an organisation to unduly onerous provisions or accepting an inordinately high level of risk.
Some of the key steps that organisations must follow when involved in a tendering process are highlighted.
The fundamentals of the tendering process are examined as well as a number of different and significant contract clauses and issues that recur in tendering documentation. For example, liquidated damages, assignment and change of control clauses, force majeure, indemnities and dispute resolution issues.