Contract Negotiation & Tender Preparation
Situation
An existing client who provides building services to a multinational mining company were given the opportunity to tender on a large long term housing upgrade program with a budget estimate exceeding $AUD12M.
Due to the value of this project the principal had prepared very detailed and extensive tender documentation.
Our client, while very capable in executing building works, were concerned as to the details, requirements and obligations they would have to commit to under the terms and conditions of contract over a long term and therefore sort our assistance in preparing their tender proposal.
Task
INTEGRATED IMPROVEMENT was engaged to study the tender documentation and assist our client to establish their capacity to execute works in accordance with the stipulated terms and conditions.
Action
INTEGRATED
IMPROVEMENT undertook this project by:
- Examining the documentation and broke it down into categories that could be revised in manageable parts.
- Highlighting for discussion with our client any concerns or questions that needed further consideration.
- Presenting the principal with a list of items requiring clarification.
- Conducting a gap analysis of our client’s capacity in the areas of technical, financial and administrative contractual requirements.
- Establishing clear “break points” for our client to negotiate from.
After establishing our client’s position we were then asked to represent our client at a pre-award meeting with the Principal's Contract Representatives.
Result
Amendments were accepted by the Principal to enable a mutually beneficial outcome. Our client was able to secure a long term contract for housing upgrades that has enabled them to offer attractive rates to secure quality staff and provide opportunity to upgrade plant and equipment.
The award of this contract has put them in an advantageous position for other similar works both for their existing client and promotes them as operators in broader market sectors.