Procurement Procedures Explained: Negotiated Tendering

15th June 2022

Get to grips with negotiated tendering

As you tender for work, have you ever come across the negotiated tendering procedure? Do you know what it means and how it could work for your business? If not, then don’t worry – by the end of this blog, you will! 

What is negotiated tendering?

Negotiated tendering involves the buyer approaching a single supplier to ask them to deliver the work. This is usually based on the supplier’s track record in the industry, or a previous relationship with the supplier.

Following this, the buyer and supplier will negotiate the terms of the contract.

Why is negotiated tendering used?

Buyers might choose a negotiated tendering procedure for highly specialist contracts. Often, this is considered an appropriate method for contracts where there might be a limited number of suppliers available. This procedure is also used to extend the scope of existing projects.

Which sectors and industries use negotiated tendering procedures?  

Negotiated tendering can be used across a wide range of sectors. However, it is much more common in the private sector than the public sector. This is because, in most cases, public sector organisations are required to advertise contracts and follow an open tendering process.

Similarly, buyers from all industries can use the negotiated tendering method, from logistics to healthcare. However, negotiated tendering is most commonly found in the construction and engineering industries.

Are there any challenges with negotiated tendering?  

While negotiated tendering is appealing to many buyers and suppliers, it’s not without its challenges.

Some organisations view negotiated tendering as exclusive and unfair. This is because there is the potential for ‘cosy’ relationships to develop, meaning other suppliers miss out as a result.

It can also be difficult for smaller businesses to compete in this process. With this method, most suppliers are approached because of their track record in the industry. Therefore, larger businesses with well-known reputations are more likely to grab the buyer’s attention. However, this doesn’t mean that it’s impossible for SMEs to compete.

Let’s recap… 

Negotiated tendering involves the buyer approaching a single supplier to ask them to deliver the work. This is usually based on the supplier’s track record in the industry, or a previous relationship with the supplier.

This process can be used across a range of sectors and industries. However, it is more common in the private sector, particularly within the construction and engineering industries.

Buyers could face certain challenges by using a negotiated tendering procedure. For example, some organisations view this method as exclusive and unfair. In particular, because it can make the tendering process more difficult for SMEs.

How Hudson Succeed can help 

So, what’s next for your business?

Enter Hudson Succeed!

We have over 60 years of bid writing experience and an 87% success rate. Whether you’re completely new to tendering or aren’t seeing results – we can help. There are four bid writing packages available:

  • Tender Writing 

Once you’ve found a tender you’d like to go for, send it over to us. One of our Bid Writers will write the tender response for you. We’ll provide a full Tender Writing breakdown and even submit it on your behalf.

  • Tender Mentor  

Tender Mentor can give your tender response a once over before you submit it. Our Bid Writing Team will analyse your response, notifying you of any errors and opportunities for improvements prior to submission.

  • Tender Ready 

During the Tender Ready service, our team will create professional policies, procedures, and case studies in your company branding. If you already have this content, we will review everything carefully to ensure that nothing is missed. Once the programme is complete, you’ll have access to three days’ worth of bid consultancy. This can be used for bid writing, tender reviews, or general advice and guidance.

  • Tender Improvement  

The Tender Improvement package can help those who have tendered before but aren’t seeing results. Our Bid Writers will assess your previous responses and work with you to develop improved content.

Get in touch to find out how we can help your business grow.

Need help with searching for tenders?

Are you curious about finding tenders for your business?

There’s no shortage of websites offering multi-sector tendering opportunities and leads.

Ideally, you should be searching for a sector-specific site that posts all unique, public and private sector opportunities.

Our sister company, Hudson Discover, has 11 sector-specific tendering portals.  One centralised and easy-to-navigate portal can help you save time, streamlining the process.

Once signed up, you’ll have access to your own dedicated Account Manager. They’ll be able to answer any questions you may have about public sector contracts. Likewise, you’ll also get an email alert when new and relevant tenders are uploaded to your sector.

A subscription to one of our industry-specific portals will include:  

  • Unlimited portal access. You can browse your industry’s portal to your heart’s content. See all the opportunities that are available, intuitively categorised, and easily accessible.
  • A daily email bulletin. When you sign up to a portal, you’ll receive an email alert when new tenders are uploaded.
  • A dedicated Account Manager. They’ll handle any questions or queries you may have about the portal.
  • A free 20-minute phone consultation with a Bid Writer. Our expert Bid Consultants will chat with you about anything tender related. 

What opportunities can I expect from a tender search on a Hudson Discover portal?

Hudson Discover hosts all kinds of tenders in both the public and private sectors. These are inclusive of, but aren’t limited to:

Discover Elite

If you want to streamline the process even further, you can sign up to Discover Elite via your chosen portal. With this service, a dedicated Account Manager will find live bids on your behalf. They’ll speak with you weekly to discuss opportunities that may interest you. This is especially helpful for those with little time to spare due to busy schedules.

Vocal

Our support doesn’t end there! Our creative content agency, Vocal, are on hand to help.

The Vocal Team are not afraid to stand up and be heard. And we make sure our clients aren’t either! From small, micro-businesses to large organisations, we are vocal about the things that make your business unique.

Our creative service is dedicated to growing your business through striking and thought-provoking content. We’ll take your bid and give it a complete makeover. With professionally designed tender documents, you’re sure to make an impression on the buyer!

Our team specialise in six areas, including:

If you’d like to know more about what we can do for your business, introduce yourself to the team!

Contact us to find out more! 

Find more helpful tips and advice in our blogs. We cover topics including:   

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