Civil Engineering Reference
In-Depth Information
View from London Way back down to the Olympic Stadium (photo courtesy of
AECOM).
Of course, that is not as great an issue for the private sector, which
falls outside the jurisdiction of the Public Contracts Regulations and is
therefore much less regulated. Private-sector procurers have much more
flexibility to negotiate the price and play one bidder off against another.
However, while this kind of commercially led negotiation may reduce
the price of a tenderer's offer, the outturn cost is often greater than the
tendered figure, either through increased claims or a reduction in the
quality, or even the non-fulfilment of other value-adding elements. This
chapter describes how the appetite of supply chains is monitored and
managed as the programme procurements progress.
Supplier relationship management
Once a procurement reaches the stage of inviting tenders, the process
of bidding, particularly when using eSourcing systems, can become
impersonal. That is because the procurement process must be compli-
ant, secure and above all fair to all participants; also, any conflicts of
interest need to be identified and removed from the procurement process
in order to avoid possible issues or the risk of legal challenge. As an
added level of probity, no direct communication with tenderers can be
