Tenders, Contracts & Frameworks

Best Practice Guide for Tenders, Contracts & Frameworks

Winning tenders can seem like quite a complex process but it doesn't have to be.

This is a short overview, focused on explaining what tenders, contracts and frameworks are, along with how they are connected. This applies to formal private sector tenders but is especially focused on government tenders.

We will briefly explain relevant elements of the procurement processes and how bid writing and social value tender responses are now key!

Understanding Tenders, Contracts & Frameworks

You want to win a contract. You need need to bid for, or respond to, a tender.

• Tender: A formal process where businesses compete to win contracts by submitting business proposals outlining how they will meet the buyer's needs. Invitation to tender or ITT is often the term referred to for this process.
• Contract: The legal agreement that details the terms and conditions agreed upon after winning a tender.
• Framework: A pre-approved list of suppliers eligible to supply goods or services over a set period without the need to re-tender for each opportunity. Winning a place on a framework does not get you a contract, but it does provide with you with additional tendering opportunities.

Where to Find Opportunities

Use platforms like Tender Pipeline and the government's Find a Tender service to search for upcoming tenders. These tools also allow you to monitor who is winning contracts and at what value. Understanding your competitors' successes can help refine your own bidding strategy and pricing.

You will need to find relevant tenders and frameworks, following the guidance in the advert, or contract notice, and then register onto the portal, express an interest and respond to the tender. There are key questions to ask yourself before writing a tender response to ensure you have a good chance of success.

Getting Tender-Ready

Preparation is crucial for successful bidding. Follow these practical steps:

• Gather Essential Documents: Ensure you have all necessary documentation, such as insurance certificates, health and safety policies, financial statements, and relevant accreditations.
• Develop Standard Responses: Create a bid library of answers for commonly asked questions to streamline future bids.
• Stay Informed: Keep up-to-date with changes in procurement practices and requirements, particularly around social value and sustainability.

For a detailed checklist, refer to our Tender Ready guide.

Social Value and Evergreen Assessments

Social value has become a core evaluation factor in tenders, especially in the public sector. It reflects your company's contribution to society beyond its commercial activities.

• Understand Social Value Models:
  • Familiarise yourself with the Social Value Model and the TOMS (Themes, Outcomes, Measures) Framework. These frameworks help you articulate your social value contributions in a structured way.
  • The Social Value Model focuses on specific policy outcomes, while TOMS provides a general set of measures applicable across sectors.
• Incorporate Evergreen Assessments:
  • Evergreen Assessments are an extension of social value, carbon reduction planning and broader supplier expectations of NHS tenders.
  • These assessments help you stay aligned with current social and environmental priorities, demonstrating to buyers that you are proactive and committed to continuous improvement.

• • Practical Steps:
    • Measure and Report: Track your social value activities using clear, quantifiable metrics.
    • Align with Buyer Priorities: Tailor your social value proposals to the specific goals of each tender.
    • Engage Stakeholders: Involve employees, suppliers, and community partners in developing and updating your social value commitments.
    • Document Evidence: Keep detailed records to include in your bids, showing real examples of your impact.

Professional Bid Writing

Writing a winning bid involves more than just answering questions. Here's how to excel:

• Tailor Your Responses: Address the buyer's specific needs and avoid generic statements.
• Be Clear and Concise: Use plain language and directly answer all tender questions.
• Highlight Your Strengths: Emphasise what sets you apart and why you're the best choice.
• Avoid Common Mistakes:
  • Don't submit bids with errors or omissions.
  • Ensure you fully understand and respond to the brief.
  • Present your bid professionally with proper formatting.

If the tender includes complex specifications, take the time to fully comprehend them and build your response around their requirements. Seek clarification if needed and demonstrate how you meet or exceed these requirements.

Framework Agreements

Winning a place on a framework can provide long-term opportunities. Keep in mind:

• No Guaranteed Work: Being on a framework doesn't ensure you'll receive contracts but it does mean you are approved and vetted. You are on the supplier list.
• Efficiency: Frameworks streamline procurement for buyers and can reduce tendering costs for suppliers over time.
• Preparation: Understand the specifics of each framework and tailor your approach accordingly. By reviewing framework document requirements you can assess what your business will need to have in place.

Pricing Strategy

A competitive and realistic pricing strategy is essential:

• Analyse Competitors: Use research and feedback to understand how your competitors price their bids.
• Balance Cost and Value: Ensure your pricing reflects the value you offer without compromising profitability.
• Be Transparent: Provide clear breakdowns of costs where required and within the provided pricing schedules.

Follow-Up and Feedback

Regardless of the outcome, always seek feedback:

• Request Detailed Feedback: Understand the strengths and weaknesses of your bid.
• Learn and Improve: Use this information to refine future bids.
• Analyse Competitors: If possible, learn from the approaches of successful bidders.

You may also like our Bid Writing Ultimate Guide.

Frequently Asked Questions for Tenders, Contracts & Frameworks

Tenders FAQ

1. What is a tender? A tender is a formal process where businesses compete to win contracts by submitting proposals outlining how they will meet the buyer's needs.
2. How do I find tender opportunities? Tender Pipeline is our free tool to search for public sector tenders. Private sector tenders are a little more tricky as they do not need to be advertised. However, our private sector page provides direct links to the supplier portals for some of the largest UK organisations.
3. What documents do I need to prepare for a tender? Gather essential documents, such as insurance certificates, health and safety policies, financial statements, and relevant accreditations. Review tenders from you industry and what they are asking for. Use these to create tender answers or templates.
4. How can I write a winning tender proposal? Tailor your responses, be clear and concise, highlight your strengths, and avoid common mistakes like errors or omissions. If the tender includes complex specifications, take the time to fully comprehend them and build your response around their requirements. The key is in the bid no bid decision and ensuring you can compete!
5. What is social value, and why is it important in tenders? Social value reflects your company's contribution to society beyond its commercial activities. It has become a core evaluation factor in tenders, especially in the public sector.

Frameworks FAQ

1. What is a framework agreement? A framework is a pre-approved list of suppliers eligible to supply goods or services over a set period without the need to re-tender for each opportunity. Crown Commercial Services (CCS) is example of a key UK framework organisation who sets up framework agreements in order to provide public sector buyers compliant and efficient routes to work with new suppliers.
2. What are the benefits of being on a framework? Frameworks streamline procurement for buyers and can reduce tendering costs for suppliers over time. Many public sector organisations rely on the use of frameworks, so not being on them can really mean you miss out!
3. Does being on a framework guarantee work? No, being on a framework doesn't ensure you'll receive contracts - you'll often need to compete in mini-competitions or direct awards (no further competition).

Contracts FAQ

1. What is a contract? A contract is the legal agreement that details the terms and conditions agreed upon after winning a tender.
2. What are the key elements of a contract? Key elements include scope of work, deliverables, timelines, payment terms, termination clauses, and dispute resolution processes. Within public sector tenders you will be accepted to read and confirm acceptance of the buyers' terms of business. Within private sector proposals you will likely provide your terms of business (T&Cs) along with your offer or quote.

Differences between Tenders, Frameworks and Contracts

1. What is the main difference between a tender and a contract? A tender is the competitive process of bidding for work, while a contract is the legally binding agreement signed after winning a tender.
2. How does a framework differ from a tender? A tender is a one-off competitive process, whereas a framework establishes a list of pre-approved suppliers who can then bid for work over a set period without needing to complete a full tender each time.
3. Can I be awarded a contract without going through a tender process? In some cases, such as low-value purchases or emergency situations, contracts may be awarded directly. However, for most public sector work, a competitive tender process is legally required to ensure fairness and value for money. The Procurement Act is further pushing this requirement.