Conditions of tender explained

By the Visionex Solutions bid teamLast reviewed 03/11/20266 minute read
The short answerThe conditions of tender are the rules of the tender process. They set out how and when to lodge, who to contact, how to ask questions, what makes a response non conforming, how the buyer will evaluate responses and what the buyer may do, such as shortlist, negotiate or cancel. Read them first: most knock outs live here.

What they usually cover

  • Closing date, time and the lodgement method
  • The contact person and the question process and cut off
  • Mandatory briefings or site inspections
  • The documents that must be returned, and their format
  • Conforming and alternative tenders
  • Evaluation criteria and process
  • The buyer's rights: to clarify, shortlist, negotiate, reject or end the process
  • Confidentiality, conflicts of interest and conduct rules
  • How long your offer must stay open (the validity period)

Clauses that catch people out

ClauseWhat to check
LodgementPortal only? File types and size limits? Separate price file?
CommunicationOnly through the named contact or portal; contact with others can lead to exclusion
Alternative tendersAllowed only if a conforming tender is also lodged
Validity periodYour price must hold for this long, often months
DeparturesAny change to the contract terms must be listed in a specific schedule

A fast way to read them

  1. Highlight every date and time.
  2. Highlight every must, mandatory and will not be considered.
  3. List every document to return.
  4. Note the evaluation criteria and any weightings.
  5. Note the validity period and any security or bank guarantee.

Conditions of tender versus the contract

DocumentGoverns
Conditions of tenderThe tender process: lodging, questions, evaluation, conduct
Draft contractThe work if you win: price, payment, liability, insurance, termination
SpecificationWhat must be delivered and to what standard

Read all three. The conditions decide whether you are considered; the contract decides whether the work is worth having.

Check the conditions with the free tool

Use the free knock out finder to highlight the mandatory wording in the conditions of tender before you start writing. It is a wording check, so read each clause it flags.

Questions

Are conditions of tender part of the contract?

Usually not. They govern the tender process. The contract terms are a separate document, often a draft contract in the pack.

What is a conforming tender?

A response that follows the conditions of tender and answers on the buyer's terms, without departures except where allowed.

What is a validity period?

The time your offer must stay open for the buyer to accept, set in the conditions of tender.

Can I ask for changes to the conditions of tender?

You can ask a clarification question, but the buyer decides. Do not add your own conditions unless departures are allowed.

Sources

Written by the bid team at Visionex Solutions, Melbourne tender consultants and the makers of BidPal. General information only, not legal advice.