Prepare and negotiate proposals for contract work

This standard covers the work required to prepare and negotiate a formal proposal for contract work. It covers the evaluation of specification documents (e.g. invitations to tender), the preparation of proposals and the negotiation and agreement of terms with the other party.

This standard is for managers who will be preparing and negotiating proposals for contract work.

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1. check the specification documents and identify your organisation's capacity and capability to carry out the contract work
2. cross-check the information provided in the specifications with any other relevant information
3. assess the opportunities and constraints of bidding for the contract work
4. plan and prepare a suitable proposal to meet the specification and the submission date
5. inform the customer of your intention to submit/not submit a proposal for the work
6. analyse the resources required to achieve the contract based on the information you have obtained
7. produce costings that will provide adequate returns, taking into account the market conditions
8. prepare proposals that meet the customer's requirements and your organisation's needs
9. submit proposals on time and in the form required by the customer
10. conduct post-proposal negotiations that prepare the way for positive working relations with the customer
11. clarify responsibilities, procedures and flexibility within the contract with the customer
12. confirm that decisions and suggestions made during the negotiations are consistent with your organisation's requirements
13. agree and confirm contracts prior to the start of work

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1. the importance of thoroughly checking the specification documents, cross-referencing them and identifying any issues
2. how to use decision-making tools to determine whether a contract should be sought
3. the relevant organisational, legal, resource and ethical issues that might be involved in taking on the contract work
4. the interrelationship between contract work that the organisation may be interested in doing and its capacity to achieve it
5. the reasons why organisations may choose not to apply for contracts even though they are able to achieve them
6. the types of risks that might be involved in contracts and the methods of assessing such risks
7. the sources of information and advice: technical, legal and financial
8. the need for permits, licences or other special requirements to carry out certain types of contract work in your industry
9. the external factors that have a bearing on the delivery of the contract, such as weather conditions, time of year
10. the importance of the cash flow forecast and how to break the overall contract work into key milestones
11. how to evaluate the resources required: financial, material, capital and human and the relationship of these to the proposed budgets 
12. how to arrive at a costing which takes into consideration the prevailing market conditions and the actual cost of providing the products or services required in the contract
13. how to prepare proposals for contract work
14. the opportunities that may be available to discuss the work with the customer and how this can contribute to positive working relationships
15. the principles of contract law
16. why post-proposal negotiations may be necessary and how to conduct them
17. when it may be advisable to seek assistance with the negotiations to help achieve a successful outcome
18. the limits to which the organisation will go to secure the contract
19. the varying degrees of flexibility and constraint that contracts may have, depending on the nature of the work and the customer involved

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2

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2015

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Current

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Original

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Lantra

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LANCS47

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Forestry, Coppicing, Engineering Technicians, Gardener, Groundsman, Parks Managers, Production Managers, Property Manager

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9119

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tenders; contracts; negotiate; products; services

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