Award Recommendation

Section 1

Purpose

The Award Recommendation is the formal step at which the client approves the QS's preferred tenderer recommendation and authorises the QS to proceed to contract preparation. It is distinct from contract award: the client's approval of the Tender Report recommendation is an internal governance decision; actual contract award occurs when a binding contract is executed or, in some circumstances, when a letter of intent creates interim contractual obligations.

The QS must advise the client on the appropriate mechanism for formalising the appointment: a formal building contract (the preferred approach); or a Letter of Intent (LOI) as an interim measure where programme pressure requires the contractor to commence preliminary activities before the formal contract is executed. LOIs carry significant legal risk and should only be used where the formal contract will follow within a short and defined period.

For public sector contracts above the procurement threshold, the standstill period — 8 working days running from publication of the contract award notice under s.51 of the Procurement Act 2023 — must elapse before the contract is entered into. Unsuccessful tenderers will already hold their assessment summaries, issued under s.50 before that notice was published, and may during the standstill period apply to the court for an order preventing the contract being entered into.

Section 2

Key Principles

RICS Tendering Strategies (1st edition, 2015), Section 4.7 — The Route from Tender to Contract: governs the steps between tender approval and contract execution, including the use of LOIs.
Procurement Act 2023, s.51 — standstill periods: a minimum of 8 working days running from publication of the contract award notice before an above-threshold public contract may be entered into. Under reg 87 of the Public Contracts Regulations 2015 the period was 10 calendar days from the award decision notification, and that continues to apply to procurements commenced before 24 February 2025.
JCT Tendering Practice Note (2012): confirms that a contract is formed when the employer accepts the contractor's tender in an unqualified manner; any qualifications or amendments to the tender at acceptance stage create a counter-offer, not a contract.
RICS Appropriate Contract Selection (2nd edition, 2024), Section 4.2 — Essential Elements Required to Create a Contract: offer, acceptance, consideration, intention to create legal relations — all must be present for a binding contract.
Letters of Intent: not a substitute for a formal contract; their legal effect depends on their precise wording; a poorly drafted LOI can create an unintended binding contract at the LOI sum, or leave the client with no enforceable contract if the contractor walks away.

Section 3

Practical Application

Step 1

Present the Tender Report to the client for formal approval. Confirm that the recommendation reflects the full project team's view. Ensure the client has sufficient information to make an informed decision — if the tender sum exceeds the approved budget, the client must formally acknowledge this and confirm they accept the revised position before approving the award.

Step 2

Obtain client sign-off on the Tender Report in writing. For public sector clients, the award decision must be documented in the project file as an auditable record of the decision-making process. For private sector clients, a written email confirmation of approval is the minimum acceptable evidence.

Step 3

Issue award decision notifications to all tenderers simultaneously. To the preferred tenderer: a notification of intention to appoint (not a formal award letter until the standstill period ends for public sector, or until the contract is executed for private sector). To unsuccessful tenderers: a notification of outcome with a summary of the evaluation result — for public sector procurements this is the assessment summary required by s.50 of the Procurement Act 2023, issued to every assessed supplier at the same time and before the contract award notice is published.

Step 4

For public sector contracts: observe the mandatory standstill period (8 working days from publication of the contract award notice under s.51 of the Procurement Act 2023; 10 calendar days under reg 87 of the PCR 2015 for procurements commenced before 24 February 2025). Do not enter into the contract until the standstill period has ended and no court order has been made. Assessment summaries must already have been issued to every assessed supplier before the contract award notice was published.

Step 5

If programme pressure requires the contractor to commence preliminary work before the formal contract is executed, advise the client on the use of a Letter of Intent. Confirm: the LOI should be for a specified, limited scope (mobilisation, long-lead procurement, pre-construction services only); include a cap on expenditure; state that the formal contract will supersede the LOI; and confirm the governing contract form. Seek legal advice on LOI wording.

Step 6

Prepare the formal contract documents in parallel with the standstill period or LOI period. Confirm all contract particulars with the preferred tenderer. Coordinate insurance, bond and warranty requirements before execution.

Step 7

Execute the formal building contract: both parties sign; confirm the execution method (as a deed — 12-year limitation; or under hand — 6-year limitation); retain originals. Confirm that the Principal Contractor appointment under CDM 2015 is formalised at or before contract execution.

Step 8

Notify all unsuccessful tenderers that the contract has been executed. For public sector, publish a contract details notice on Find a Tender (the central digital platform) within 30 days of entering into the contract, or 120 days for a light touch contract (s.53, Procurement Act 2023). The contract award notice under s.50 is published before the contract is entered into, not after.

Section 4

Common Mistakes to Avoid

Executing the contract before the standstill period ends (public sector) — this renders the contract potentially ineffective and exposes the client to a procurement challenge; the contract may be set aside by the court.
Issuing an LOI without a defined scope, cap and governing contract form — an open-ended LOI can expose the client to unlimited expenditure and disputes about whether a full contract has been formed.
Treating the client's verbal approval as sufficient — the award decision must be in writing; verbal approvals are not auditable and cannot demonstrate compliance with governance or procurement obligations.
Failing to issue assessment summaries — for public sector above-threshold contracts, every supplier that submitted an assessed tender must be given an assessment summary under s.50 of the Procurement Act 2023, and the contract award notice may not be published until they have gone out. Delay therefore stops the standstill period from beginning at all.
Not confirming the CDM Principal Contractor appointment alongside contract execution — CDM 2015 requires the Principal Contractor to be formally appointed before the construction phase begins.

Section 5

APC Competency & Quick Reference

APC Competencies: Procurement & Tendering (L2) | Legal & Regulatory Compliance (L2) | Cost Management (L1) | Commercial Management (L1)

What is a Letter of Intent and what are its risks?

A Letter of Intent is an interim document instructing the contractor to commence preliminary work before the formal contract is executed. Risks: (i) poorly worded LOIs can inadvertently form a binding contract at the LOI cap, preventing the client from changing contractor; (ii) an LOI without a cap on expenditure creates unlimited financial exposure; (iii) if the formal contract is never executed, the LOI may be the only enforceable document — governing payment, liability and dispute resolution on inadequate terms.

What is the standstill period and what happens if it is not observed?

The standstill period is the period that must elapse before a public sector contract above threshold may be entered into: 8 working days running from publication of the contract award notice under s.51 of the Procurement Act 2023, or 10 calendar days from the award decision notification under reg 87 of the PCR 2015 for procurements commenced before 24 February 2025. During this period, unsuccessful tenderers may challenge the award. If the contract is entered into before the standstill period ends, the court may set it aside (render it ineffective) — the remedies sit in Part 9 of the Act, and in regs 96–99 of the PCR 2015 for procurements still governed by them.

What is the difference between executing a contract as a deed and under hand?

A contract executed as a deed carries a 12-year limitation period for breach of contract claims (Limitation Act 1980, s.8). A contract executed under hand (simple contract) carries a 6-year limitation period (s.5). Construction contracts are typically executed as deeds to provide the longer limitation period, which is particularly important for latent defects that may not appear until several years after completion.

Section 6

Award Recommendation Checklist

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Tender Report presented to client; tender sum vs approved budget position confirmed

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Client written approval of Tender Report obtained

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Award decision notifications issued to all tenderers simultaneously

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Standstill period observed (public sector: 8 working days from publication of the contract award notice)

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Assessment summaries issued to every assessed supplier before the contract award notice

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Letter of Intent issued only if necessary; scope, cap and governing contract form confirmed

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Formal contract documents prepared in parallel with standstill/LOI period

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Contract executed as a deed (12-year limitation) or under hand (6-year) — confirmed with client

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CDM Principal Contractor appointment formalised at or before contract execution

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Contract Award Notice published (public sector, within 30 days of execution)

Section 7

CPD Learning Outcomes

Describe the steps between client approval of the Tender Report and formal contract execution, including the standstill period obligation, Letter of Intent risks, and the CDM Principal Contractor appointment requirement.
Advise clients on the legal risks of Letters of Intent and the circumstances in which they are and are not appropriate as an interim measure before formal contract execution.
Identify the consequences of failing to observe the standstill period for public sector contracts under the Procurement Act 2023.

Section 8