Tender Opening & Analysis

Section 1

Purpose

Tender opening is a formal, controlled process governed by strict procedures to ensure the integrity of the tender process. The QS manages the opening, recording and initial review of all tender returns received by the deadline. Following opening, the tender analysis stage involves a systematic comparison of each tender against the Pre-Tender Estimate and against each other — examining total price, elemental build-up, preliminaries, overheads and profit, daywork rates, risk allowances, qualifications and tender completeness.

RICS Tendering Strategies (2015) sets out three methods of tender normalisation for comparing tendered rates against a common baseline: (1) use the average of submitted costs; (2) use the highest price from returns; (3) use the cost plan allowance for that element. Consistent application of whichever method is chosen is essential — the normalisation methodology must be documented and applied uniformly across all tenderers.

Arithmetic errors must be identified and resolved in accordance with the error-handling procedure stated in the Instructions to Tenderers. JCT Alternative 1 (Confirm or Withdraw) gives the tenderer the option to stand by their price or withdraw; JCT Alternative 2 (Confirm or Amend) allows the error to be corrected. The chosen alternative must have been stated in the tender documents — it cannot be selected retrospectively.

Section 2

Key Principles

RICS Tendering Strategies (1st edition, 2015), Section 3.10 — Receiving Tenders: governs tender receipt, opening procedures, error checking, normalisation and post-tender queries.
JCT Tendering Practice Note (2012): defines Alternative 1 (tenderer confirms or withdraws) and Alternative 2 (tenderer confirms or amends the error); the chosen alternative must be stated in the ITT.
RICS E-Tendering (2nd edition, 2010), Section 5: confirms that e-tendering portals with sealed-bid functionality provide timestamped receipt records; tenders received after the deadline should not be opened.
Public Contracts Regulations 2015 / Procurement Act 2023: for public sector contracts, the tender opening must be conducted in a manner that is auditable and demonstrates compliance with the procurement procedure; a minimum standstill period (Alcatel period, typically 10 days) applies between award decision and contract execution for above-threshold contracts.
RICS Tendering Strategies (2015), Section 4.1 — Tender-Scoring Techniques: for quality/price evaluation, the weighting of quality vs price criteria must be stated in the ITT and applied consistently.

Section 3

Practical Application

Step 1

Receive tenders via the e-tendering portal at the stated deadline. Record the exact time of receipt for each submission. Do not open any tender return before the deadline. For late returns, record the late receipt and advise the client — the default position under RICS guidance is that late tenders are not considered, unless there are exceptional circumstances and all other tenderers agree.

Step 2

Open tenders formally using a tender opening form (RICS Tendering Strategies Appendix A): record each tenderer's name, tender sum, date and time of opening, and the names of the QS staff present. For public sector projects, a second witness should be present. Retain the signed opening form as part of the audit file.

Step 3

Conduct an initial compliance check: confirm that the Form of Tender is signed; the certificate of non-collusion is completed; all addenda are acknowledged; and there are no major qualifications. Qualified tenders require a management decision on whether to accept the qualification, seek withdrawal, or treat the tender as non-compliant.

Step 4

Check for arithmetic errors: compare the tenderer's collection totals against the summary. Identify any discrepancy between words and figures in the tender sum. Apply the error-handling procedure stated in the ITT (JCT Alternative 1 or 2) to any tenderer with a material arithmetic error.

Step 5

Prepare the tender comparison matrix: tabulate all tender sums, identify the spread from lowest to highest, and compare each total against the PTE. Analyse the build-up by element or section: compare preliminaries as a percentage of measured works; compare overheads and profit percentages; compare key elemental rates against BCIS benchmarks and PTE rates.

Step 6

Normalise the tender returns: apply the agreed normalisation methodology to any provisional sums, PC sums, daywork rates or risk allowances that differ between tenderers. The normalised comparison provides a like-for-like total that removes the effect of different approaches to items of unknown scope.

Step 7

Assess qualifications: each qualification must be assessed for commercial and contractual impact. Minor qualifications (e.g. programme comments) may be acceptable; qualifications affecting contract conditions, liability, or payment terms are generally unacceptable and should be listed for resolution in post-tender clarifications.

Step 8

Prepare a preliminary tender ranking: list tenderers in order of normalised tender sum. Identify the preferred tenderer for the tender report and clarification round. Do not communicate any results to tenderers at this stage — all communication must wait until after the tender report is approved by the client.

Section 4

Common Mistakes to Avoid

Opening tenders before the deadline — early opening compromises tender integrity and, if information about any tender is communicated (accidentally or deliberately), constitutes a serious breach of parity.
Accepting late tenders without client approval and documentation — accepting a late tender without a formal process exposes the client to challenge from other tenderers.
Applying the error-handling alternative retrospectively — the choice between JCT Alternative 1 and 2 must be stated in the tender documents; applying a different alternative after the tenders are open is not permissible.
Normalising tenders inconsistently — applying different normalisation approaches to different tenderers makes the comparison unreliable and indefensible at audit.
Communicating preliminary results to tenderers before the tender report is client-approved — premature disclosure undermines the confidentiality of the process and may encourage further negotiation outside the formal process.

Section 5

APC Competency & Quick Reference

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

What are the three tender normalisation methods per RICS Tendering Strategies?

RICS Tendering Strategies (2015) identifies three methods: (1) use the average of all submitted costs for that item; (2) use the highest price submitted by any tenderer for that item; (3) use the cost plan (PTE) allowance for that item. The method should be consistent across all tenderers and all normalised items. The normalised comparison removes the distorting effect of different approaches to provisional sums, PC sums, daywork and risk allowances.

What are JCT Alternative 1 and Alternative 2 for arithmetic errors?

Per the JCT Tendering Practice Note (2012): Alternative 1 (Confirm or Withdraw) — the tenderer is notified of the error and given the option to stand by their submitted price (correcting the error in their build-up but not the total) or withdraw their tender. Alternative 2 (Confirm or Amend) — the tenderer is notified of the error and given the option to confirm the original price OR correct it. The chosen alternative must be stated in the Instructions to Tenderers before tenders are issued.

What is the standstill (Alcatel) period and when does it apply?

For public sector contracts above the OJEU/FTS threshold, the Public Contracts Regulations 2015 (Regulation 87) require a minimum 10-day standstill period between the award decision notification and contract execution. This period allows unsuccessful tenderers to seek a debrief and, if appropriate, challenge the award decision before the contract is signed. Failure to observe the standstill period can render the contract ineffective.

Section 6

Tender Opening & Analysis Checklist

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All tender returns received and time of receipt recorded before opening

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Late tenders identified and client advised; default position applied (not considered)

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Tender opening form completed (tenderer names, sums, witnesses, date/time)

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Compliance check completed (Form of Tender signed; non-collusion; addenda acknowledged; no major qualifications)

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Arithmetic errors identified and error-handling procedure applied (JCT Alternative 1 or 2)

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Tender comparison matrix prepared (all sums; spread; PTE comparison)

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Tender build-up analysed (preliminaries %; OHP %; elemental rates vs PTE/BCIS)

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Normalisation applied consistently (provisional sums; PC sums; daywork; risk allowances)

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Qualifications assessed and listed for clarification

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Preliminary tender ranking prepared; results not communicated to tenderers pending client approval

Section 7

CPD Learning Outcomes

Apply RICS tender opening procedures including formal opening records, compliance checks and arithmetic error resolution using JCT Alternative 1 or 2 as stated in the ITT.
Prepare a tender comparison matrix and normalised tender analysis, applying consistent normalisation methodology across all tenderers in accordance with RICS Tendering Strategies (2015).
Identify the standstill period obligation under the Public Contracts Regulations 2015 and explain its significance for public sector contract award decisions.

Section 8