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 (typically 10 calendar days under the Public Contracts Regulations 2015) must elapse between the award decision notification and contract execution. During the standstill period, unsuccessful tenderers may seek a debrief and, if warranted, apply for an interim order preventing contract execution.

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.
Public Contracts Regulations 2015, Regulation 87 — Standstill Period: minimum 10 calendar days between award decision notification and contract execution for above-threshold public sector contracts.
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 and an offer of a debrief.

Step 4

For public sector contracts: observe the mandatory standstill period (minimum 10 calendar days under the PCR 2015; the Procurement Act 2023 maintains a similar standstill requirement). Do not execute the contract until the standstill period has ended and no interim order has been filed. Provide full debriefs to unsuccessful tenderers who request them within the standstill period.

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. Provide debriefs to those who request them. For public sector, publish a Contract Award Notice via Find a Tender (Procurement Act 2023) or OJEU (PCR 2015) within 30 days of execution.

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 provide unsuccessful tenderer debriefs — for public sector above-threshold contracts, tenderers have a right to debrief information; refusing or delaying debriefs can trigger a formal complaint and extend the standstill period.
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 (minimum 10 calendar days under PCR 2015; maintained under Procurement Act 2023) is the period between award decision notification and contract execution for public sector contracts above threshold. During this period, unsuccessful tenderers may challenge the award. If the contract is executed before the standstill period ends, the court may set the contract aside (render it ineffective) under Regulations 96–99 of PCR 2015.

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: minimum 10 calendar days before contract execution)

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Unsuccessful tenderer debriefs provided on request

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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 Public Contracts Regulations 2015 / Procurement Act 2023.

Section 8