Guide letter 25: Unsuccessful tenderers - advice

Guide letters provide advice about matters architects should consider when composing letters to the parties involved in architectural projects.

1. When and how?

1.1 When your client has instructed you to accept a tender it is not only common courtesy to advise unsuccessful tenderers, it is in the interests of the industry to let tenderers know as soon as possible that they have been unsuccessful.

1.2 However, you cannot write anything to unsuccessful tenderers until you have agreed with your client on the extent and procedure of disclosure of information to tenderers (refer Guide letter 21).You may also refer to AS4120 Code of Tendering which identifies suggests the accepted price should be disclosed in writing to the tenderers. 

1.3 One way of making results known to tenderers is to provide a list of tender amounts and construction times of each tender without disclosing names.

1.4 An alternative is to only advise the range of prices from lowest to highest.

1.5 You should send this letter as soon as possible after the client has issued or instructed you to send the letter of acceptance (refer Guide letter 23).

1.6 Alternatively, if the client wishes to negotiate with a preferred tenderer, a two stage notification process is possible. Again, this must only be done with the consent of your client. In the first instance the non-preferred tenderers are advised of their status as non-preferred. Subsequently, after the successful tenderer has been notified of acceptance, they will receive notification that they have been unsuccessful.

2. Content

Advise:

  • schedule of submitted tender amounts and construction times if agreed to by your client (it is usually advisable not to include tenderers names);
  • that the tenderer was unsuccessful;
  • thank the tenderer for tendering; and
  • that you will be pleased to offer them the opportunity to tender on other suitable work (if applicable).
3. Action

3.1 Writing this letter is recommended.

4. Are there other possibilities?

4.1 You could advise all tenderers immediately subsequent to opening of the tenders, but prior to a decision. This occurs at public openings of tenders, often for government work, results of which are now posted on the internet. You would need to obtain your client’s consent.

4.2 Unsuccessful tenderers are likely to have deployed significant time and resources in preparing the tender and thus you may offer to advise them of your willingness to discuss any questions they have or provide feedback to improve their chances of achieving success in future. 

5. Copies

5.1 Architect's file

5.2 Client

Disclaimer

This content is provided by the Australian Institute of Architects for reference purposes and as general guidance. It does not take into account specific circumstances and should not be relied on in that way. It is not legal, financial, insurance, or other advice and you should seek independent verification or advice before relying on this content in circumstances where loss or damage may result. The Institute endeavours to publish content that is accurate at the time it is published, but does not accept responsibility for content that may or has become inaccurate over time. Using this website and content is subject to the Acumen User Licence.

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Related Notes

Guide letter 21: Confirmation to client - tender details
Resources
20 December 2011
Guide letter 23: Successful tenderer - letter of acceptance
Resources
29 August 2012

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