One feature of mining, regardless if it is mining for minerals, metals or other resources, is the frequency of entering into contracts, with contractors, suppliers, joint venture partners, landowners, and so on.

And when it comes time to enter into contracts, whether it be for an infrastructure project or ongoing supply, utilising a standardised Request for Tender can save a lot of time, both on tendering for suppliers and contract administration.

Whilst a Request for Tender is unnecessarily onerous for smaller projects or one-off supply requirements, it’s benefits for tendering and contract administration are numerous.

Firstly, a standardised Request for Tender can be used for various departments within the organisation, and from a legal, corporate reporting and transparency point of view, offers consistency for contracts offered by the business. Staff administering contracts become familiar with contract terms (because generally the same terms will be used for each contract), allowing breaches or departures from the contract terms to be identified before problems escalate to the point of requiring termination of contract.

Standardised Requests for Tender will save both procurement and contract administration teams time, therefore lowering the cost to the organisation of entering into new contracts and administering their terms.

Parties tendering for supply or infrastructure projects are aware of the contract terms from the outset, and are therefore able to structure their responses so as to meet the organisation’s requirements, as well as identify, from the outset, any inability to deliver on project or supply requirements, or to tender on the basis of varied contract terms.

A Request for Tender further provides transparency to all potential suppliers, and may well initially eliminate some suppliers who are unable to meet the contract terms (avoiding a lengthy procurement process, only to discover that the successful supplier is unable to meet the organisation’s legal requirements).

So what does a standardised Request for Tender entail? A standardised Request for Tender will generally comprise:

• a Request for Tender;

• Request for Tender conditions and conditions schedule;

• Conditions of Contract (setting out the terms of the contract ultimately to be entered into between the parties);

• Statement of Requirement and/or Scope of Works;

• Technical Specifications

If you would like further information on utilising a standardised Request for Tender, or the circumstances in which one can be used, please contact Karen to see if we can assist you.

The content of this article is intended in the nature of general information, and cannot be relied upon as legal advice. You should seek specialist advice about your particular circumstances.