Negotiation - Private Tenders and their implications

Approach from one of your clients 

Due to Business Development calls, you will sometimes receive a tender opportunity. Tenders will stretch your resources and your commitment to the negotiation process. 

Tenders can be very time-consuming; they will usually require a couple of your team to review and complete the documentation. 

 During the tender process, you will have to provide at the very least the following documents evidencing your compliance with: (Sample only, not conclusive)  

• The Health and Safety at Work Act 1974, (on the health and safety of permanent and temporary agency workers)  

• The Bribery Act 2010,  

• The Criminal Finances Act 2017 

• The Economic Crime and Corporate Transparency Act 

• The Modern Slavery Act 2015 

• The Working Time Regulations 1998 regarding holiday pay and rest breaks and rest breaks for temporary workers and employees 

•  The Employment Rights Act 1996 (to show that you provide Employee Contracts, Terms and Conditions, Written Statements of Particulars, and pay-slips) 

• The National Minimum Wage Act 1998 

• The Conduct of Employment Agencies and Employment Businesses 2003 (In the supply of temporary agency workers and the introduction of permanent candidates) 

• The Agency Worker Regulation 2010 

• The Equality Act 2010- EDI (Equality, Diversity, and Inclusion)   

• The Government’s net zero strategy   

Questions to ask yourself before starting the tender process.  

A tender process can put pressure on the organisation if the correct support structure is not in place.  

Ask yourself the following questions which may determine what you do next.  

1. Is this a tender you would like to win? 
2. Does this fit your tender criterion? 
3. Tenders require a lot of effort from the whole team. Do you have buy-in from them? 
4. Have you completed your due diligence on the client?  
5.  Do you have the infrastructure required? People and their technical ability? 
6. Can you assign colleagues who have the necessary skills to deliver?  
7. Do they operate in your sector? Do you have the experience? Can you deliver?  
8. Have you just started a tender process with another client? 
9. Are you looking at a new sector opportunity? 
10. Will there be additional costs to the organisation? I.e., insurance  

A Service Level Agreement (SLA) is part of the tender process and to measure performance using KPIs. 

The role of the Service Level Agreement 

A Service level agreement helps both parties through the tender process and it is usual to layout the responsibilities of each party, client, and the recruitment companies. Giving structure to any negotiations you may have. Here are a set of rules to Service level agreements that can help you navigate the process more seamlessly: 

• A service-level agreement (SLA) defines the level of service expected by the customer from a supplier. 

• While the vendor contract focuses on the duties of both parties. 

• The document keeps both parties on the straight and narrow and ensures both parties stick to their commitments.  

• The driving force should be the Service Level agreement, it will give clarity to both parties.  

• Ensure you have clear objectives to achieve on both sides.  

• Have a defined escalation process. Ensure there is buy-in from both parties at a senior level.  

• Have set regular meeting once a quarter at the very least to discuss performance.  

• Establish a series of Key Performance indicators (KPI’S) which you benchmark against both client and recruitment organisation.  

• Ensure you have your walk away point agreed. 

• Remember if you are unsuccessful on your tender take the learning,  

• SLA 's are particularly helpful when the service delivery Is complex i.e., International or there are various sites. 

 Remember there is always a reason for tendering.  

Your research should show if there is an incumbent agency, the obvious question to ask is why they are considering a new supplier. It could be an annual review of the market, service, or price. 

 It is not- uncommon for the incumbent supplier to win the tender, they have experience of the client. 

Remember to hold a postmortem on all your tender applications.  

Choose wisely which tenders you choose, make sure they fit your overall strategy and corporate direction and most importantly stick to your values.