Market Soundings

4.10  Some form of market sounding is generally good practice. A market soundings exercise involves determining the potential level of market interest and the current and future capacity by talking directly to potential players, perhaps through issuance of a Prior Information Notice (PIN). Procuring authorities should however take care not to use the market to establish their requirements or to place an undue cost burden on the market at this stage.

4.11  Where projects are not of a standard nature, the procuring authority will be required by their departmental PFU to enter into market soundings. Procuring authorities should discuss these requirements with their departmental PFU at an early stage.

4.12  Procuring authorities need to consider the characteristics of either the supplier market and their own project which may affect market appetite, e.g. shortage of construction capacity due to other projects. If any doubts exist, procuring authorities should consider the case for more systematic market-soundings.

4.13  The Office of Government Commerce has guidance on 'Market Creation for the Public Sector' contained within the 'OGC Successful Delivery Toolkit'.