Degree of commitment expected of participants

5.3 Figure 2 overleaf sets out the information that should be sought from Participants at the different stages of the procurement process under a competitive dialogue procurement.

Figure 2: Commitment expected at each stage of procurement from Participants on major projects

Procurement stage

Number of Participants at end of stage

State of contract discussions at end of stage

Designer

Design and construct sub-contractor

Services Sub-contractor

Bidding consortium

Financial & Economic
Standing/Funding

Phase 1

Prequali-fication

At least three

n/a

None

Demonstrate capacity and capability

Demonstrate capacity and capability

Complete PQQ

Confirm financial & economic standing

Demonstrate capability to raise funds

Phases 2 & 3

Invitation to Participate in Dialogue & Dialogue Phase

Note: this will include a number of submissions from Tenderers

Two or Three

Confirmation of acceptance of key positions in contract summary. Statement of acceptance of standard contract in principle.

1:1000 plans with key depts at 1:500 moving to 1:500 with key departments at 1:200

Construction approach

Services approach

Confirmation that standard contract terms set out in ITPD will be acceptable to consortium members and sub-contractors.

Proposed method(s) of finance

Phase 4

Invitation to Submit Final Tenders (ISFT)

One (and reserve bidder)

Agreement on all key contractual issues affecting price and risk allocation, including payment mechanism and performance regime.

1:200 plans with key departments at 1:50

Confirmation of acceptance of draft contract, payment mechanism, performance regime and allocation of risks within consortium.

Confirmation of acceptance of draft standard contract, payment mechanism, performance regime and allocation of risks within consortium.

Full financial model.

Agreement on all points of principle on specifications.

Statement of support from funders/equity with draft term sheet and acceptance of standard contract terms, payment mechanism and performance regime, financial model and allocation of risks within consortium.

Phase 5

Preparation of Full Business Case

One

Fully developed contract drafts.

As at ISFT above.

Final sign-off on draft contract, payment mechanism, performance regime and allocation of risks within consortium.

Due diligence commences prior to submission of Full Business Case.

Financial close

One

Signed contracts.

All contracts and major sub-contracts in place

Due diligence complete.

5.4 The following sections provide further detail of the activities to be undertaken at each stage of the procurement process and the information to be requested from the participants.