There are a number of strategies that governments can adopt to reduce bidding costs which would not affect value for money.
These include:
• avoiding premature project announcements, and allowing sufficient time for pre-tender phase preparation;
• adopting a sensible procurement timetable, and sticking to it;
• only issuing the request for detailed proposals once all necessary preparatory work has been completed, thereby minimising the need for addenda and re-bids;
• ensuring the government project team is resourced with highly capable people;
• adopting a clear and effective governance structure to facilitate quick decision-making on the government side;
• interacting effectively with bidders during the tender process, consistent with appropriate probity arrangements;
• not asking bidders to provide information which isn't needed to evaluate their capability, or to achieve certainty on commercial terms prior to the appointment of a sole preferred bidder;
• reducing the amount of bid phase design work required from bidders, and instead placing greater reliance on the project contract requirements, including fitness for purpose warranties, the requirements of the performance specification (including minimum architectural outcomes) and the payment and abatement mechanism; and
• conducting due diligence investigations (e.g. geotechnical, contamination, heritage) for the benefit of all bidders, where this is more efficient.