9 Behaviour and Ethical Principles for Tendering That You Should Know About

Tendering is referred to as an official process for seeking offers for the supply of goods and services or the disposal of property. In this process, an invitation is extended from one party (Local Government) in response to which offers are made for tenders after considering predetermined assessment criteria, before the development of a written contract.

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Some Unsaid Rules

The local government of NSW have formulated various standards for procurement and tendering activities for all councils and their contractors & suppliers. The following is a brief of all the standards and principles that ensure appropriate tendering activities are upheld:

  • Accountability and transparency

All the councils need to ensure that the process of awarding tender contracts is clear, open and fully documented because the scale of these contracts is high, even small errors can lead to significant monetary losses, so transparency and accountability are important.  

  • Honesty and fairness

Councils are expected to conduct all procurement, tendering and business relationships with honesty, probity, and fairness at all times. Bias towards any supplier or contractor is purely unethical and not allowed. Council officials are not to disclose any proprietary or confidential information to any third person.

  • Consistency

Consistency in tendering activities is a must to prevent any confusion or irregular activities in the procurement process. Consistency can be referred to as the following:

  1. Conditions for all contractors shall be the same on any particular tender
  2. Criteria for evaluation shall be clearly indicated
  3. All the necessary requirements shall be explicitly specified
  4. Same information shall be provided to all the contractors
  5. The evaluation and selection criteria shall be based on the information contained in the tender documents
  • Rule of law

Councils need to comply with all legal obligations; including all the provisions of the Local Government Act 1993 and the Regulation. Any action against the mentioned obligations will result in legal complications.

  • No conflict of interests

If there is any conflict of interests with a council official, then the official is expected to report the interest without any delay. It is established to prevent breaches of public interest, guiding the council officials towards ethical practices.

  • Intention to proceed

If there is an intention to proceed with a contract, only then the councils are expected to invite or submit tenders. They need to have the appropriate funds required for the tender to ensure that official time and money are not wasted on such useless practices.

  • Cooperation

Cooperation is the key to successful tendering activities. Councils are expected to encourage professional relationships based on respect, trust and open & efficient communication. They shall employ a non-adversarial approach to the resolution of all disputes.

  • No improper advantage

Council officials are expected to treat all contractors alike. No improper advantage shall be given to any particular contractor over his competitors to ensure an ethical tendering process. It should be a fair competition among all competitors.

  • No anti-competitive practices

Councils shall avoid being a part of collusive or any anti-competitive practices; preventing biased practices towards any particular contractor.

Play By The Right Rules

If you want to submit a winning bid for tenders in NSW, then you need to be mindful of the documentation you need to prepare and the manner it must be written in.  You can see from the above points that local councils have strict selection criteria when selecting the winning company on tender, so it’s important to get you tender application right the first time. Its good to know that contractors are given an equal chance to submit a winning tender bid, however, tender writing requires a keen, creative and experienced approach.  If you want to give your company the best chance at landing a big tender, then you should know that Madrigal Communications are specialists in writing tender responses and tender bids. Contact us to find out more.

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