What Is Negotiated Tendering?

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Negotiated tendering achieves a contract between a client and a contractor by direct negotiation, rather than competitive bidding. This type of negotiation is used to procure services in specialized areas.

Contractors offering specialized services include those who provide construction of hydraulic systems or airport planning, for example. This type of negotiation minimizes costs for both the client and the contractor. The private sector frequently uses negotiated tendering.

The client may appoint staff consultants for advice on the design requirements and costs. The contractor, responsible for designing and facilitating the construction phase, may hire its own consultants. “Single Direct Design and Build” are negotiated tender agreements.