Achieving Business Excellence Frameworking Toolkit

Invitation to Negotiate

The invitation to Negotiate should cover any remaining quality issues and the commercial issues needed to establish a Framework Agreement under which projects can be allocated.

The ITN should include:

A statement of how the negiation will proceed
Any additional 'quality' aspects either not covered in the PQQ or which require further investigation. These aspects may be addressed to all pre-qualified candidates or to a particular candidate.
The anticipated form of contract
Project types to form the basis of negotiations
Time and place for return of written submissions

By the time you come to finalise the ITN, you will have:

completed the short-listing process
made a draft of the proposed Framework protocol which must include the form of contract to apply when an order is placed

Example

Here is an example Invitation to Negotiate prepared by MCC:
"Framework agreement for the appointment of constructor teams for the design & construction or construction of education related premises".
This ITN has four sections and three appendices:

Introduction
Background and scope of the framework
2.1 The vision
2.2 A new form of procurement
2.3 Framework objectives
2.4 Operational details
Details of the final selection process
3.1 Quality and financial proposals
3.2 Interview days and site visits
3.3 Format of the submission
Evaluation criteria
Appendix A – Quality proposals

A1 Project delivery proposal
A2 Framework delivery proposals

Appendix B – Financial proposals

B1 Cost estimates for a range of schemes
B2 Proposals for incentive mechanisms

Appendix C – Project details

Note that:

“The vision” mentions sustainable community issues.

“A new form of procurement” lists the key benefits the client is expecting to realise under the framework.

“Framework objectives” expresses the vision in the context of this education programme.

“Operational details” specifies the proposed form of contract and outlines how the constructor will be involved in the management of the framework.

“Evaluation criteria” states the broad principles of how the submissions will be assessed at a ‘macro’ level. It does not extend to the ‘micro’ level found in score sheets.

“Quality proposals” and “Financial proposals” specify what bidders must submit. See RESPONSES TO ITN.

“Project details” indicates some categories of projects. There is no need for the client to present sample scheme designs, but to merely describe the scale and context of each type of project.

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