Executive summary
Issue RFQs against the design package and qualification criteria set in supplier strategy, evaluate bids on comparable technical and commercial terms, and award contracts with clear milestones, payment terms and acceptance criteria. Signed contracts and a mobilisation plan are the deliverable execution needs to begin site or fabrication work.
This stage receives a sourcing structure and qualification criteria from supplier strategy, and a costed design from engineering preparation and budget development; it should not renegotiate scope, only price and terms within that scope.
Contract terms agreed here — milestones, retention, warranty, liquidated damages — become the enforcement mechanism project execution and commissioning rely on.
What this stage must resolve
- A confirmed sourcing structure awaiting formal tender
- Multiple qualified suppliers ready to bid on comparable terms
- Contract terms not yet aligned with financing drawdown conditions
- Need for technical and commercial evaluation criteria before bids arrive
- Long-lead items requiring award ahead of the main contract package
Work performed in this stage
Formal RFQ / tender process
Structured, comparable bid process against a fixed specification.
Negotiated procurement
Direct negotiation with a pre-qualified supplier, typically for specialised or sole-source scopes.
Two-envelope evaluation
Separates technical and commercial evaluation to prevent price from dominating capability assessment.
Milestone-based contracting
Payment tied to verified delivery and installation milestones rather than time elapsed.
Early works / long-lead award
Awards critical long-lead packages ahead of the full contract suite to protect schedule.
Risks and governance considerations
- Payment terms should align with the financing drawdown schedule agreed earlier, not be negotiated independently of it
- Technical evaluation should be weighted to prevent lowest price from overriding proven capability
- Warranty, liquidated damages and acceptance criteria should be explicit in the contract, not assumed
- Contract award triggers mobilisation planning — sequencing and site readiness should be confirmed before signature
What to prepare
- RFQ package built from the confirmed design and specifications
- Supplier qualification and evaluation criteria
- Draft contract terms aligned with financing conditions
- Bid evaluation scorecard (technical and commercial)
- Mobilisation and site readiness checklist
What to measure
Frequently asked questions
How many bidders are needed for a competitive process?
Typically three or more qualified bidders per package to support a genuine comparison, fewer only where the market is thin.
Should price or technical capability be weighted more heavily?
For complex process equipment, technical capability and reference performance should carry meaningful weight, not price alone.
What happens if no bid meets the approved budget?
Reopen budget development or supplier strategy rather than accepting a bid that erodes contingency before execution starts.
Related investment and financing knowledge
Continue on the platform
Educational, supplier-neutral and financing-neutral
Global B2B Group does not sell equipment and does not represent lenders, export credit agencies or development banks. This material is published to help industrial organisations plan, structure and prepare capital projects. It is general information for decision-making, not financial, legal or tax advice.