1300 003 077

Commercial Contract Lawyer’s Guide to Tenders

A commercial contract lawyer will often prepare a request for tender. The important things that lawyers consider in a request for tender include process contracts and tender assessment criteria. If a business gets its request for tender documents wrong, it can lead to costly mistakes.

Whether you are tendering or seeking quotes, the wording of a request for tender is important. Commercial contract lawyers understand the importance of the tendering process. Because of this, many requests for tender will have very specific requirements and many terms and conditions.

commercial contract lawyer

This article was written by Farrah Motley, Director of Prosper Law and a commercial contract lawyer.

Contact Form – Header

A commercial contract lawyer’s guidance on a compliant tender

A request for tender is an invitation to make an offer to supply goods and/or services. Usually, a request for tender will have specific criteria that an offer must meet. If the offer does not meet those criteria, an offer may be non-compliant.

commercial contract lawyer

If a commercial contract lawyer has prepared the request for tender terms and conditions, they may have written what the consequences of a non-compliant offer are. And these consequences can be as serious as the offer not being considered at all. And if this happens, a business’s hard work in preparing the tender submission may go to waste.

An RFT may include the following contents:

  • a description of what the client is seeking (scope of work/requirements)
  • what criteria offers will be assessed against
  • questions for tenderers to respond to
  • a draft contract
  • terms and conditions of the tender

Tender submissions can take a long time to prepare. For some businesses, it may be worthwhile consulting with a tender consultant. Further, tenderers are rarely compensated for the effort involved in preparing the tender.

Do I need a commercial contract lawyer to read the draft contract?

Requests for tender will typically include a draft contract. The draft contract will apply if the offer is accepted. However, this is generally subject to any contract deviations that a business has submitted with its tender.

There are risks associated with not having a commercial contract lawyer review and respond to a draft contract. And these include:

  • being legally bound by contract terms that you cannot comply with
  • being required to supply additional goods and/or services for no extra money
  • causing friction in the client relationship if amendments are later requested

How will a contract be formed after the tender is submitted?

What happens once an offer is submitted is described in the request for submissions. For instance:

  • a contract is formed once the client accepts an offer
  • a contract is formed only once both parties sign the contract
  • a contract is formed if the client orders goods and/or services

Process contracts

Process contracts are a common feature of tenders. Whether a process contract exists will depend upon the wording in the RFT. A process contract governs the bidding process and may create legally binding obligations on the parties. Those obligations may include:

  • an obligation on the client to consider each tender fairly and not depart from the criteria
  • an obligation on the tenderer to pre-agree to contract terms if the tender is successful

Many commercial contract solicitors understand that process contracts can create legal risk for both clients and tenderers.

How can Prosper Law’s business contract lawyers help?

Prosper Law is Australia’s online law firm. We provide legal advice to businesses and individuals across Australia. Our areas of legal practice include contracts, eCommerce, publishing, legal counsel and employment law.

If you need to talk to a commercial contracts lawyer, get in touch today.

Contact the team at Prosper Law today to discuss how we can provide you with contract legal advice for a fixed fee.

Farrah Motley | Director

PROSPER LAW – Australia’s Online Law Firm

M: 1300 003 077

W: www.prosperlaw.com.au

commercial contract lawyer

Contact an Australian Business Lawyer Today.

Contact us for a free consultation

Lead Form - Hero Section - Header (#6)

Contact us for a free legal consultation

Lead From - Sidebar

About Prosper Law

We provide legal advice to business and individuals across Australia, no matter which State or Territory you are located. Our easy-to-access, online legal services mean that you can talk to our lawyers wherever you are, at a time that suits you.

Need Legal Assistance?

Don’t hesitate – reach out for your free legal assistance today. Your peace of mind is just a click or call away!

Check Out Our Latest Blog Posts

The options for workplace investigation outcomes

The options for workplace investigation outcomes

Workplace investigation outcomes are the actions taken by an employer in response to the outcome of a workplace investigation. Employers may need to take several steps to address misconduct allegations,

Witnesses & workplace investigations – a legal guide

Witnesses & workplace investigations – a legal guide

In workplace investigations, the testimonies of witnesses frequently serve as a key part of the investigation. Often, witness statements and interviews will have a significant impact on the outcome.These firsthand

Unfair Contract Terms & Small Businesses

Unfair Contract Terms & Small Businesses

Unfair contract terms create an unreasonable imbalance of power between contracting parties. Australian law prohibits unfair terms where a party to the agreement is a small business.As of November 2023,