Bev's journey · Procurement · Lesson 1

Three quotes, three different things

Before you start

In the story

The cheapest quote left out the information, so it wasn't the cheapest.

Back to the story

The right way

The pack

Sam gives Bev the information pack: what comes back, when, in what format and to what standard. Every firm gets the same pack, and each tender says how it will meet it.

The comparison

Bev compares like with like: price, programme and information, line by line.

The result

£410,000, £385,000 and £395,000. The middle one wins, and month eight is boring.

Three quotes, three jobsThe cheapest on paper, and £75,000 dearer by month eight.
Three quotes, one jobThe same pack for everyone, and a comparison that means something.
Think like Bev

Before you compare prices, check they're prices for the same thing. Did every firm get the same information requirements, and does every quote say how it will meet them?

Continue Bev's journey

Story 2: Signing up the subbie

The new electrical firm starts on Monday. Nobody ordered their logins, so everything comes by email.

The right way, explained

The right way, explained

Ask three builders to quote for "a house" and you'll get a bungalow, a semi and a castle. Hand them all the same plans first.

If you're the subcontractor

If you're the subcontractor

Read the information requirements in the enquiry and price them. If they're missing, ask. Leaving them out wins the job and loses the margin.

In the town See it in the town: three quotes, and the cheapest wasn't. Why?

Bev's view: every firm around ours gets the same pack, so every quote is for the same job.

Who works for whom The project team as a town. Client Town sits in the middle. Around it are lead firms: your firm, the Tier 1 leading the work, another lead firm, and space for more. Each lead firm has its own firms working for it, such as Designer Town, a groundworks subcontractor and a supplier, and each of those has small task teams. Your firm and its firms are shaded together as your delivery team. Solid lines show requirements and information exchange; dotted lines between the lead firms show coordination. Rex, Sam and Dave are in your firm, Alex is in Designer Town, and the Clerk of Works is in Client Town. THE WHOLE PROJECT TEAMYOUR DELIVERY TEAMCLIENT TOWNwho the work is forYOUR FIRMthe Tier 1 leading the workANOTHER LEAD FIRMits own appointment…as many more as the job needsDESIGNER TOWNAlex's firmGROUNDWORKSa subcontractorSUPPLIERDESIGNERSUBCONTRACTORa task team DaveSamRexAlexClerk of Works
Solid lines. What's needed, and the information that comes back.
Dotted lines. Lead firms coordinating with each other.
Pick a groupWho works for whom

The client

In the picture
ISO 19650 calls it
Watch out for

This is the tender pack, the same for everyone!

Every firm prices the same information requirements, so the quotes compare.

Sam's Heads Up Check the pack is actually attached

InfoTown good practice: Every firm gets the same information requirements with the enquiry.

On your job: Your procurement system may send packs out automatically. Check the information requirements are attached, not just mentioned.

For the audit What the auditor will ask
  • Show me the information requirements that went out with this enquiry.
  • How did you compare the tenders on information?
For the audit What good evidence looks like
  • The enquiry pack, with the information requirements in it.
  • A tender comparison that includes each firm's information response.
From the standard
ISO 19650 Passing the requirements down

ISO 19650 expects the lead firm to pass its information requirements to every firm it appoints, starting at tender, so each can say how it will meet them.

Based on the ISO 19650 series: the ideas come from the standard; the plain-English wording, examples and advice are InfoTown's. ISO 19650 is © ISO and BSI. You'll hear the same language across the industry. Read more for free in the Information Management Initiative (IMI) Framework guidance from BSI and nima. For the full requirements, use the standard itself.