Two-stage tendering meaning

This checklist identifies the principal points to bear in mind when preparing or assessing a pre-construction services agreement (PCSA). Remember that the content and scope of any PCSA will hinge on the services the contractor is to deliver and the expected length of the pre-construction phase. Consequently, the drafting may differ significantly. For further detail on PCSAs, see Practice Note: Pre-construction services agreements. PCSAs generally draw together aspects from several sources. Core terms are akin to those used in a letter of intent, but with added provisions to address liaising with other parties and preliminary works taking place on site. By contrast with a letter of intent, a PCSA is set out as a conventional legal agreement, with distinct sections for the parties and for recitals. A letter of intent A consultant’s appointment A building contract Key issues and clauses • Background A PCSA should include a recitals or background section that explains the basis for the appointment and the parties’...

In this issue: JCT contracts Building safety Payment Litigation Procurement in construction Infrastructure projects Tax Construction industry news Daily and weekly news alerts New and updated content Construction trackers JCT contracts JCT releases Target Cost Contract family On 25 June 2025, the JCT formally unveiled its comprehensive Target Cost Contract suite. The set comprises, namely, the Target Cost Contract 2024, Target Cost Sub-Contract Agreement and Conditions 2024, Target Cost Contract Guide 2024, and also Target Cost Sub-Contract Guide 2024. Alongside the Target Cost family, the JCT also issued its separate Tendering Practice Note 2024. This family is specifically intended for projects where the Employer seeks to motivate the Contractor by agreeing a Target Cost, with arrangements for both sides to split jointly any savings or overspends (i.e. a pain and gain mechanism). Copies can be purchased via the JCT online store directly. Reference versions will soon appear on Lexis+ Construction, within our...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Schedule of amendments A compiled list of changes to a standard form contract in which the parties record their agreed departures from the issued terms. Accordingly, it should be read alongside the underlying standard form. The parties should ensure any negotiated and agreed schedule of amendments is duly incorporated into the contract. Within NEC3/NEC4 suites, such alterations to the standard form are known as Z clauses. Refer to Practice Notes: Construction contract documents and Selection of standard form construction contracts, and to our relevant Precedent schedules under the Precedents tab in subtopics: JCT contracts 2024—overview, JCT contracts 2016, JCT contracts 2011, NEC contracts and Other standard form construction contracts. Schedule of rates/prices A schedule used in tendering when precise quantities are not established, or within a lump sum arrangement for pricing variations (often termed a Bill of Quantities). The tenderer...

This Practice Note carefully considers the role of pre-construction services agreements (PCSAs), most commonly applied in two-stage tendering. Many construction schemes are now procured through a two-stage route, which contrasts quite markedly with the familiar single stage tender model. Instead of inviting contractors to submit a price for the works in a competitive tender and then moving straight to a contract with the chosen contractor, many employers (even where a traditional or design and build lump sum contract is still intended) prefer to negotiate with contractors and draw on their input earlier in the procurement process. This alternative method is generally also known as two-stage tendering (see Practice Note: What is two-stage tendering?). The scope of services to be undertaken by a contractor up to the point the building contract is entered into, together with the parties’ contractual framework, is usually governed by a PCSA—sometimes referred to as a preliminary contract. What is a pre-construction services agreement? A PCSA is, in substance, an interim...

Infrastructure procurement describes how a facility’s delivery is organised. This Practice Note concentrates on arranging the design, engineering and construction of a facility. For information on funding models, see Practice Note: Funding models for infrastructure. A variety of factors will shape the decision on the most suitable way to procure an infrastructure facility. Factors influencing the procurement method Factors significant when deciding on the form of procurement for an infrastructure project include: the nature of the infrastructure project—eg mining, road, port, energy project the project’s complexity—does it involve process technology or multiple facilities? who the owner is—eg a public body using PPP or a Regulated Asset Base (RAB) model, or a private company experienced in managing works? how the project is funded—by public money, debt or private investment? Lenders may require a particular procurement route the allocation of risk between the parties—is single-point responsibility for project risk required? the price for the project—single-point responsibility comes at a premium the...

Assumptions have been made that this is an above-threshold procurement, conducted via a fully compliant public purchasing process in line with the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, and that standstill notices were issued under PCR 2015, SI 2015/102, reg 86, to the winning tenderer and all unsuccessful tenderers, across the procurement process. We further assume the original contractor stopped trading (without entering insolvency) at any stage. Consequently, we have not examined the safe harbours that allow for modifying or substituting a contractor under PCR 2015, SI 2015/102, reg 72(1)(d) for this analysis. Where a public contract has collapsed because the supplier has stopped trading (with no sign of insolvency), and the contracting authority is contemplating appointing a replacement, several points require attention by decision-makers herein. A few illustrations are outlined below...