Preferred Contractor and the Negotiated Tender Route

When planning a construction project, one of the first decisions is how to appoint a contractor. For many, the traditional route is to send out a tender to several contractors and compare prices. While this can seem like the fairest approach, it is not always the most efficient or cost-effective. Increasingly, clients are turning to the negotiated tender route, working with a preferred contractor from the outset.

What Is a Negotiated Tender?

A negotiated tender involves selecting one contractor at the start and working directly with them to agree the scope, cost and programme of works. Instead of competing against others, the contractor collaborates with the client and design team to build the project in the most effective way possible.

‍The Limitations of Competitive Tendering

Competitive tendering has its place, but it is not without drawbacks. When multiple contractors are invited to tender, much of the focus falls on price alone. This can create pressure to cut costs in ways that may not support the long-term success of the project. It can also lead to delays, as contractors price against incomplete information or make assumptions that need to be reworked later.

In some cases, lowest-price tendering can even prove more expensive in the end, if design changes, variations or disputes arise during delivery.

‍The Advantages of a Preferred Contractor

Working with a preferred contractor on a negotiated basis offers several benefits:

• Early Involvement
The contractor is brought in during the design stage, providing valuable insight into buildability, programme and cost before the project reaches site.

• Collaboration Over Competition
Rather than competing for the cheapest price, the contractor works alongside the client and design team to achieve the best value.‍

• Greater Cost Certainty
Costs are developed transparently, with the contractor helping to identify risks and opportunities early on. This reduces the chance of unexpected variations later.

• Time Savings
Because the contractor is already involved, there is no lengthy tendering process. The project can move forward more quickly and with greater clarity.

• Trust and Continuity
A preferred contractor is chosen for their track record, capability and relationship with the client. This builds confidence and ensures a smoother delivery.

The TB Projects Perspective

At TB Projects, we have seen first-hand the benefits of the negotiated route. Being part of the conversation from the start allows us to contribute practical ideas, flag potential challenges and ensure the design aligns with the client’s budget and goals.

Clients often tell us that this approach gives them greater peace of mind. Instead of managing multiple competing parties, they have one contractor invested in the project’s success. The result is a process that feels more open, more collaborative and, ultimately, more successful.

‍A Smarter Way Forward

The negotiated tender route is not about avoiding competition, but about choosing collaboration over conflict. With the right preferred contractor in place, clients can feel confident that their project will be delivered with care, efficiency and value at its heart.