Why a Strong Procurement & Tendering Strategy Is Critical to Project Success

Why a Strong Procurement & Tendering Strategy Is Critical to Project Success

In today’s construction and infrastructure markets, success is no longer driven by price alone. The difference between a profitable project and a commercial failure is often decided long before work starts on site, at the procurement and tendering stage.

At Oak Management Service Ltd, we provide clear, practical and commercially focused Procurement & Tendering Strategy advice to clients, consultants, contractors and the SME supply chain. Our pro-active approach is built on over three decades of Tier 1 main contractor experience and a deep understanding of how commercial risk, opportunity and delivery intersect for all Parties.

We can provide resilience within your business.

But what exactly is procurement and tendering strategy and why is it so important?

What Is Procurement & Tendering Strategy?

Procurement and tendering strategy are the planned approach to how a project is taken to market, bid, selected, and contractually secured. It defines:

  • Understand that extent of scope and interfaces required
  • Stakeholder engagement and input
  • Which forms of contract are used (NEC, JCT, bespoke, etc.)
  • How risk is allocated
  • How the specialist supply chain is selected
  • How competition is created
  • How value, margins and commercial protection are maximised
     

A well-defined strategy considers multiple factors, including:

  • Project objectives
  • Client risk appetite
  • Market conditions
  • Programme constraints
  • Funding requirements
  • Design development status
  • Long-term stakeholder and operational needs
     

In short, the procurement route you choose directly shapes cost certainty, risk exposure, delivery performance and final profitability.

Why Procurement & Tendering Strategy Is So Important

Too often, organisations enter tendering with a “one-size-fits-all” approach. This can expose projects to unnecessary risk, reduce competition, damage supply chain relationships and erode margins.

A strong procurement and tendering strategy deliver tangible benefits:


 

1. Better Cost Certainty

The right strategy ensures pricing is robust, transparent and reflective of real market conditions, reducing the likelihood of disputes, variations and final account shocks.

2. Improved Risk Management

Risk should sit with the party best able to manage it. A considered procurement route avoids the common mistake of simply “pushing risk down the chain”, which often results in claims and commercial conflict later.

3. Stronger Supply Chain Performance

Well-structured and scoped procurement attracts the right contractors, specialists and suppliers, improving buildability, quality and programme certainty.

4. Increased Commercial Confidence

For contractors, the tendering strategy directly affects margin protection, cash flow and contractual exposure. A poor strategy can lock in loss-making positions from day one.

5. Dispute Avoidance

Clear tender documentation, fair risk allocation and well-chosen contract forms significantly reduce the likelihood of formal disputes, claims and adjudications.

Our Approach to Procurement & Tendering Strategy

At Oak Management Services, our advice is grounded in real-world delivery experience across highways, rail, aviation, government works, healthcare, commercial offices, retail, education, fit-out, industrial and refurbishment projects.

Led by Matthew Bines, Principal Consultant Director with 33+ years of Tier 1 contractor expertise, we understand procurement from every angle:

  • PQQ, ITT bid stage and selection processes 
  • Live project delivery
  • Commercial lead on major projects
  • Sector Commercial Director
  • Business Unit Director
  • Group-level commercial leadership
     

This allows us to design procurement strategies that are commercially realistic, contractually robust and operationally deliverable.

What Our Procurement & Tendering Strategy Advice Covers

Our service is not theoretical, it’s practical, commercially focused and tailored to each project or business. We support clients and contractors with:


 

✔ Strategy Selection

We advise on the most appropriate procurement routes, including:

  • Early Contractor Involvement
  • Professional Services
  • Traditional, including CDP
  • Design & Build
  • Two-stage tendering
  • Construction Management
  • Frameworks and Alliances

✔ Tender Planning & Documentation

We help shape:

  • Bid strategies
  • Tender structures
  • Scopes of Work
  • Employer’s and Contractor Requirements
  • Risk schedules and clarifications
  • Evaluation criteria

✔ Contract Selection & Risk Allocation

With full-suite NEC and JCT experience, including bespoke amendments, we ensure:

  • Contract terms align with commercial objectives
  • Risk is allocated fairly and clearly to align with market conditions
  • Ambiguities are removed before contract award

✔ Market Engagement & Competition

We advise on how to position tenders to attract:

  • The right level of interest and competition
  • Competent, financially stable supply chain partners
  • Realistic and deliverable pricing

✔ Bid Risk Reviews & Commercial Challenge

For contractors, we provide:

  • Contract reviews
  • Tender risk reviews
  • Margin and cost opportunity analysis
  • Commercial challenge of assumptions
  • Advice on bid qualifications and exclusions


 

Supporting the Bigger Commercial Picture

Our procurement and tendering strategy advice does not sit in isolation—it links directly into your wider commercial performance, including:

  • Cost and commercial support
  • Interim commercial management cover
  • Value reporting and financial controls
  • Risk identification and mitigation
  • Supply chain management
  • Contract administration
  • Change management and variations
  • Claims avoidance and account resolution
  • Final account preparation and ADR support
     

This holistic approach ensures that the strategy set at tender stage continues to protect you throughout the full project lifecycle.

Why Choose Oak Management Services?

Clients choose Oak Management Services because we offer:

  • ✅ Tier 1 main contractor experience
  • ✅ Multi-sector commercial knowledge
  • ✅ Hands-on, practical advice
  • ✅ Senior-level commercial leadership
  • ✅ Full NEC & JCT expertise
  • ✅ Accredited mediation and dispute avoidance skills
  • ✅ Support for both clients and contractors
  • ✅ Training support provider for professional qualifications, RICS & CIOB
     

We don’t just advise how a project should work, we understand how it really works under commercial, contractual and programme pressure.

Getting Procurement Right from Day One

Procurement and tendering decisions cast a long shadow over every construction project. The right strategy creates:

  • Certainty
  • Control
  • Confidence
  • Profitability
  • Stronger relationships
  • Fewer disputes

The wrong strategy creates the opposite.

If you want to protect margin, manage risk and strengthen delivery performance from the very beginning, professional procurement and tendering advice is not a luxury, it’s a necessity.

Speak to Us

If you would like to discuss how our Procurement & Tendering Strategy advice can support your next project or business plan, we would be pleased to help.

Oxfordshire, OX49
📞 07973 269802
📧 info@oakms.co.uk