Well-drafted RFT saves government from liability to tenderers

When principals engage with the market for the procurement of goods and services, careful consideration and time is normally spent reviewing conditions of contract to ensure that the document adequately manages risk and addresses the specific requirements of the principal.

The recent case of IPEX ITG Pty Ltd (in liq) v State of Victoria (2010) VSC 480 highlights the importance of adequate review and drafting of the invitation to tender document to ensure that the drafting of the terms of the invitation to tender minimise any exposure to process contract risk.

Facts

On 20 May 2002, the Parliament of Victoria issued a written request for tender (RFT) for system integration services to implement a new desktop standard operating environment for the parliament. The plaintiff, Ipex, was one of a number of suppliers that submitted a tender in response.