Commercial property tender process

The tender process is widely used where a commercial property owner is engaging building contractors or is selling a property. Requests for tenders can create a separate 'process contract' and this process contract has implied duties or obligations. It is useful to understand these duties and obligations. The consequences for getting it wrong can be costly should unsuccessful parties seek compensation.

Implied terms

When a party makes a formal request for tenders (the offer) and that request is met with a complying tender bid (the acceptance) then a 'process contract' is formed completely separate from the principal agreement for the sale of property or for construction services. When a separate process contract arises there are several obligations or duties that are implied into the tender process unless they are specifically excluded by the tender document. These obligations and duties are: