Reply to post: The problem with public tenders...

When low-balled projects go bad: Scottish pensions agency starts £10m procurement to buy the system Capita could not


The problem with public tenders...

Doing public tenders leaves very little room to reject a supplier because you simply don't trust them to actually deliver. This is part of the reason why companies like Capita keep getting projects like this. Whatever you say about them, they are really good at doing tenders, that is their main expertise.

I do see a potential way around this. If you where to keep track of the projects a company has done before you can determine a 'failure rate' and a percentage to go over budget on average. These two numbers can then be used in tenders, just apply the 'average over budget' factor before comparing prices and demand a failure rate below a certain percentage. That way you can take past performance into consideration, which generally doesn't happen right now. It also motivates companies to do a decent job because not doing so will harm their ability to win other tenders.

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