Common use of Pricing Approach Clause in Contracts

Pricing Approach. The pricing approach used, and response required in the mini-competition, will depend upon the buyer requirements for a particular project and must be stated in the mini-competition documents. The buyer will want the ability to clearly understand actual or maximum costs for a project. Given the nature of projects and the total property portfolio covered, it may not be possible, feasible, or required, to fully cost all requirements/proposals at the mini-competition stage. All costs and/or individual property costs and proposed solutions may not be known until after the project design phase is completed and therefore outline/maximum pricing, and/or pricing for example properties, may be used to identify the most economically advantageous tender for a particular project. Bidders may be required to state the maximum % additions, labour rates and % amendments to project cost in their responses. In mini-competition responses these values may be lower than the value stated in their Framework Agreement to create a better position for the buyer (e.g. % additions and labour rates can be lowered but should not be increased, whilst any applicable discount may be increased). Open book pricing is expected as standard for contracts unless specifically excluded in the mini-competition documentation. It is recognised that many housing providers have access to individual or collaborative deals for certain goods and services that may provide better value for money than the Contractor proposes. If there is a like-for-like substitution for what is proposed by the Contractor that the Contractor can access (potentially through support from the buyer) and the buyer requests such use, this should be incorporated into the contract.