Making the most of procurement opportunities

The North of Scotland is going through some transformational changes, which offer significant commercial opportunities for local businesses. Upcoming projects include the chance to work with the likes of SSEN Transmission, Forestry and Land Scotland and Scottish Water. Understanding the procurement processes associated with these contracts as well as the contractual terms which would apply to the successful bidder is absolutely crucial.

Chamber member Ledingham Chalmers LLP is well-placed to advise on these issues. Jill Fryer, who has 25 years’ experience of advising on procurement and commercial contracts explains: “To maximise their chances of success, it is really important that businesses make themselves aware of potential contract opportunities and understand how procurements will be run and exactly what is being asked of them in their tenders. There are various sources of support available to businesses to help them with bid preparation. It is also vital that bidders understand the terms and conditions of any contract they might be awarded.

While there is often little room for negotiation of these terms, a full understanding of risk and potential liability is essential in order to allow tenderers to price their bids appropriately. Key issues to consider will include the pricing mechanism (including provisions for variation of price), warranties and indemnities, liability, insurance requirements, and consequences of delay in delivery/ performance. It is also worthwhile considering in what circumstances the contract can be terminated and what the consequences of that are, as well as the potential application of the TUPE regulations.”

If you would like to discuss these or other legal matters, please contact Jill directly at jill.fryer@ledinghamchalmers.com

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Procurement is about more than the cheapest price
Tenders subject to the rules are assessed on the basis of the Most Economically Advantageous Tender (“MEAT”) — this is about more than price.

Emphasis is also placed on quality including personnel, delivery methods, sustainability, community benefits, and net zero commitments — meaning contracts are being awarded not just on price, but on broader value.

Businesses should pay close attention to the actual award criteria used in any contract opportunity and tailor their submissions appropriately, to reflect what is actually being asked for. The organisations awarding contracts can only consider the information presented to them in the tender, not any other knowledge they have of the bidders.

Common pitfalls — and how to avoid them
Even experienced businesses can trip up in public procurement — not because they lack capability, but because of misunderstanding or underestimating what’s required.

Here are some of the issues we see most often —
- Misinterpreting the scope of work or pricing too narrowly
- Failing to understand risk tied to warranties, liability and insurance obligations
- Overlooking TUPE obligations when contracts may involve the transfer of staff
- Assuming terms are negotiable, when in reality most public contracts are standardised
- Missing early engagement opportunities that help shape more informed bids
- Underestimating the time and effort involved in submitting a good (and hopefully successful) bid
- Understanding the structure of procurement processes — including frameworks, lots, dynamic purchasing systems, and open tenders — can make a significant difference.

Six things to do to prepare
Whether you’re new to bidding for contracts or looking to grow your involvement, here are some practical steps to build procurement resilience
- Sign up to the Public Contracts Scotland portal (for free)to receive alerts about opportunities in your sector
- Carefully consider the requirements — submit a tender tailored to the specific requirements of the project and avoid submitting general marketing information
- Understand the key contract terms — especially pricing mechanisms, delay penalties, indemnities and termination clauses
- Use available support, e.g. “meet the buyer” events, local chamber sessions, industry events and the Supplier Development Programme
- Be proactive about risk — if a contract feels too risky to price competitively, consider declining to bid
- Consortium/sub-contracting— consider whether you should submit a joint bid in order to increase your chances of success

Conclusion — be informed before you bid
In a competitive and complex procurement landscape, being contract-ready is a real differentiator. Understanding the legal and commercial implications of a tender isn’t about box-ticking — it’s how you protect your margins and deliver confidently.

If your business is bidding — or thinking about it — don’t wait until award to read the contract. Get ahead, get support, and go in with your eyes open.