27 Tendering for the private sector Equal concern for value for money 03 The procedures outlined in the preceding chapter reflect the need to demon- strate even-handedness and transparency in the award of public contracts. Because contracting in the private sector is normally free from these consider- ations, clients have more flexibility about the way they manage procurement and let contracts. Though only large corporate clients may choose to emulate the formalities of public sector procurement, most businesses recognize the merits of com- petitive bidding as a means of identifying not just the contractors with the lowest price but those who can provide the best all-round response to their needs. Competitive bidding offers several benefits: a consistent and methodical basis for selecting contractors; access to different ideas, approaches and solutions; an opportunity to learn how well contractors understand the client's requirements; and the chance to assess the quality of the working relationship likely to develop once the contract is awarded. Most important of all, there is probably no more direct or reliable way to learn who represents the best value for money; in this respect the private sector's priorities are not so far removed from the public sector concept of the most economically advantageous tender. Private sector clients are generally less prescriptive about the format and structure of bids, giving contractors more scope to devise an individual approach tailored to the requirements of the contract. They are also more forthcoming about meeting contractors and talking to them about the context of the work. When evaluating bids, business clients ask much the same questions as clients in the public sector. The messages that go out to public sector authorities from the Office of Government Commerce (Chapter 2) are derived essentially from best practice in the private sector. Just as public sector authorities are advised not to think in terms of lowest cost, business clients appreciate that