The Friend's Firm on the Shortlist
You are a senior estimator at a Grade 9 contractor. A tender for a £6m framework is due in 10 days. Your close friend owns a specialist subcontractor that is one of three firms you have asked to quote for the mechanical package. Your friend's quote arrives 4% lower than the other two. You know the friend's firm has had cash-flow trouble. You are also on the panel that will score the framework bid, and your friend has asked you to 'put in a good word' at the client's pre-tender briefing. No one else at your firm knows you are friends.
1. What conflicts of interest exist and how should each be handled?
Read the worked answer
Conflicts:
- Personal relationship with a subcontractor whose quote you are evaluating - actual or perceived bias in selection.
- Panel role - you will score the framework bid while your friend's firm benefits from a low quote.
- The request to 'put in a good word' at the client briefing - using your position to advantage a connected party.
Handling:
- Declare the friendship to your firm in writing now, before the quote is evaluated.
- Step out of the evaluation of the mechanical package; have a colleague assess the three quotes on merit.
- Declare the relationship to the panel chair and recuse yourself from any scoring affected by the mechanical package.
- Decline the request to advocate for the friend at the briefing; explain why.
Undeclared, even a fair decision is indefensible. Declaration is the control.
2. The friend's quote is 4% lower. Does that change anything? What do you do about the cash-flow concern?
Read the worked answer
The low quote does not change the conflict handling - if anything it increases the need to step back, because a connected party winning on price will be scrutinised.
On the cash-flow concern:
- Do not raise it informally to help or hinder the friend. Treat it as a commercial risk like any other subcontractor.
- Pass the concern to the colleague doing the evaluation so it is assessed through normal financial checks (accounts, references, bond or parent-company support).
- If the firm is a delivery risk, that is a reason to require security, not to exclude or favour it.
Your duty is to the employer and the tender process, not to the friend. Record the declaration, the recusal and the reason.