A Guide to Tendering for Utility Work

Securing the right partners for your construction project is crucial for staying on schedule and within budget. The tendering process for utility connections is a key part of this, but it can often feel complex. Understanding how to navigate it effectively, especially the difference between contestable and non-contestable work, can save you significant time and money.

This guide offers a clear breakdown of the tendering process for utility work. We will explain what it involves, why it matters, and how you can prepare a strong tender. Whether you are new to development or an experienced project manager, these practical steps will help you make informed decisions for your next project.

What is Tendering for Utility Work?

Tendering is the formal process of inviting suppliers to submit a bid, or tender, to provide goods or services for a project. In the context of utility connections, this means asking accredited companies to quote for the installation of electricity, gas, water, and telecoms infrastructure.

The goal is to compare offers based on cost, quality, experience, and timelines to find the best value for your development. A well-managed tendering process ensures transparency and helps you secure a contractor who can meet your project's specific requirements.

Contestable vs. Non-Contestable Work: What’s the Difference?

One of the most important concepts to grasp in utility tendering is the distinction between contestable and non-contestable work. This separation was introduced to create competition in the utilities market, giving developers more choice and control over their projects.

What is Contestable Work?

Contestable work refers to the tasks that can be carried out by an accredited Independent Connections Provider (ICP) or Utility Infrastructure Provider (UIP). You are free to "contest" the market and choose from various approved contractors to complete these elements of the job.

Examples of contestable work often include:

• Digging trenches for pipes and cables on your property.

• Laying ducts, cables, and pipes.

• Backfilling trenches after installation.

• Building electricity substations or gas governor housings.

• Jointing new cables to existing ones (in some cases).

By putting these tasks out to tender, you can compare quotes from multiple providers to find the most competitive price and a schedule that fits your project timeline.

What is Non-Contestable Work?

Non-Contestable work includes tasks that must be completed by the incumbent Distribution Network Operator (DNO) for electricity, the Gas Transporter (GT) for gas, or the local water company. These tasks are not open to competition, primarily for safety, security, and network integrity reasons. Although sometimes you can challenge what is 'non-contestable'

Examples of non-contestable work typically include:

• The final connection of the new infrastructure to the existing utility network.

• Reinforcement or upgrades to the existing network to support the new connection.

• Inspection and approval of the contestable work carried out by your chosen contractor.

  
  

While you cannot tender for non-contestable work, the costs and timelines associated with it are a critical part of your overall utility budget and plan. The local utility provider will give you a quote for these services, which must be factored into your project.

How to Prepare a Strong Tender for Utility Work

A successful tendering process starts with thorough preparation. A detailed and accurate tender pack will attract competitive bids from qualified contractors and reduce the risk of unexpected costs later on.

Here are some practical tips for preparing your tender:

1. Gather Your Essential Documents

Before you can invite bids, you need to provide potential suppliers with all the necessary information. A comprehensive tender pack should include:

• Site Plans: Detailed drawings showing the site layout, property boundaries, and the proposed locations for utility connections (including point of entry/point of connection for the site).

• Load Requirements: Your calculated demand for electricity (kVA), gas (kWh), and water (litres/second). This is essential for designing the new network.

• Utility Records: Maps showing the location of existing utility infrastructure around your site.

• Project Schedule: A clear timeline outlining key construction phases and your required date for the utility connections to be live.

  
  

2. Create a Detailed Scope of Works

Define exactly what you need the contractor to do. Your scope of works should clearly outline all the contestable tasks required for each utility. The more specific you are, the more accurate the quotes will be. This helps avoid ambiguity and potential disputes down the line.

3. Identify and Vet Potential Suppliers

Look for accredited ICPs and UIPs with experience in projects similar to yours. You can find lists of accredited providers through schemes like the National Electricity Registration Scheme (NERS), the Gas Industry Registration Scheme (GIRS), and the Water Industry Registration Scheme (WIRS). Don't just focus on the lowest price; consider their reputation, case studies, and ability to meet your schedule.

The Benefits of Working with a Utility Consultant

Navigating the tendering process, coordinating with multiple providers, and understanding the technical details of contestable work can be demanding. This is where a utility consultant can provide invaluable support.

A specialist utility consultancy acts as an extension of your team, managing the entire process on your behalf. Here’s how they can help:

• Expert Guidance: Consultants have deep knowledge of the utility industry and can help you accurately determine your site’s requirements.

• Stronger Tenders: They can compile a professional and comprehensive tender pack, ensuring you receive accurate and competitive quotes.

• Access to Networks: They have established relationships with a wide range of accredited contractors and can connect you with the best suppliers for your project.

• Project Management: A consultant can manage the entire process, from issuing the tender to coordinating with the DNO and overseeing the final connections, freeing up your time to focus on other aspects of the development.

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By handling the complexities of utility procurement, a consultant can help you avoid common pitfalls, reduce costs, and prevent delays.

Take Control of Your Utility Tendering

Tendering for utility work doesn’t have to be a source of stress. By understanding the difference between contestable and non-contestable work and preparing a thorough tender, you can take control of the process. This approach allows you to secure the best value for your project while ensuring your connections are delivered on time and to the required standard.

If you need support navigating the complexities of utility procurement, our team is here to help. Get in touch with our specialists to see how we can streamline your tendering process and ensure your project runs smoothly from start to finish.