PURCHASING PROCEDURES - University of Central Lancashire

6. Ethics
Contracts for the supply of goods and services do not have to be in writing to be
legally enforceable and so great care must be taken during any negotiations to avoid
entering contracts orally.
Negotiation should not be conducted in ways, which put suppliers at a
disadvantage, distort competition or adversely affect trust in the procurement
process. Avoid Dutch auctions and empty threats and ensure suppliers are treated in
an honest, fair and ethical manner whilst retaining confidentiality of their bids.
Exercise of control on all types of information, only partially revealing or choosing
only that which is suitable for your purpose, is a perfectly legitimate tactic. Care
should be taken however to avoid leaving bidders with a misleading impression,
otherwise the failure to supply the information may be held to be a
misrepresentation by omission.
If discussions regarding bid clarification result in an exchange of further
information to one or more of the suppliers it is imperative that the same
information is given to all bidders.
Negotiations must be fully documented so that a clear audit trail is left.
Those suppliers who have been unsuccessful should be given constructive feedback
to assist them in becoming more competitive for future requirements in the interest
of market forces.
For negotiation to be effective both parties must foster a relationship that is based
on trust, fair dealing and respect for each others viewpoint.
7. Post Tender Negotiation
Post Tender Negotiation must only be undertaken with a member of the Purchasing Office.
Purchasing procedures December 2011