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Initial State

The bank requested contractors to support and manage sourcing tasks related to tendering construction for their new branches.


Following a preliminary market research, the first step in this highly complex task was to evaluate the professional and financial pre-qualifications of nearly 50 suppliers. Twenty applicants were given the tender material, which included inter alia, a reference budget template, a cost budget for sample branches and a draft contract. 

After evaluating the proposals applicants were selected and invited to an online auction for further competition. The objective of the auction was to get  quotes for the same sample branches already covered in the tender material, based on a predefined comparative model. The discounts achieved by the auction were then built in the reference budget to determine candidate rankings.


    • Calculations revealed that the project, estimated at billions of forints, resulted in savings near 20 percent 
    • The process of drawing from the loan was simplified through the draft contract attached to the tender invitation
    • Prices became more transparent and comparable
    • Every new branch of the two-seven main contractors with framework contract will compete for a given assignment on the basis of the reference budget items
    • To effectively manage competition, the client also used the auction-based price negotiation method to select the general contractor for individual branches