Procurement glossary · Qualification and compliance
Consortium bid
A bid submitted by two or more organisations acting together, so that their combined capability, capacity or financial standing meets requirements none of them meets alone. Authorities normally require the members, the lead, and the liability arrangement to be declared at selection.
Also called Joint bid, Bidding consortium.
What it means in practice
A consortium is the standard answer to a requirement that is too large or too broad for one supplier. It is also the arrangement that most often unravels between shortlisting and delivery.
Authorities want to know who is in it, who leads, who is liable for what, and what happens if a member leaves. Those questions are asked at selection and they have to be answered with an agreement that exists, not one that is intended.
The strongest consortium bids are the ones where the members have worked together before and can evidence it. A consortium of strangers assembled for one tender reads as exactly that, because the answers about governance, interfaces and escalation have no worked examples behind them.
Distinguish this from subcontracting. In a consortium the members bid together. With a subcontractor, one supplier bids and names the others as supply chain. The liability, the declarations and often the evaluation differ, so decide which structure you are using before you start writing.
Where suppliers get caught
Agreeing to bid together and leaving the commercial terms until after award. The split of work, the split of margin and the liability position all have to be settled before submission, because they change what you declare and what you price. Consortia that defer those conversations usually have them under pressure, badly.
Common questions
Can two small companies bid together for a large contract?
Yes. A consortium is a recognised structure and authorities expect them. What they require is clarity on membership, leadership and liability, declared at selection and backed by an agreement that actually exists.
What is the difference between a consortium and subcontracting?
In a consortium the members bid jointly and are typically jointly responsible. With subcontracting, one organisation bids as the supplier and names others in its supply chain, retaining responsibility for delivery. The declarations and the liability differ.
Related terms
- Economic and financial standing
- Subcontracting in tenders
- Parent company guarantee
- Selection Questionnaire
If a tender in front of you turns on this, send us the documents and the deadline and we will tell you honestly whether it is worth bidding. Call 020 3668 5488, or read the rest of the UK procurement glossary.