16 February 2006 | Helen Gilbert

Evaluating tenders in the oil and gas industry should become easier if suppliers follow a new framework that standardises the response process.

The Model Invitation to Tender (Model ITT) aims to simplify the process of offering and accepting bids for work between purchasers and suppliers. It should make it simpler for buyers to evaluate tenders and reduce suppliers' costs by saving time and eliminating duplicated information.

Rod Buchan, finance and commercial director for oil and gas industry supplier Aker Kvaerner Offshore Partner, said: "We look forward to the widespread development and adoption of Model ITTs as another significant move to add value and reduce costs."

The model has been developed as part of the updated voluntary Supply Chain Code of Practice. The code was launched by PILOT, an industry and government taskforce that aims to keep the UK sector competitive.

Alistair McGregor, chair of the Supply Chain Management Network, which is part of PILOT, said responding to many different forms of ITT issued by purchasers wasted time. He said Model ITTs make negotiations "easier, faster and cheaper".

"We hope to introduce them for the well services, marine and facilities management sectors over the course of the year," he added.

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