Competitive dialogue
Competitive dialogue lets a public buyer develop the solution with shortlisted bidders before final tenders. How it works in the UK and Ireland, and SME advice.
Updated on September 5, 2026
Competitive dialogue is the way a public buyer that cannot specify on its own how to meet a requirement works through possible solutions with shortlisted bidders before inviting final tenders. It is the approach used on complex projects, where the need is clear but the technical, legal or financial answer is not.
How it works
The Procurement Act 2023 no longer lists competitive dialogue as a separate procedure. In England, Wales and Northern Ireland the buyer uses the competitive flexible procedure and designs a dialogue stage inside it, which gives it more freedom than the old rules did. Scotland, under the Public Contracts (Scotland) Regulations 2015, and Ireland, under the European Union (Award of Public Authority Contracts) Regulations 2016, still run competitive dialogue as a named procedure, available where the requirement cannot be met by readily available solutions, where design or innovation is needed, or where the specification cannot be established precisely.
The shape is the same everywhere and has three stages. The buyer publishes a tender notice with an output-based brief, then shortlists participants against published conditions of participation, keeping enough of them to preserve genuine competition. Dialogue follows: confidential one-to-one sessions with each bidder, often in successive rounds that narrow the number of solutions under study. When the buyer is satisfied it has identified a workable solution it closes the dialogue and invites the remaining bidders to submit final tenders, which are scored on the published criteria without further substantive negotiation.
Because of the work involved, buyers frequently pay participation fees, which must be stated in the notice. Above-threshold procedures of this kind apply from £135,018 including VAT for central government and £207,720 for other authorities, and £5,193,000 for works (verified 2026-09-05).
What it means for a bidder
Competitive dialogue is expensive to enter: months of meetings, design work and a team tied up. It is used mostly on large infrastructure, IT and building projects, where SMEs usually take part inside a consortium or as a subcontractor to a lead bidder.
For a specialist firm, joining a bidding consortium is a way to place one component of the solution and shape the design. Check whether a participation fee is offered, and check the intellectual property and confidentiality terms: the ideas you bring must not be passed to your competitors, and buyers are required to keep each bidder's solution confidential.
Example
Bordelac Combined Authority wants to modernise ticketing across its transport network, at an estimated £9,000,000, without knowing whether to back contactless smartcards, open bank-card payment or an app. It runs a competitive dialogue inside a competitive flexible procedure, shortlists three consortia and holds dialogue over six months. An SME specialising in on-vehicle validators, a member of the winning consortium, takes a substantial share of the work.
Frequently asked questions
Can the buyer show my solution to other bidders?
No, not without your agreement. Confidentiality of the solutions and information exchanged during dialogue is protected.
Are participants paid?
Sometimes. The notice or the tender documents state whether a participation fee is available and on what terms.
How does it differ from a procedure with negotiation?
Dialogue is about defining the solution before tenders are submitted. A procedure with negotiation works on tenders that have already been received.