2.4.4 What is Market Creation?

Home Page  <<  >>

Contracting authorities may need to address a proactive approach to the marketplace when they believe that market interest in a particular project may be low. This may occur if a supplier believes that an existing provider is too strongly entrenched with the contracting authority or if there are simply not enough bidders to respond.

There is then a need to take a “different than normal” approach to stimulate an interest and generate a competitive market response. The contracting authority needs to approach the marketplace and the ways of doing this is through, for example:

Market sounding processes as outlined above
Contacts with, for example: trade unions; supplier organisations such as the Chamber of Commerce & Industry; organisations such as the Cyprus Tourism Organisation; and trade bodies such as the Hotel Association and the Employers and Industrialists Federation.
Running “selling to” events, for example workshops and conferences with the participation of suppliers
The contracting authority website with an interactive discussion page.

The need to create a market is more likely to occur if:

the scale of the project is too large or too small,
the geographical boundaries appear unrealistic,
the project involves too many key stakeholders,
suppliers have concerns about the associated risks/commercial viability,
The requirements are new or specialist.



© 2007 Republic of Cyprus, Treasury of the Republic, Public Procurement Directorate
Home Page | Government Web Portal | Disclaimer | Webmaster