No 2: Value for Money in Construction Procurement (supersedes CUP guidance Nos. 33 (revised) and 41) explains the concepts of accountability, value for money, lowest price and judgement and describes a framework of activities essential for achieving value for money.

Patents relate to the protection of ideas. A patent must be applied for and, if granted, may last for 20 years (subject to renewal every four years); it is granted to an inventor or his/her employer for a product or process which must be new, inventive and be capable of industrial application, for example a machine part or manufacturing process. A patent gives the patentee (holder of the patent) the right to prevent anyone else from making, using, selling or importing any goods or processes which include the patented invention. A patentee may grant licences to make, use or sell goods or processes including the patented invention. The ownership of a patent may also be transferred in which case the new owner acquires the full rights as above. Licensees usually agree to pay a royalty or royalties for the commercial use of the patented invention.

Copyright relates to the protection of works. It exists automatically when the work to which it relates is created, usually without any requirement for registration, in any literary, musical, dramatic or artistic work (including compilations, databases, machine drawings and computer programs) created by their "author". The owner of the copyright, who is in the first instance normally the author, (except where the author of a work is an employee who creates the work in the course of his employment - then the employer is the first owner) has the right to prevent anyone else from copying the work but cannot prevent anyone from creating a similar or identical work without copying. "Copying" includes photocopying and other forms of reproduction, whether in hard copy or electronic form. It is normal practice to include a copyright notice. The ownership of copyright can be transferred and licences can be granted to use or copy copyright materials (e.g. program licences). Copyright generally expires 70 years after the death of the author but duration can differ depending upon the nature of the work (e.g. sound recordings) and whether the author is known or where the work is Crown or Parliamentary copyright.

Registered designs aim to protect the appearance of articles made to the design and where those designs have a novel aesthetic element (e.g. the appearance of a piece of equipment), which is not dictated by the function of the article. Registration must be applied for and gives protection for up to 25 years (renewable every five years). The holder of the registration has the right to prevent anyone else from making, using or selling any goods which include the registered design, and he may grant licences to make, use or sell goods including the registered design. The ownership of a registration may also be transferred in which case the new owner acquires the full rights as above. Royalties are also usually payable by licensees.

Design rights are rights similar to copyrights in that they arise automatically without any requirement for registration and similar to (but not the same as) registered designs, in that they protect the design of an article provided that it is not a feature which enables the article to fit with or match with or form an integral part of another article. The design must be recorded in a design document and must be original. The protection lasts for (a) 15 years from the end of the year in which the design was first recorded or an article was made to the design, which ever happened first, or (b) if articles made to the design are sold or hired out within five years of the end of the year in (a), then at the end of 10 years from the end of the year in which the first sale or hire took place.

The Semiconductor Regulations are grafted onto the design right provisions and protect the design of the layout or pattern of material layout of a semiconductor product. The protection lasts for the same periods of time as design rights subject to the same conditions.

Performers have rights in their performances. They can prevent their live performances from being recorded or broadcast or included in a cable programme service. They have rights in respect of copies of recordings made without their consent.

Trade marks are visual symbols, such as brand names or logos, used to distinguish the goods or services to which they relate from the goods or services of other businesses. Marks must be distinctive and not likely to give rise to deception or confusion amongst the general public. They can be registered or unregistered. Protection of a registered trade mark is maintained provided that the mark is in use and the registration is renewed by payment of renewal fees in the case of some old marks, after 7 years, and in the case of newly registered marks, every 10 years. The holder of the registration has the right to prevent anyone else from using the registered trade mark in association with their goods but can license others to use the trade mark. The ownership of a registered trade mark can also be transferred. Ownership of rights in an unregistered mark may also be transferred but this usually only occurs with a transfer of business goodwill. Rights in the unregistered trade mark are protected by way of an action for passing-off. This requires a person to show that another person is using the mark in relation to similar goods or services so as to pass off his goods or services as those of the owner of the unregistered mark. It is sometimes necessary to indicate that a trade mark is registered whenever it is used.

Confidentiality allows valuable information to be protected from unauthorised disclosure or use. Any person can classify certain types of information which he possesses as confidential. The information must not have become publicly available before it is classified. Confidential information can be disclosed to another person under a confidential relationship, which is either established by a written agreement or created verbally or by circumstances. If a person knowingly receives confidential information from another he must not disclose that information to any third person nor use it without the consent of the provider of the information, except as allowed for under the terms of the confidential relationship established. The original possessor of confidential information has the right to take action against mis-users of the confidential information.

The aim of these notes is to provide guidance on how to use the procurement forms listed below. The notes are not intended to pre-empt or replace any desk instructions issued by units.

Most users will be the purchasers and therefore the originators of the forms in question. If you requisition someone else to carry out particular aspects of the purchasing cycle, that individual will be the originator of the form in those cases.

Use this form to keep a record of potential suppliers of goods and/or services. It may be used to source the market or invite companies to pre-qualify, or in response to enquiries from organisations wishing to supply goods or services.

Complete the boxes marked "Originator", "Our ref." and "Name of Organisation". Send the form to the applicant organisation for completion and return to you.

Organisations already on Government supplier lists need complete only page 1 of the form, before signing it and returning it to you.

Keep the completed form on file.

This form is normally completed by the end-user, after the business case has been approved, to request action by purchasing staff and to provide authority to commit the expenditure against the appropriate budget.

Complete all boxes except the "Purchase Requisition NΊ/Ref.", which purchasing staff may wish to fill in. Enter the address of the purchasing unit to which you will be sending the form in the "Address" box. The completed form must bear an authorised signature for the proposed expenditure and the correct cost centre and ledger heading details.

Keep a copy of this form on file.

This form is sent out to prospective bidders and requests either tenders or quotations for the goods or services described. Tenders should be used for all major purchases over £10,000 to ensure propriety and fair competition through the formal opening of bids by a Tender Opening Board.

Complete all the required information on the front page of the form. Use the "DTI Ref." box to enter a reference for a specific competition, possibly a file number. Give each prospective bidder a unique "ITT No.".

Send one duly completed form to each prospective bidder, together with the specification and the relevant Terms and Conditions of Contract, indicating which on the front page. Where applicable, enclose any documents, patterns or samples, which should also be listed in an accompanying schedule and indicated on the front page.

The bidder should complete the Price and Delivery Schedule, or attach a separate proposal if appropriate, the Statements on Quality Assurance and Size of the Organisation, and the Declaration by Bidder, before returning the entire form to you.

Retain a copy of the front sheet of this form before sending it to the bidder and place it on file.

Keep the completed form on file.

These Standard Terms and Conditions of Contract should be used for all DTI contracts. PF31 relates to the procurement of all services, including consultancy services; PF32 relates to the provision of supplies or goods.

Enclose a copy of the appropriate Terms and Conditions with the Invitation to Tender/Quotation Request (PF30) in the case of competitive tendering. If you are placing an order after having obtained an oral quotation, enclose a copy of the appropriate Terms and Conditions with the relevant Purchase Order.

Use this label to ensure that the originator can easily identify a returned tender, enabling correct procedures for handling tenders to be followed. The label is not required when quotations are being requested.

The unique identifier on the label, in the form of the ITT number, enables identification the bidder without opening the tender. This is particularly important in the case of late tenders that need to be sent back unopened.

Complete all the details, including the return name and address. The "ITT Number" and "DTI Ref" should be the same as those entered on the front page of the PF30.

This form is for the Tender Opening Board to record formally details of tendered bids opened.

Once the Tender Opening Board has been convened and prior to opening the tenders, a member of the Board should record the details of the particular subject or title of the work and each bidder's name and/or ITT number.

Once the tenders have been opened, record the information required in the other columns.

Keep the signed original on a tender opening file. Send a copy with the tenders to the user or tender evaluation board.

Once you have selected a winning tender or quotation you will need to inform the bidder that his offer is being accepted, thereby forming a contract. The offer of contract/purchase order (whether as a PF60 or as an OPC product) is the basis of the contractual agreement between the Department and a supplier.

In the case of written quotations and competitive tendering, it comprises the Department's acceptance of the supplier's offer (tender or quotation), including any post-bid negotiated modification to the contract (specification and/or terms and conditions).

In the case of an oral quotation or under a call-off arrangement, the form may be used as a simple purchase order.

The Form PF60 Purchase Order should be used when a purchase of under £500 in value is not being entered on RAB and is not being undertaken using the GPC card, if the supplier requires a written confirmation of order.

Complete all boxes. The Contact name should be that of the liaison officer whom the contractor should contact on all subsequent matters relating to the contract.

Indicate whether the relevant Terms and Conditions are attached. For contracts requiring additional clauses or involve complex issues, you may wish to consider producing a bespoke contract, in consultation with your Management Unit solicitor, based on this offer of contract and the appropriate general terms and conditions.

Make sure you get acknowledgement that the offer of contract has been received and accepted.

Keep a copy of this form and the acknowledgement on file.

This form notifies the contractor of If changes need to be made to a contract you will need to inform the contractor and seek agreement to those changes. The amendment of contract (whether as a PF70 or as an OPC product) is the basis of the amended contractual agreement between the Department and a supplier.

Complete all boxes.

Give the amendment a unique number and indicate the original contract reference number.

Make sure you get an acknowledgement.

Keep a copy of the form and the acknowledgement on file.

This form advises a consignee that you are despatching goods to him, for example if you need to return goods for repair or replacement.

Complete all boxes.

Send the Form to the consignee separately from the goods and enclose a copy of the form with the goods.

Keep a copy on file.

To be used by staff or others who wish to purchase goods from DTI that are surplus to Departmental requirements.

The originator of this form should be an officer of whichever unit has ownership of the goods in question.

Complete the first four boxes at the top of the page and the first three columns of the form. Send it to the applicant who should complete the rest of the boxes and return the form to you by the time and date indicated.

Keep the returned form on file.

(when completed)