Why Solution Dialogue Phases Are Worth the Investment in Complex Procurements

Why Solution Dialogue Phases Are Worth the Investment in Complex Procurements

In many complex procurements, organisations invest significant effort upfront defining requirements, issuing detailed tender documentation, and running structured evaluation processes. By the time shortlisted providers are identified, there is often a strong desire to move quickly to final selection.

It is at this point that a Solution Dialogue, Collaborative Design, or Competitive Dialogue phase (as they are variously known as) is sometimes proposed — and just as often questioned.

These phases require meaningful time and attention from senior business, technology, commercial, and delivery stakeholders. Workshops typically run over several days, involve multiple shortlisted providers, and can feel like an extension of an already demanding process.

The hesitation is understandable. The value, however, often lies precisely in what these phases allow organisations to see — and what they prevent from being discovered too late.

The Limits of Written Proposals

Even well-run procurement processes have inherent limitations. Written tender responses, no matter how structured, are an imperfect medium for understanding how a solution will actually work.

They tend to:

  • Smooth over ambiguity rather than resolve it
  • Optimise for compliance rather than clarity
  • Present idealised delivery models
  • Mask differences in interpretation behind similar language

As a result, evaluation teams may be comparing responses that appear comparable on paper but diverge significantly in practice.

Solution Dialogue phases are designed to close this gap.

What a Solution Dialogue Really Does

At its core, a Solution Dialogue phase creates structured, probity-managed interaction between shortlisted providers and the organisation’s business and project stakeholders.

It provides:

  • A forum to clarify functional and non-functional requirements
  • An opportunity to explore assumptions on both sides
  • A way to test how proposed solutions respond to real scenarios
  • A chance to understand delivery approaches, not just outcomes

Importantly, it allows both parties to stress-test alignment before final commitments are made.

From Interpretation to Shared Understanding

One of the most powerful benefits of Solution Dialogue is the shift from interpretation to shared understanding.

During dialogue sessions:

  • Ambiguous requirements can be unpacked and prioritised
  • “Nice-to-have” features can be distinguished from critical outcomes
  • Constraints and dependencies can be discussed openly
  • Misalignment can be identified early, while it is still correctable

This reduces the likelihood that providers price risk based on uncertainty — and that clients accept solutions based on assumptions they did not realise were being made.

Improving the Quality of Refined Offers

The dialogue phase typically culminates in a request for refined offers. These are not simply sharpened versions of the original submissions; they are fundamentally better informed.

Providers are able to:

  • Adjust solution designs based on clearer requirements
  • Remove or reduce risk-based pricing driven by ambiguity
  • Refine delivery models to better fit the organisation’s context
  • Clarify commercial positions and assumptions

For clients, this often results in offers that are:

  • More comparable
  • More realistic
  • More transparent in how price, scope, and risk interact

The benefit is not just lower price, but better value.

Commercial Insight That Cannot Be Gained on Paper

Commercial positions are rarely fully visible in initial tender responses. Providers price conservatively where uncertainty exists, often embedding contingency that may never be called upon.

Dialogue phases allow organisations to:

  • Understand how providers have priced risk
  • Identify which assumptions are driving cost
  • Explore trade-offs between scope, risk, and price
  • Test the flexibility of commercial models

This insight is difficult to obtain through written clarifications alone and can materially influence final outcomes.

Seeing What Working Together Might Actually Look Like

While procurement processes rightly focus on fairness and objectivity, delivery success ultimately depends on how organisations and providers work together.

Dialogue sessions offer a rare opportunity to observe:

  • How providers engage with stakeholders
  • How they respond to challenge and ambiguity
  • How delivery leaders articulate trade-offs
  • How collaborative — or rigid — their approach is

This is not about charisma or salesmanship. It is about gaining confidence that the working relationship required to deliver the program can realistically be sustained.

Addressing the Perceived Cost of Time and Effort

One of the most common objections to Solution Dialogue phases is the time commitment required from internal stakeholders.

This concern is valid. Dialogue phases are demanding.

However, the time invested should be weighed against the time and cost of:

  • Re-negotiating scope after contract signature
  • Managing disputes driven by misalignment
  • Correcting delivery models that were never fit for purpose
  • Recovering from underperforming solutions

In many cases, a few days of intensive engagement can prevent months — or years — of downstream friction.

Reducing the Risk of “Selection by Assumption”

Without dialogue, organisations often select providers based on assumptions:

  • That shared terminology means shared understanding
  • That compliance implies suitability
  • That pricing reflects reality rather than risk hedging

Solution Dialogue reduces reliance on these assumptions by making differences explicit before final selection.

Why Providers Value Dialogue — and Why That Matters

Providers typically welcome Solution Dialogue phases. This is not simply because it gives them access to the client, but because it allows them to:

  • Better understand the client’s priorities
  • Reduce ambiguity in their offers
  • Compete on clarity rather than conjecture
  • Demonstrate how they think, not just what they propose

From a client perspective, this enthusiasm is not a disadvantage. It is an opportunity to extract better insight and better offers — provided the process is well structured and managed.

The Role of Structure and Facilitation

The success of a Solution Dialogue phase depends heavily on how it is designed and facilitated.

Effective dialogue phases are:

  • Clearly scoped with defined objectives
  • Consistent across all shortlisted providers
  • Supported by strong probity and governance
  • Focused on learning, not renegotiation

Independent facilitation and clear protocols help ensure the process remains fair, disciplined, and outcome-focused.

A Strategic Choice, Not a Default Step

Solution Dialogue is not appropriate for every procurement. It is most valuable where:

  • Solutions are complex or configurable
  • Requirements cannot be fully specified upfront
  • Delivery risk is significant
  • Commercial outcomes depend on alignment, not just price

In these contexts, dialogue is not an indulgence. It is a risk management strategy.

Closing Thought

Procurement decisions are often framed as choices between compliant offers. In reality, they are choices between interpretations of need.

Solution Dialogue phases create the space to reconcile those interpretations before commitments are finalised. They demand time, attention, and effort — but they also reduce uncertainty at the point where uncertainty is most expensive.

For organisations undertaking complex procurements, the question is not whether Solution Dialogue is worth the investment, but whether they can afford to make critical decisions without it.

About Arlington

Arlington delivers advanced sourcing, digital transformation, and commercial advisory solutions designed to accelerate performance, reduce risk, and protect long-term business value.

Contact us on 1800 940 391 to learn more about how Arlington can help you achieve improved outcomes.

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