NHBC there was some legislation that meant that for them to appoint a third party to carry out works they had to send the works out to tender and obtain at least three quotes to prove that they were mitigating their loss is this the case?
No I do not think there is any absolute legal requirement to obtain 3 quotes. What you would need to do is show that reasonable steps have been taken to mitigate, ie get a fair price. That is really what the “3 quotes” is summarising. It is evidence that you are paying a fair or market price. However, as we all know, the cheapest quote is not always the cheapest out turn cost.
No legislation requires this. It’s a policy of NHBC (and in line with other orgs too, whether public or private). It’s all about showing hat you have done a decent job of benchmarking in the market. It also goes to legal and risk compliance i.e. not giving a job to your mate, or taking a personal cut (corruption etc). If you are taking works off one contractor and giving to another the losing party may challenge it on a variety of fronts and one is that you haven’t “mitigated” it properly i.e. got a fair price. To “prove” you have, you have then draw on the 3 or more quotes you have obtained.