Details of tendering method in construction

Tendering: Tendering stands for the procedure of making an offer, bid or proposal, or revealing interest in providing respond to an invitation or request for tender. With tendering, interested contractors can send their bids to execute certain packages of construction work.

Organization will look for other businesses to make response to a specific requirement, like the supply of goods and services, and will opt for an offer or tender that fulfill their requirements and offers the best value for money.

Types of tendering:

a. Competitive tendering
Open - Selective

b. Negotiated tendering
Serial - Nominative

Open tender: Open tendering is the primary tendering procedures which are implemented by both the government and private sector. The client publishes the tender offer in the local newspaper as an advertisement. It provides the detail and essential information concerning the projected works as well as invite interested contractor to tender. In legal term such tender recognizes constitute invitation to treat, a simple request made by the employer for appropriate contractor to tender their bids or offers.

If the pre-requisite to tendering on the form of possession of the obligatory registration has been recognized in the tender notice, then the advertisement is conducted to only that specific class of the public with the stated qualifications. With the purpose of decreasing the number of enquirers, earnest money is paid in (for private project).

Unless the receipt of a bone fide tender is chosen then it will be refunded. The price is very crucial in taking the decision on which the tender or bid should be received. The benefits and drawbacks of open tender are described below:

a. It empowers any concerned contractor to submit tender. So, it provides scope for an unfamiliar contractor to bid for the work.
b. The tender list becomes lengthy because too many contractors submit their tender for one job.

c. It facilitates the tender list to be created neutrally. Client will acquire the bargain possible. No favor should be provided for choosing any contractor.
d. Wasteful application of source.
e. Make sure that there is good competition not obliged to accept any offers.
f. The interrogation can be made for public accountability may be questioned if the lowest offer is not accepted.
g. Conventional method of tendering, recognized to all segment of the engineering and construction industry.
h. The reputable and established contractor is not allowed unless they are compelled because of the shortage of water.

Selective tender: The objective of selective tendering is to deal with the constraints of the open tendering process. Under this method, a short list of contractor is made and they are invited to present tenders. The objective of the elective tendering is to make the quality of the received bids better, to make sure that contractors who have required experience and skill get the scope to present the required bids, owning to urgency work involved, for certain reasons of the employer, as for instance security reasons in government projects, Etc. and to make the tendering procedure more simplified and reduce the burden on the associated parties. Such list is made by the suggestions from the Client’s professional adviser having knowledge of the Contractors undertaking the work earlier or advertisement via the newspaper (pre-qualification).

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Details of tendering method in construction