What does open tendering involve
1 direct advertisement inviting contractors to submit tenders
2. Any contractor legally traiding can request to tender
3. Has a deposit to cover tender printing fees and deter unserious contractors
A
Open tendering advantages
1 allows new contractions to be found
2. Keen competition
3. Prevents ring formation
4. Gets lowest price available
5. No favoritism
Disadvantages of open tendering
1 waste of contractors time as only I is chosen
2. Lowest bidder may not be equipped to take on the contract
3. Client chases lowest bid irrespective of contractors reputation
4, poor quality
5. Cost of abortive tendering may be excessive
Single stage tendering recommendations -
- 5 to 8 contractors must be chosen Ct and invited to tender
- Adequate notice must be given so Ct can access if they have the capacity
- A period of 4 weeks for the tender period
- The contract period should be specified
Advantages of single stage tendering
- Client achieves economic price
- Client knows financial commitment before the contract
- Achieves public accountability
- More time ver project design so a better design results
- Cost control methods can be applied
- Less abortive tenders
Disadvantages of single stage tendering
- May exclude suitable contractors
- Ring formation leading to higher vices
- Ct can capitalizes on variation issued by clients during the production phase
- Time is wasted competing tenclevers before invitation
- Ct is excluded from design decisions
Two multi stage tendering circumstances
1 early start and starter construction time
2. Price as well as Ct input is important during design last
3. Client wants to bear the Bigger financial risk
4. Shortage of materials and advance purchases
Advantages of 2 I multi - stage tendering
- Client benefits from Ct and design collaboration
- Early start and finish can be easily planned for
- Design and construction phases overlap
- Competition and negotiation
S. Less contractual claims - Ct can plan for construction phase more easily
- Advance purchasing can be planned
Disadvantages of 2 I multi - stage tendering
- Contractor may alter his position/ price when the bull complexity is known
- Requires more involvement for the clients team
- Hard to appoint legal responsibilities ver design failure
- Ct may impose fou design solution and detailing on design team
What is negotiated tendering selection based on
‘reputation, specialized skill, business relationship and sound financial position
When is nt used
- Requires a certain type of contractor
- Needs to begin immediately
- Security
Advantages of nt
Ditto multi
1. The dents gets the contractor they want
2. Reduces clients cost of tendering.
3. Minimizes tardy delivery
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