What is tendering
Tendering is the bidding process for obtaining the necessary resources to carry out the services or works.
There are formal tender procedures used to invite, assess, evaluate and award the tender. These include
Open tendering
Negotiated tendering
Serial tendering
Selected tendering
What are tendering procedures
Tendering procedures are structured methods which govern the way tenders are invited, assessed, governed, submitted.
The following includes the 4 typical tendering procedures:
- Open tendering
- Selective Tendering
- Single Source
- Serial Tendering
What is open tendering
Open tendering is a tender procedure whereby the tender is openly advertised for any contractors to express their interest.
Open tenders are beneficial in the sense of competitiveness however the tender documents should include a tender bond as a requirement from the contractor.
What are the benefits and disadvantages of open tendering
Its highly competitive
However
It may attract unsuitable bidders and can be time consuming
What is a selective tender
A selective tender is a tender procedure whereby inly pre approved on invited contractors are asked to submit bids
What is selective tendering
A selective tender is a tendering procedures whereby only pre approved or invited contractors are asked to submit bids.
Within this tendering procedures contractors are asked to complete a pre qualification questionnaire (PQQ):
- Experience
- Financial Stability
- Health and Safety Record
- Insurance Levels
- Technical Capability
What are benefits and drawbacks of a selected Tender
Advantages
Higher quality bids
Reduces risk of appointing a contractor that poses the risk of bot being able to deliver the works as the PQQ vets the contractors out in terms of skillset and financial stability
Saves time and resources
Disadvantages
Risk of club tendering through collusive behaviour over time
Reduced competition
What is a single contractor (single source) tendering procedure
What is a single contractor (single source) tendering procedure
Single contractor is where the client negotiates directly with once contractor, rather than going out to multiple contractors.
What are the pros and cons of single contractor
Pros
Fast procurement
Strong collaboration
Continuity if contractor is already on site
Cons
No price competition
What is serial tendering a procurement procedure
Serial tendering is a procurement method where a contractor is appointed for a series of similar projects ot pakcages
