What are the two categories for tendering?
Negotiation & cometition
What is open tendering?
Anyone can submit a tender
Offers greater competition, allows for emerging or new businesses to bid for work
What may an invitation to tender include?
- Letter of invitation to tender
- The form of tender
- Preliminaries
- Form of contract, conditions and amendments
- BIM protocols or information requirements
- Tender pricing documents
- Drawings, schedules, specifications
What is contract engrossment?
Process of preparing the final agreed form of contract and its schedules & appendices so it can be executed.
What is contract execution?
Process of signing an agreed contract, after which it becomes contractually binding.
What is the single stage tender process?
1) Preliminary tender invitation
2) Make shortlist of tenderers
3) Invitation to tender
4) Send out tender documents
5) Tenders returned after 4 weeks, by deadline.
How should tender discrepancies be dealt with?
- Architect to be notified
- All tenderers notified of an changes, or further information, replies to questions.
What is the process for opening tenders?
- Opened on a specified date, with client present.
- Late tenders returned unopened.
- Usually accept lowest tender, although not binding.
- Notify successful party.
Why might tender by negotiation be chosen?
- When construction time is limited
- Where specified building techniques are required
- When contractors experience is valuable
- When an established working relationship exists
What is 2 stage tendering?
Stage 1: By competition (appointment of preferred contractor using pre-contact services agreement)
Stage 2: Negotiation between client and contractor.
What are the benefits of 2 stage tendering?
- Allows early appointment of contractor, prior to completion of all the information required to enable them to offer a fixed price.
- Early involvement improves build-ability, cost certainty and integrated project team.
- Potentially quicker start time on site
- Enables client to transfer design risk to contractor.
- Costs of abortive tendering reduced.
What criteria could be used to asses a tender return?
- Price
- Relevant experience
- Understanding requirements
- Past performance
- Technical skills
- Resource availability
- Proposed methodology
- Compliance with invitation to tender
