What is Tendering?
The process of inviting bids from interested contractors to complete a package of work.
- All bidders should get the same info at the same time.
- the scope should be easy to understand.
What are the 5 Tender Methods?
- Open competitive
- Selective Competitive
- Negotiation
- Competitive dialogue
- Competitive negotiation
What are the 2 types of tender?
Type 1: Acceptance of tender doesn’t create a binding contract.
Type 2: if the tender is accepted, a legally binding contract is formed.
What is Open Tendering (traditional)?
- Advert is put in the technical press inviting interested contractors to apply for tender documents.
- Includes brief details, location, type, scale and scope of works.
- A statement is included saying the employer isn’t bound to accept the lowest or any tender.
- a deposit is often requested which may or may not be returned on the submission of a proper tender.
What is single stage selective tendering?
- A shortlist of qualified contractors are invited to tender.
- The shortlist may be from a pre approved list or from a pre-qualification process.
What is 2 stage selective tendering?
- Selection of contractor through competitive tendering and the establishment of the level of and basis for pricing for future negotiation.
- Selected contractor provides preconstructions services, prepares pricing documents and and submits a price bid.
What is Negotiation Tendering?
- A special case of selective tendering where only one contractor is invited to tender.
- This contractor may be chosen by negotiation.
- Suited to alternative procurement strategies.
What is Competitive Dialogue Tendering?
- Confidential dialogue is had with a number of contractors to find the optimal way of completing works.
- Contractors then compete on the basis of this solution.
Describe tendering methods in the public sector?
- Open and selective tendering are used most.
- Innovation partnerships for R&D.
- Negotiations only used in exceptional circumstances.
- Competitive dialogue is used when there are complexities, adaptions of current solutions are required, innovation is required or irregular/ unacceptable tenders were submitted in open and selective tendering.
What does the Public Contracts Regulations 2015 state?
That the best value tender must be chosen.
- this may be decided by looking at things like life cycle costing, quality, price, environmental impacts, quality of bid and team, and time taken to complete.
- All tenderers must be debreifed.
- there is a 10 day standstill period before signing of contracts in which losers can ask why they lost.
What is a framework agreement?
- A long term (max 4 years) agreement between a client and at least 3 contractors.
- Allows client to give works as and when needed on pre agreed terms.
What is a joint venture?
A special company set up to tender for a project.
- used on large complex projects such as HS2.
- JV is normally backed up by a parent company.
If the payment mechanism is GMP, which tendering method must be selected?
2 stage selective.
