A tender can be defined as an offer to do work or supply goods at a fixed price. The tender process is designed to ensure that the require work for a client or government body is given out to suppliers in a fair way. It gives more contractors a better chance at securing job opportunities aims to create an even playing field.
Here, we have compiled the different types of tendering for better understanding.
- Open tender is the main tendering procedure for both the government and private sector
- Allows anyone to submit a tender to supply the required goods and services
- Offers an equal opportunity to any organisation, and creates the greatest competition among suppliers
- Most common in engineering and construction industry
- In selective tender suppliers are only allowed to submit tender by invitation
- The invited suppliers are usually known for their track record on projects of a certain size, nature and complexity
- Can be especially handy for specialist or complex contracts
- Only drawback is that it can exclude smaller contractors and those who are trying to establish themselves
- Negotiated tender is regularly used in the engineering and construction commencing from tendering until dispute resolutions
- Allows contractors early involvement
- With the contractor part of the project team, cost can be reduce and a clear line of communication can be established from start to finish
Single stage Tender
- Single stage tendering is used when all the information necessary to calculate a realistic price is ready
- An invitation to tender is issued to prospective suppliers, tenders are prepared, and the appropriate supplier is selected
- Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the information necessary
- In stage 1 a limited appointment is agreed upon to allow the work the start
- In stage 2 a fixed price is negotiated for the contract
Learn More from OptiBuild Services
Whether you want to chat to our team about the tendering process or you need reliable and trusted professionals to complete all of your construction quotes and estimates, reach out to us at OptiBuild Services today.