Advantages Of Open Tendering Construction Essay

Advantages Of Open Tendering Construction Essay

Open tendering is a onestage bidding process where all interested and responding to contract notice will be invited to submit a tender The contract notice states where to obtain tender documents and the last date when tenders will be accepted Open tender is open to public all the interested firms can apply for the contract

Advantages of open tendering

No favourism everyone can apply for the tender

High competition in pricing client will take good prize

New firms can enter into the market

Increased employment opportunities new firms comes

New experience new technology

Helps contractors to grow

Contractors get new client

Disadvantages of open tendering

Selected contractor might not suit the project ex no experience

Inexperienced firms can enter into the market

Unknown firms can enter into the markets

Waste of estimating time

High aggregate cost for tender ex electricity transport

High evaluation time because we have to check all the documents

Unrealistic competition

Arbitrations

202 Selective tendering

A process of competitive tendering for award of the contract for construction whereby the owner selects the constructors who are invited to tender to the exclusion of others as in the process of open tendering It means the client selects the contractor from limited list invitation to tender is made by client to the contractor by a letter

In selective tendering short listing can be done by

Invitation

ICTAD category

Prequalification financial

Post qualification

Negotiation

In selective tendering there can be two stages

One stage selective tendering

Two stage selective tendering

One stage selective tendering

Client advertise for contractor to apply for short listing

Short list the contractors who are considered suitable to do the work approved list is maintained by the client competition

Two stage selective tendering

Single stage for competition double stage for competition plus early start of work at site

Contractors experience practical knowledge is useful at the design stage

First stage

Inviting for tender

Inform about 2 stage tender

Pre select the contractor a simple BOQ

Contractors give proposal for the design

Second stage

Negotiate the rates with the contractor for 2nd time

Advantages of Selective tender

Well known contractor

Good quality

Less aggregate cost for tender

Less evaluation time

Disadvantages of Selective tender

Favourism

Less price competition

Cartel tendering

New firms cannot enter in to the market

Regular updating is necessary

21 Factors which used by client to formulate the select list

211 Information of the company

Information of the company is very important when the clients are giving the tenders Because they want to know how much they can trust that company Reason is some companies are new to the industry some are very old to the Industry When companies are new to industry the risk is more to the client Because when companies are new to the industry most of the companies are not continue their services But when we talking about old companies they are continue their services Because of that clients like to handover there tender to the old companies than the new companies

212 Awards achievements

When the companies are continuing their work some departments presenting awards for best company of the yearetc When companies are offering awards clients like to handover their tender to these companies Because theres no any risk to the client

213 Successfully complete projects

Client giving a contract to a contractor it is essential to know the successfully completed projects Because some companies even not complete a single project even So that is developing their trust on the contractor

214 Work in progress

The work they doing during they applying for the tender is more important for client to handover their tender for the contr

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