Selecting A Contractor Types Of Tendering Requirements of

Selecting A Contractor - Types Of Tendering

Requirements of the Contractor • Has experience with the type of project to be developed. • Is able to cope with the size of the contract. • Has sufficient financial resources to be able to carry out the contract. • Has or can get sufficient labour and plant in order to carry out the work. • Is able to start when required.

Types of Tendering • • • Open Tendering Selective Tendering Negotiated Tendering Two Stage Tendering Serial Tendering

Open Tendering • Contractors invited to tender for a contract through advertisements • Can result in a large number of unsuitable firms tendering for the work • Can result in wasted time and effort in the selection process • Best prices by firms wanting to establish themselves

Selective Tendering • Architects will normally have a list of contractors who undertake different types of contracts • Contractors are invited to tender on their proven record in relation to the type and size of contract and their reliability • Has in the past produced problems of 'ringing'

Negotiated Tendering • Usually used to employ contractors of a specialist nature, or to extend an existing contract, i. e. where a wing is added to a building after the building has been started • Cost Reimbursement contract is a variation of this which can be used when completion time is more important than cost.

Two Stage Tendering • Used to bring in a contractor at the design stage which is useful to advise the architect of any problems with the design of the building. • The contractor would be selected by tendering on an approximate Bo. Q, a bill for a similar project or a notional bill • Unit rates would be negotiated on the basis of the original tender

Serial Tendering • This method tenders are invited from a selected list on the basis of a typical (notional) bill of quantities. • The contractor chosen normally submits the lowest price who undertakes to enter into a series of contracts to carry out the work using the rates in the notional bill of quantities. • Method reduces the tender costs and normally results in contractors quoting low rates in order to obtain a guaranteed programme of work.

Negotiation takes place to agree: • • a price for completing the work, the form of contract used an agreed programme for the work the method by which the work is carried out

Advantages • • • Fewer sets of documents are required Less time in assessing tenders Performance bond not required Contractors performance known Eliminates unscrupulous contractors Gives contractor a fair chance of winning the contract