Two stage selective tendering

Two stage selective tendering

The majority of negotiated tenders, as stated above, arise from a desire to involve the builder in the design phase of a project. The Code of Procedure for Two Stage Selective Tendering describes a method which allows the negotiation of a tender with an element of competition.

First, suitable builders are selected in the same manner as for single stage selective tendering, and a list is compiled of those willing to take part in the initial competitive stage. The tender documents sent to the tendering contractors comprise outline sketches of the scheme, a summary of the client's requirements and a notional bill of quantities. The notional bill of quantities is a document containing an outline specification and provisional item descriptions and quantities.

The Code states that tenderers should be given five weeks to prepare their tender. It recommends that the tender is submitted under the same rules as for single stage selective tendering, with the same procedures for notification, errors etc.

Many design teams, however, do not use the preliminary tender based upon the notional bill as the sole method of selection. Instead they will invite each tendering builder to a meeting to discuss the builder's approach to the project. The approach will be discussed in terms of the builder's contribution to the design, the previous experience of such schemes, the personnel to work with the design team and their previous experience. The aim is to ascertain whether the builder and the design team can work well together. It is the combination of these meetings and the preliminary tenders which determines the successful builder.

An agreement will be made with the successful builder regarding the cost of the builder's input before the commencement of the design stage. The design stage is undertaken. Bills of quantities are prepared by the quantity surveyor and where possible priced at the rates in the notional bill. Those items which cannot be priced on this basis are priced by the builder and are subject to negotiation.

Finally following a successful negotiation the builder will make a formal offer to carry out the work for the sum of money negotiated, and this is formally accepted by the client. A standard form of contract is completed.

This method of tendering allows the choice of a builder who is capable and keen to contribute to the design while retaining the important element of competition.

Negotiated Tendering

wher negotiated tendering is adopted the client and a preferred contractor will enter a contract through direct negotiation.
this method is ideal where the work is of a unique nature and the client is confident that there is only one contractor suitable to udertake the work
or where the client has a strong preferance to use a particular contractor

Negotiated tendering does not facilitaye competition in the tender process but the client, to ensure a cometitive price is negititad, can use cetain checks.
the distinct advantage to both the contractor and the client is that tendering costs are minimized. the method is frequently used amongst private sector limit
the use of this method to project of a unique nature.

Selective Tendering.

Selective tendering.
All the construction firm and the construction deportment are main taint a resister of selective contractors. The a bore firm and the deportments wants to do a good job in there construction work then they select name of boor 7 contractors from the register whom be consider suitable for the work. This ensure that reputable firms tender, on need for the engineer to advice the employer against accepting the low priced tender from a contractor whose technical competence doubtful. These sleeted tenders may be insert in the register by adverb tiding in papers or firm and any other technical firms every year all construction firms & departments the list of registered contractors must res cutinized leaving some names add some new names of the con tractors in the registered list.

Advantage:-
1. The employer or the client know the capacity of the con tractor accepting lowest tender.
2. We save time in a diver tiding & publishing as in open tender.
3. All the contractors may be in the same status so they get more profit & the work is also in good quality.

Disadvantages.

1. This type of con tract the client some time well know the contractor this leads to give some kind of help by the client more core needed in selective con tractors.
2. Without res cru tniziny the register selecting names of can tractors lead the client to under go difficult in doing construction work.
3. The tendered rate may be hig when compared with the open tender but when consider the standard & good management it brings advantage to the client in the long run.
4. Some con tractors may coat too higher rates for the con strum action work because they didn’t want to do the set job but for the shake of getting next tender docents from the client.

Open Tendering

An open tendering process is aninvitation to tender by public advertisement. All interested contractors/suppliers are free to submit their   tenders. Notice of tender invitations are published in the Government Gazette and, if necessary, in the local press, on the Internet and in selected overseas journals for the particular trade/product. This method was probably the traditional method until more sophisticated techniques were accepted.  This method of tendering has the benefit of attracting number of tenders and hence the price the obtained are usually very competitive.

The advertisement will carry brief details of the location, type, scale and scope of the proposed works.

Advantage of open tendering
1. Unknown contractor can tender for the work
2. Open tendering secures maximum competition.
3. There is no restrictive list of tenders, which does not allow favoritism – a valid point for local authorities who are publicly accountable.
4. There is no obligation to tender therefore all tenders received will be genuine.

Disadvantage of open tendering
1. Cost of tendering is expensive to the client who must bear the cost of reproducing multiple copies of drawing, bills of quantities, etc.

2. The wrong contractor can be chosen. Little may known about the contractors – their record, experience, standard of workmanship, etc.

3. The lowest tender may not necessarily be a “bargain”. Choosing a low tender may result in.
. poor work – a large number of, or even permanent, defects may occur unless there is close supervision by the client’s agent.
. poor organization – late completion, specialist subcontractors delayed, etc.

4. It is lengthy operation requiring skilled estimating, the cost of which must be recovered on the job by the contractors. The higher the proportion of unsuccessful tenders the higher the cost to be recovered on the job.

5. A contractor may be awarded work for which he has little or no experience and which he be ill-equipped to deal with.

The use of open tendering on public sector contracts is required by law in severaldeveloping countries. But In many countries, private sector clients generally avoid open tendering.