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Method of Contractor Selection

1) Open Tendering
Advantages
 No favourism (everyone can apply for
the tender)

Disadvantages
 Selected contractor might not suit the
project (ex: no experience)

 High competition in pricing (client will  Inexperienced firms can enter into the
take good price)
 New firms can enter into the market
 Increased employment opportunities

market
 Lengthy timeframe for completion of
the procurement action

(new firm comes)
 New experience (new technology)

2) Selective Tendering
Advantages
 Ensures that only capable and
approved firms submit tenders

Disadvantages
 Reduce the potential for innovation
 Cost level of the tenders will be higher

 Fast tendering

due to less competition and also due to

 Costs are known for quick negotiation

higher caliber of the tenderers

 Reduced the cost of tendering

 Its application requires a high level of

(economic use of resources, reduced

familarity and commitment on the part

tender documentation, shorter tender

of employer and contractor

periods, better management of the
tender process, etc.)
 Practical skills and buildability