FACULTY OF CIVIL ENGINEERING

BSA 2162
LAW OF CONTRACT & ESTIMATION

ASSIGNMENT 1

NAME : LEW SIU KIT

ID NO : TA17086
SECTION : 02
LECTURER : Dr. FARHANA HALIM
DUE DATE : 21 OCTOBER 2017
TYPES OF TENDER

1. Open Tender
Open tender is usually use by government because every contractors and suppliers with
potential and interested with the project are free to submit their tenders. Government will
publish the tender invitations in the government gazette, local press or the internet.

2. Close Tender
Close tender or called limited tender just will invited through known contractor not publicly.
The minimum tender usually to participate in close tender is five tender.

3. Competitive Tender
Competitive tender or called direct negotiation tender is the tender with completed and
priced pre-prepared document that includes all the terms, conditions and specification of the
project. Normally, the council will invites 6 or 7 suppliers only to provide a tender. Tender
enquiry will be issued to all suppliers on the same day. Suppliers will be given period to
submit a tender usually around 4 weeks. All tenders will be return in plain and unmarked
envelopes to the Head of Legal Services for opening by the Procurement team at the same
time.
ADVANTAGES AND DISADVANTAGES OF TENDER

1. Open Tender
Advantages
 Will give chance and opportunity to the contractor especially a new contractor.
 Client will be able to choose the lowest price offered.
 Suitable for a project with medium budget and not too pricey.
Disadvantages
 The duration to process the tender will take a long time and a bit slow.
 Lowest price offered might be affected the project by reason of quality of the work.
 Hard to choose the best contractor with good quality of work.

2. Close Tender
Advantages
 Will be choose fairly and quickly especially for the urgent project.
 Free to choose the best quality work based on the experience and capability of the
contractor that been chosen.
Disadvantages
 Close tender is not so good to apply in government project and will be complain by
public contractor for keeping the tender close and not publicly.
 The quality of workmanship and capability of the chosen contractor will be queried by
others.
 Only just a few contractors will be invited.

3. Competitive Tender
Advantages
 Good quality of workability and capability because of all the contractors has been
compared and the best one will get the project.
 Quality of the assurance also great because of the contractor with the good reputation
and the outcome sure will be good.
Disadvantages
 High cost because usually this tender apply to big project and will choose good quality
and capable contractor only.
 The process of the tender will be long period to choose the best contractor among the
best.
COMPARISON OF OPEN TENDER, CLOSE TENDER AND COMPETITIVE TENDER

COMPARISON
Open Tender Close Tender Competitive Tender
Duration Long time to process Long time to process Short time to process
Cost Low cost Very high cost High cost
Quality Low quality because Good quality because of Great quality because
the contractor will be the contractor skilled and the chosen contractor
chosen publicly capable. is the best among
including new others, surely with a
contractor. good reputation and
experienced.
Type of project Public and private Private sector. Public and private
sector. sector.
Opportunities to Will be invited to Will not be invited Will not be invited
join the tender because it is private because new
new contractors
surely will choose contractor surely will
experienced contractors. lose the competitive
with such a great and
experienced
contractors.
Capacity No limit Minimum = 5 Between 6 to 7