OPEN TENDER

Is open to all the suppliers within the country who can supply the
required quantity and quality of materials.such invitation is made by
advertising in newspaper,journals etc.
• Open tendering is the main tendering procedures employed by both
the government and private sector.
• The client advertises the tender offer in the local newspaper giving
detail and key information of the proposed works and inviting
interested contractor to tender
• In the legal sense such tender notices constitute invitation to treat, a
mere request by the employer for suitable contractor to submit their
bids of offers.
• If the pre-requisite to tendering on the form of possession of
necessary registration has been identified in the tender notice, then
the advertisement is directed to only that particular class of public
having the said qualifications.
• In order to reduce number of enquiries,earnest money is
deposited(for private project).
• Although price is very important in the decision on what tender or bid
to accept
• Client does not bind to accept the lowest or any offer.
The advantages and disadvantages of open tender are

• It allows any interested contractor to tender.Therefore it gives opportunity

for an unknown contractor to compete for the work
• The tender list can be long as too many contractors tendering for one job
• Allowing the tender list to be made without bias.client will obtain the
bargain possible.no favouritism in selecting contractors
• Uneconomic use of source
• Ensuring good competition not obliged to accept any offers.
• Public accountability may be questioned if the lowest offer is not accepted
• Traditional method of tendering,familiar to all sector of the engineering
and construction industry.
SINGLE TENDER

Single tender is defined as the invitation is given to only one

firm to render a service by quoting their rates.If the quoted
rates are high,it will be negotiated prior to the agreement of
the contract.
When only one source of supply is available then single tender is addressed to
the selected supplier.

Single tender is not in the public interest to call for tenders

Preferable if the demand is urgent

If no other suitable contractors is available to execute the work

should be recorded as to why single tender is being resorted to in preferance

to limited tenders.
NEGOTIATION TENDER

It is extensively used in the engineering and construction industry

commencing from tendering till despute resolutions. i.e. under the
styles of pre- contract negotiations and post contract negotiation.

usually taken under single contractor and can be upto 3 contractors.

NEGOTIATION PROCESS

• Identification by the employer of a suitable contractor to negotiate

with
• The contractor can be selected either from the employer's own list of
preferances or on the advice of professional team
Negotiations can be applied to the following type of contracts:

• In partnering type of contracts under the so called win - win formula

• Where the employer has a long term business relationship with the
contractor.
• In situations where the parties are in a relationships of holding and
subsidiary companies.
• where the contractor is involved in the financing of the project
ADVANTAGES AND DISADVANTAGES

• Only reputable contractors are invited for negotiation

• The cost work is likely higher than competitive tender

• The contractor can be contribute his expertise during design stage

• Reduces the availability of work for other contractors.

LIMITED TENDER
• In this method ,tender notice is sent to some selected contractors of
respute and no press notice is issued.
• The lowest tender may be called for negotiations.
• The number of contractors in the select list is generally, not too small
to avoid formation of a cartel.
• This method is adopted in private sector in some cases as an
alternative to other methods.
• For government works, this method is restricted to emergency works,
only and the decision is taken at the higher level of hierarchy.
Two stage selective tender
• It is popular in
TERM TENDER
• term tendering normally used on major maintenance projects.
• it may be awarded to a contractor to cover a range of different
buildings in different locations.
• it is often limited to a fixed time scale.
• the type of work is usually specified is usually specified and priced in
a schedule of rates
• the contractor will initially be offered to work to cover a number of
different trades usually on the basis of prices contained in a schedule
prepared by the client.
• where the client supplies the rates for the work. the contractors are
given the option of quoting a percentage additiom or deduction from
these rates depending upon their desire to win the project
• the contractor offering the most advatageous percentageto the client
will then be awarded the contract
• an indication of the amount of the work expected over specified
period of time will assist the contractors in the consideration of the
percentage to be quoted.
SELECTIVE TENDER
SELECTIVE TENDER

• Selective tendering is the one alternatives developed to address the

limitations of the open tendering procedure
• A short list of contractor is drawn up and they are invited to submit
tenders.
• The purpose of elective tendering are to improve the quality of the
bids recieved.
• To make the tendering procedure more manageable and less a
burden on the parties involved.
SELECTIVE TENDER

• Such list may be prepared through recommendation from the client's

professional advise whom have knowledge of the contractors
undertaking the work in the past or advertisement through the
newspaper.
ADVANTAGES

Better quality of workmanship

Since the average quality of workmanship has been raised it is natural to
expect better than quality of workmanship than compared to open
tendering method.
Simplified tender evaluation
The contractors participating are all reputable contractors so the quality of
materials and workmanship will only differ slightly, hence consultants can
just focus on the price of which these services come at.
Shorter tendering process
• Less contractors involved means less time spent on evaluating tender
documents and better management of the tendering process.
Low cost of documentation
• Less tender documents are required to accommodate the
participating contractors this lowers the printing fee.
DISADVANTAGES

High price
• Since the average quality of materials and workmanship is higher than
the open tendering method, the price of the project is bound to rise. This
is also because it is not as competitive as there are lesser contractors
tendering for the job.
Employer incurs resources
• Preparing the list of contractors for pre-qualification requires for the
contractor to make his on list using his own resources and means to do
so