The second thing to consider is whether the bidding should be open to everyone, based on a tender list or based on a background of prequalification. The first to consider is whether the selection criteria should be based on lowest price or best value. There are different things for the client to consider when making a tender. From the respond the client can then choose the most suitable contractor or supplier.
This leads to the lemon problem which attends the problem regarding asymmetry of information.Ĭompetitive tendering is a way to form the project coalition by making a set of codified documents that suppliers can make a bid on to offer their construction services. Procurement is important because of the principal/agent problem where the client has to choose those who are appropriate, competent and trustworthy. The tender process is designed in order to ensure that the work is done in a fair way therefore having a sound knowledge of procurement processes prove to be helpful in taking decision for which tenders to bid for taken the other factors into consideration.This article is about competitive tendering which is the most commonly way for a client to procure construction services. Once the final decision has been made on the tender award, the tender administrator creates the tender results notification which is in letter form, and then sent to all participating contractors. Tender Award: Once the contract has been awarded, both the successful and unsuccessful tenderers will be notified. In the end, the Quantity Surveyor will recommend which tenderer, who in his opinion, is the most suitable to undertake to execute the project. A report prepared by the Quantity Surveyor will describe the findings of the said evaluation and it will be supported by tables and graphs. The evaluation of the tenders shall be as soon as possible after the tender opening.
Tender Evaluation Process: Tenders are usually evaluated against a pre-determined set of criteria.
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