When talk about tendering, it is involved some kind of complicated process and procedure. Before any tendering process can be done, professional team and employer must make sure all necessary tender documents have been prepared, checked and approved. The source of the funding also must have been identified and the project financing put in place. The procedures for subsequent stages should have been established with the express consent of the employer to ensure the tendering process will go smoothly.
What types of tendering that employer want to choose is depends on nature of contract, complexity of the construction, expertise needed and several reasons. But usually for the government project all over the world, is tend to make open tender to ensure the procurement and works to be done in fairly manner without prejudice. As the researcher mention before, open tender is one of the types of tendering that commonly used in this world. Actually there are several types of tender including open tender, selective tender, negotiated tender, serial tender and term tendering.
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If the pre-requisite to tendering on the form of possession of the necessary registration has been identified in the tender notice, then the advertisement is directed to only that particular class of the public having the said qualifications. In order to reduce number of enquiries, earnest money is deposited (for private project). Until the receipt of a bone fide tender selected then it will be returned. Although price is very important in the decision on which tender or bid to accept, it is not the only factor taken into account. Client does not bind to accept the lowest or any offer. The advantages and disadvantages of open tender are stated below:
Selective tendering is the one alternatives developed to address the limitations of the open tendering procedure. In this method, a short list of contractor is drawn up and they are invited to submit tenders. The purpose of the elective tendering are to improve the quality of the bids received, to ensure that contractors with the necessary experience and competence are given the opportunity to submit the necessary bids, due to urgency work involved, for specific reasons of the employer, eg security reasons in government projects. etc. and to make the tendering procedure more manageable and less a burden on the parties involved. Such list may be prepared through recommendation from the Clientâ€™s professional adviser whom have knowledge of the Contractors undertaking the work in the past or advertisement through the newspaper (prequalification). The advantages and disadvantages of the selective tendering are stated below.
In tender notice will mention the time and date of tender closing process. If the contractors fail to submit their bids within specific time and date, it considers the contractors refuse to bid for the tender. At that time also tender validity period is started. At this period, contractors can withdraw back their bids if they are no more interested to fight for the tender. Consultant use this period to make assessment and evaluation each of the offers.
Quantity surveyors usually will handle tender opening process. In order to preserve the integrity of the competitive process, it is imperative that the evaluation of proposals is undertaken objectively, consistently and without bias towards particular suppliers.Â Tenders are usually evaluated against a pre-determined set of criteria. The evaluation of the tenders shall be prepared the soonest possible after the tender opening. A report prepared by the Quantity Surveyor will describe the findings of the said evaluation and it will be supported by tables and graphs. In the end, the Quantity Surveyor will recommend which tenderer, who in his opinion, is the most suitable to undertake to execute the project.
An evaluation team will examine each tender received and make recommendations as to which tender represents best value for money.Â Once the contract has been awarded, both the successful and unsuccessful tenderers will be notified. 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.