Contract Tendering Flashcards
What types of tendering are there?
1- Selective (single or two stage) 2- Open 3- Negotiation (single or two stage) 4- framework 5 - serial
What is open tendering?
For project over a certain threshold (find a tender UK currently £118,000
It’s a system to make projects accessible to all contractors to bid for
Positives:
-Allows more competitive pricing
-Give equal opportunity to new contractors
-stops favouritism
Negatives:
- Large amount of applications = more admin
What is selective tendering?
Selective tendering is when contractors are selected for there skills, expire next and capacity / avaliblity checks to have the best skills and capacity to undertake the work.
This can be single stage or two stage process.
-Allowed the best contractors you want for the jobs to be invited to tender
Benefits of single selective tendering compared to two stage tendering?
Single stage tendering
- Straight forward
- Tender fee is the construction price
Two stage commonly used when you want early appointment of the contractor.
- benefits are in buildability
- VE options
- price negotiation
Disadvantage:
Don’t have to use the contractor
Contractor May up price
Bargaining power
What is serial tendering
Often used on smaller jobs with similar similar criteria. Similar to a framework except no timeframe is appointed
If a tender comes back with errors what can you do?
Depending on the clauses within the contract however Ian aware in JCT contracts there is two options
Confirm or withdraw
Confirm and amend
Confirm or withdraw is used in public projects. If the contractor chooses to confirm they will be penalised for the margin of there error across the rest of the quantities.
For example if they only put 10 trees instead of 100 - the price of that error say 10% would be added to every other item on there list.
Contacts might confirm and then take this hit if they still this profit / in for a chance of winning
What happens if there is a Discrepancy found in the tender information?
Checked and then replied through a Tender Query known as a TQ/: it is then issues to all tenderers. Normally the QS / CS responsible for the QS tracker