Tendering

Question 1

What does open tendering involve

Answer 1

1 direct advertisement inviting contractors to submit tenders
2. Any contractor legally traiding can request to tender
3. Has a deposit to cover tender printing fees and deter unserious contractors
A

Question 2

Open tendering advantages

Answer 2

1 allows new contractions to be found
2. Keen competition
3. Prevents ring formation
4. Gets lowest price available
5. No favoritism

Question 3

Disadvantages of open tendering

Answer 3

1 waste of contractors time as only I is chosen
2. Lowest bidder may not be equipped to take on the contract
3. Client chases lowest bid irrespective of contractors reputation
4, poor quality
5. Cost of abortive tendering may be excessive

Question 4

Single stage tendering recommendations -

Answer 4

1. 5 to 8 contractors must be chosen Ct and invited to tender
2. Adequate notice must be given so Ct can access if they have the capacity
3. A period of 4 weeks for the tender period
4. The contract period should be specified

Question 5

Advantages of single stage tendering

Answer 5

1. Client achieves economic price
2. Client knows financial commitment before the contract
3. Achieves public accountability
4. More time ver project design so a better design results
5. Cost control methods can be applied
6. Less abortive tenders

Question 6

Disadvantages of single stage tendering

Answer 6

1. May exclude suitable contractors
2. Ring formation leading to higher vices
3. Ct can capitalizes on variation issued by clients during the production phase
4. Time is wasted competing tenclevers before invitation
5. Ct is excluded from design decisions

Question 7

Two multi stage tendering circumstances

Answer 7

1 early start and starter construction time
2. Price as well as Ct input is important during design last
3. Client wants to bear the Bigger financial risk
4. Shortage of materials and advance purchases

Question 8

Advantages of 2 I multi - stage tendering

Answer 8

1. Client benefits from Ct and design collaboration
2. Early start and finish can be easily planned for
3. Design and construction phases overlap
4. Competition and negotiation
   S. Less contractual claims
5. Ct can plan for construction phase more easily
6. Advance purchasing can be planned

Question 9

Disadvantages of 2 I multi - stage tendering

Answer 9

1. Contractor may alter his position/ price when the bull complexity is known
2. Requires more involvement for the clients team
3. Hard to appoint legal responsibilities ver design failure
4. Ct may impose fou design solution and detailing on design team

Question 10

What is negotiated tendering selection based on

Answer 10

‘reputation, specialized skill, business relationship and sound financial position

Question 11

When is nt used

Answer 11

1. Requires a certain type of contractor
2. Needs to begin immediately
3. Security

Question 12

Advantages of nt

Answer 12

Ditto multi
1. The dents gets the contractor they want
2. Reduces clients cost of tendering.
3. Minimizes tardy delivery
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