Tendering

Question 1

What is tendering?

Answer 1

The process of requesting and receiving a price for a specific scope of work. The tendering process helps ensure true competition based on the same selection criteria.

Question 2

What is selective tendering?

Answer 2

• This restricts the number of tenderers by pre-selecting a limited number of contractors to tender for the work.

Question 3

What are the two types of selective tendering?

Answer 3

• Single stage.
• Two stage.

Question 4

What is single stage tendering?

Answer 4

• A structured process of receiving competitive tenders from a number of pre-selected capable
  contractors.
• Contractors are pre-selected based on:-
• Financial standing.
• Qualifications and certifications.
• Previous track record.
• References.
• Organisational structure.
• Capacity and resources.
• Size of work previously undertaken.

Question 5

What are the benefits of single stage tendering?

Answer 5

Cost certainty - Early contractual commitment on price

Risk allocation - avoids cost escalation during second stage and clear statement of risk allocation

Competitive pricing - Full scope of work is priced with other bidders

Overall speed of project - timescales are known and no prolonged second period.

Question 6

What is two stage tendering?

Answer 6

Two-stage procurement is when a main contractor is instructed on a construction project in two stages: firstly, for the pre-construction phase to carry out pre-construction services (often competitively tendered on a limited design basis) and, then, for the construction phase to carry out the main works for the project (often competitively tendered once the design has been sufficiently developed, for example to RIBA Stage 3 or 4).

Question 7

What are the benefits of two staged tendering?

Answer 7

• Early contractor involvement promotes collaboration
• Pre-construction can allow the parties to firm up the price.
• Works will start quicker in the first instance.

Question 8

What is negotiated tender?

Answer 8

Negotiated tendering involves the buyer approaching a single supplier to ask them to deliver the work

Question 9

what are the benefits of negotiated tendering?

Answer 9

The benefit of this route is the speed with which a price can be obtained for the works.

Question 10

What should be included within a tender pack?

Answer 10

Tender Label

Invitation to tender

instruction to tender

Form of tender

Declaration of Non-Collusion

Drawings

Pricing Document

Preliminaries

Pre Construction Information