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Selecting a Contractor - Types of

Tendering
Ron Gatepain
constructionsite
Requirements of the Contractor
Has experience with the type of project to be
developed.
Is able to cope with the size of the contract.
Has sufficient financial resources to be able to
carry out the contract.
Has or can get sufficient labour and plant in
order to carry out the work.
Is able to start when required.
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Types of Tendering
Open Tendering
Selective Tendering
Negotiated Tendering
Two Stage Tendering
Serial Tendering
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Open Tendering
Contractors invited to tender for a contract
through advertisements
Can result in a large number of unsuitable
firms tendering for the work
Can result in wasted time and effort in the
selection process
Best prices by firms wanting to establish
themselves
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Selective Tendering
Architects will normally have a list of
contractors who undertake different types of
contracts
Contractors are invited to tender on their
proven record in relation to the type and size
of contract and their reliability
Has in the past produced problems of 'ringing'
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Negotiated Tendering
Usually used to employ contractors of a
specialist nature, or to extend an existing
contract, i.e. where a wing is added to a
building after the building has been started
Cost Reimbursement contract is a variation of
this which can be used when completion time
is more important than cost.
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Two Stage Tendering
Used to bring in a contractor at the design
stage which is useful to advise the architect of
any problems with the design of the building.
The contractor would be selected by
tendering on an approximate BoQ, a bill for a
similar project or a notional bill
Unit rates would be negotiated on the basis of
the original tender
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Serial Tendering
This method tenders are invited from a selected list
on the basis of a typical (notional) bill of quantities.
The contractor chosen normally submits the lowest
price who undertakes to enter into a series of
contracts to carry out the work using the rates in the
notional bill of quantities.
Method reduces the tender costs and normally
results in contractors quoting low rates in order to
obtain a guaranteed programme of work.
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Negotiation takes place to agree:
a price for completing the work,
the form of contract used
an agreed programme for the work
the method by which the work is carried out
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Advantages
Fewer sets of documents are required
Less time in assessing tenders
Performance bond not required
Contractors performance known
Eliminates unscrupulous contractors
Gives contractor a fair chance of winning the
contract