8/11/2019 Tendering System

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8/11/2019 Tendering System

2/5

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Advantages Disadvantages

There can be no charge of favouritism as

might be brought where a selected list is

drawn up

Can result in a large number of unsuitable

firms tendering for the work

An opportunity is provided for a capable

firm to submit a tender, which might not be

included on a selected list

Can result in wasted time and effort in the

selection process, and therefore, it can

increase the total cost of tendering

It is a competitive process, therefore the

employer may get the best prices

There is a danger that the lowest or best

tender may be submitted by an

inexperienced contractor

There is no guarantee for the chosen

contractor is sufficiently capable of

financially stable

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Advantages Disadvantages

It tends to reduce time and effort, and

eventually will reduce the cost of tendering

process

The submit prices will be higher since there

being less competition and also due to the

higher caliber of the tenderers

It ensure that only capable and suitablecontractors submit their tenders

Has produced problems of ringing(contractors phone the employer or

consultants in order to get the project)

8/11/2019 Tendering System

3/5

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Advantages Disadvantages

The system is useful where other systems

cannot attract sufficient tenders or realistic

prices, where a special expertise is required

or where project costs can be reduced as a

result of the contractor already being

established on site

The submit prices will be higher since there

being less competition and also due to the

specialist nature of the tenderers

Modest savings in time can be achieved

using this system

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8/11/2019 Tendering System

4/5

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Advantages Disadvantages

Avoids the need to dismantle experienced

project teams after the completion of one

project and allows their accumulated

knowledge and expertise to be utilized on

the subsequent stages

This system can only be used if the

employer has a substantial and an on-going

building program where the individual

projects are sufficiently similar in design

Tender prices are able to be reduced as

contractors are given continuity of work

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Advantages Disadvantages

Saving in time can be achieved, early start Less competition

Contractors early involvement will open

more advices from practical knowledge to

be implemented in the project

The employer can be vulnerable to any

change in the level of contractors pricing

from that contained within the first stage

tender (employer does not obtain the best

price)

8/11/2019 Tendering System

5/5

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Cost Time Quality Performance

Open Tendering A C C CSelective Tendering B B B B

Negotiated Tendering B B A A

Serial Tendering B A A A

Two Stage Tendering C A B A

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