tendering system
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8/11/2019 Tendering System
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8/11/2019 Tendering System
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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)
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8/11/2019 Tendering System
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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
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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)
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8/11/2019 Tendering System
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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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