PROFESSIONAL PRACTICE I

Types of Tender
 OPEN TENDER

The system of invitation of tenders by

public advertisements in the most open
public manner possible should be used as
a general rule and must be adopted with
certain exceptions
 OPEN TENDER

Wide publicity may be given to the call of

tenders by:-
• Notices in Govt. Offices,
• Advertisement in vernacular/local news
papers
• Advertisement in National/International
newspapers, if work is very important.
• Uploading on websites.
 PROCESS OF OPEN TENDER
• Client advertises openly in the press or the
trade publications inviting contractors to
apply for the project
• Contractor that is able to undertake the
project would request a tender document
• After receiving the tender, the contractor
may be required to give a deposit and to
ensure a bona fide tender. This is done to
filter out the contractors who are not
interested in submitting a tender.
 ADVANTAGES OF OPEN TENDER
• Keep competition from large number of
applicant.
• Possibility to get competitive price.
• No chance for favourism.
• Provide opportunities to new comers,
unknown contractors to enter to the
market.
 DISADVANTAGES OF OPEN TENDER
• Time and cost taken to review the large
number of applicant.
• Difficult to evaluate and select best one
from wide range of applicant
 LIMITED TENDER

In this process only well reputed contractors

are been negotiated by inviting them to
submit their tenders. Client can contractors
determine the perimeters for negotiation
before commencement of the project. The
maintenance of positive relationship during
the negotiation process in essential.
 Why Client went to Negotiate
• Business relationship
• Contractor, finance project ( client find
difficult to finance then negotiate with the
builders who is willing to finance the
project)
• Continuation of contract
 Why Client went to Negotiate
• Special circumstances ( only one contractor
available to work )
• Special expertise of equipment
• Wish to take advantages of the builder’s
specialized knowledge at the design stage.
• To have quick start
 ADVANTAGES OF LIMITED TENDER
• Expected quality and functions can be
achieve more.
• Speed up the entire project.
• The project objective and definition may be
managed. (builders involvement of the
design stage)
 DISADVANTAGES OF LIMITED TENDER
• Non-competition forces for high tender
sum.
• Less formality make course more contract
administration inquiries.
 SINGLE/SELECTIVE TENDER
Contractor apply to be included on an
approved list maintain by an employing body
often an local authority or statutory body.
These organizations have extensive
knowledge and experience of individual
contractors and regularly review contractor
performs and approval list from such list.
There are able to select contractors most
suited to the contract the number invited will
according to the value of the contract
 SINGLE/SELECTIVE TENDER

• Compile a list of preferred builders for the

project.
• Based on builders established skill.
Reliability and proven competence for the
type of work given.
• Each contractor is bend ask to provide a
tender.
 ADVANTAGES OF SINGLE TENDER
• Cost of tendering is reduced.
• Time consuming for the tender evaluation
is reduced.
• Allow only capable and approved firms are
to be tender.
• Provide limited competition and easy to
screen and select.
 DISADVANTAGES OF SINGLE TENDER

• Let’s competition forces high tender sum.

• Opportunities for collusion among
competitors and mislead the time.
• Mis opportunities. ( new comers)
• Industry complain those who have not
short listed.