Three main methods are available to Contractors to submit tenders. The method of inviting tenders rests with the Client / Principal Agent and they alone will decide the best method for the particular project.
An advertisement is placed in the newspapers (or via our TenderPoint platform) by the Client / Principal Agent, inviting prospective Contractors to tender on the project. This results in competitive prices and very competitive tendering.
Certain Contractors are invited to tender. These Contractors are selected on their integrity, ability and characteristics before they are invited to tender. It follows that only firms of sufficient standing and experience in that particular type of work will be approached. The lowest tender will generally have to be accepted.
Competitive tendering is achieved and the tender procedure is the same as open tenders except it is not advertised in the press. (The TenderPoint platform allows for a search for Contractors of a certain CIDB Grading and Class withing a particular province and region for selective tender opportunities)
In this type of of tendering procedure, the Client / Principal Agent will approach one Contractor selected on merit to submit a tender for the work. The method used to arrive at the pricing is usually left to the Contractor and can be on the basis of a Bills of Quantities. Often the services of a Quantity Surveyor is used to advise on rates and prices during negotiations.
The 3 best reasons for applying this type of tendering are:
- Time does not allow for normal tendering on open tenders or selective tendering.
- Technicalities around the design and development of details can require the specialist knowledge of the Contractor.
- Where the final cost requires to be established at an early stage of development and the design will be controlled by the costs.
Need to procure projects in either of these methods?