Tendering Process under construction is a process of submitting a proposal to undertake government construction projects. Depending on the language in the bid proposal the construction companies make their bids for submission, and if accepted, a legally enforceable contract is created.
In this article we will be focusing on Traditional procurement method used for government construction projects or contracts . The article will throw some light on types of construction tenders and conventional tender process for government construction projects.
There are five types of Construction Tenders and they are;
Tendering methods are selected based on the type of the construction projects. A detailed description of each of these methods is as follows.
Open- Tendering Method: Under this, the buyer advertises his proposed project, and permits as many contractors as are interested to apply for tender documents.
Selective Tendering method: Under this, the buyer advertises his project and invites contractors to apply, based on a selected list of contractors who will be invited to bid for the project. Contractors applying are given a list of information they should supply about themselves in order to ‘pre-qualify.
Negotiated tendering Method: Under this, the buyer invites a contractor of his choice to submit prices for a project. Usually this is for specialized work or when particular equipment is needed as an extension of existing works, or for further work following a previous contract. Negotiation tendering is extensively used in the engineering and construction industry.
Term Tendering Method: Term tendering normally used on major maintenance projects. It may be awarded to a contractor to cover a range of different buildings in different locations. It is often limited to a fixed time scale, although the needs of the client may often require this to be extended.
Serial Tendering Method: Under this, preparation of bid proposal is based on bill of quantities or schedule work. The rates submitted can then be used to value works over a series of similar projects, often for a fixed period of time following which the tendering procedure may be repeated.
Each of these methods have their advantages and disadvantages and they all can be used successfully to plan design and undertake government construction projects.
The traditional method of construction procurement involves following processes;
A.Tender Advertisement: Also known as tender Notice is being published in the local newspaper. The tender notice will be consisting of basic tender information i.e.
Title of the project
Class of contractors
Date and time to obtain tender document
Fees of tender document
date/ time and/ location for submission of tender document
B. Closing of Tender: the tender document will have the time and date of the tender mention. If the contractors fail to submit their bids before the closing date. It is considered that the contractor has refused to submit the bid.
C. Tender validity Period: At this period, contractors can withdraw back their bids if they are no more interested to fight for the tender. Consultant use this period to make assessment and evaluation each of the offers.
D.Pre- Tender Stage: Once the client has decided to participate, he will appoint a consultant to discuss further on project. The consultant will do its job of advising, managing tender etc. The client and consultant will spend lot of time in brainstorming over time, budget, location and scope of work. This is thought to be the most crucial stage as it will initiate the next step in the project.
E. Tender Evaluation Process: Tenders are usually evaluated against a pre-determined set of criteria. The evaluation of the tenders shall be as soon as possible after the tender opening. A report prepared by the Quantity Surveyor will describe the findings of the said evaluation and it will be supported by tables and graphs. In the end, the Quantity Surveyor will recommend which tenderer, who in his opinion, is the most suitable to undertake to execute the project.
F. Tender Award: Once the contract has been awarded, both the successful and unsuccessful tenderers will be notified. Once the final decision has been made on the tender award, the tender administrator creates the tender results notification which is in letter form, and then sent to all participating contractors.
The tender process is designed in order to ensure that the work is done in a fair way therefore having a sound knowledge of procurement processes prove to be helpful in taking decision for which tenders to bid for taken the other factors into consideration