Advantages Of Start Tendering Engineering Essay

Open tendering is a one-stage bidding process, where all interested and responding to agreement notice will be asked to submit a sensitive. The deal notice states where to obtain tender documents and the last time frame when tenders will be accepted. Open tender is open to general population & all the interested firms can apply for the contract.

Advantages of open up tendering

No favourism (everyone can make an application for the tender)

High competition in costing ( client will take good prize)

New organizations can enter into the market

Increased employment opportunities ( new organizations comes)

New experience (new technology)

Helps contractors to grow

Contractors get new client

Disadvantages of available tendering

Selected contractor might not suit the project (ex: no experience)

Inexperienced businesses can enter the market

Unknown firms can enter into the markets

Waste of estimating time

High aggregate cost for tender (ex: electricity, move)

High evaluation time (because we must check all the documents)

Unrealistic competition


2. 0. 2 Selective tendering

A process of competitive tendering for honor of the agreement for structure whereby the owner selects the constructors who are asked to tender to the exclusion of others, as in the process of open up tendering. It means the client chooses the service provider from limited list & invitation to tender is made by client to the contractor by a notice.

In selective tendering brief listing can be carried out by,


ICTAD category

Prequalification (financial)

Post qualification


In selective tendering there may be two periods,

One stage selective tendering

Two level selective tendering

One level selective tendering

Client advertise for builder to apply for brief listing

Short list the companies who are considered appropriate to do the work & approved list is preserved by your client. (competition)

Two stage selective tendering

Single stage for competition, two times stage for competition plus early start of just work at site.

Contractor's experience/ sensible knowledge is useful at the design stage

First stage

Inviting for tender

Inform about 2 stage tender

Pre choose the contractor (a straightforward BOQ)

Contractors give proposal for the design

Second stage

Negotiate the rates with the service provider for 2nd time

Advantages of Selective tender

Well known contractor

Good quality

Less aggregate cost for tender

Less evaluation time

Disadvantages of Selective tender


Less price competition

Cartel tendering

New organizations cannot type in to the market

Regular upgrading is necessary

2. 1 Factors which utilized by consumer to formulate the select list

2. 1. 1 Information of the company

Information of the business is vital when the customers are offering the tenders. Because they want to know how much they can trust that company. Reason is some companies are new to the industry & some are very old to the Industry. When companies are new to industry, the risk is more to the client. Because when companies are new to the industry almost all of the companies are not continue their services. But when we talking about old companies they are simply continue their services. Due to that clients like to handover there sensitive to the old companies than the new companies.

2. 1. 2 Awards & achievements

When the companies are continuing their work some departments presenting honors for best company of the year. . . etc. When companies are offering awards clients like to handover their sensitive to these companies. Because there's no any risk to your client.

2. 1. 3 Successfully complete projects

Client offering a agreement to a contractor it is essential to know the successfully completed tasks. Because some companies even not complete an individual project even. So that is developing their trust on the builder.

2. 1. 4 Work in progress

The work they doing during they trying to get the tender is more very important to client to handover their tender for the service provider. That is a benchmark for the business to have a tender.

2. 1. 5 ICTAD grading and relevant documentary evidence

In building field ICTAD grading is more important than the other qualifications to get a agreement or a sensitive. ICTAD grading is the one that saying about the business which is good in construction work & that company has facts to establish that, their company is good in work & doing projects. So ICTAD grading is more useful to client to give a sensitive to a company.

2. 1. 6 Financial information

Financial side of the company is very useful for client whether give the tender or not to the company. Because a few of the firms are new to the industry. So their financial area is not more powerful than the other old companies. So the financial information of the company is more helpful for client.

2. 1. 7 Experience as a main contractor

Experience as a main contractor is more needed for the client to build up a relationship or even to give the tender to the service provider. Because to consider the tender for their company all the building companies of the country make an application for it. But some are new & some are very a lot of experience companies. Actually customer not takes any responsibility to hand over the tender to new company. Because they still new to the industry & they are not take any experience as a main contractors, but old companies they can be full fill up with lack of experience as a primary contractor. So client likes to give their tender to an experience company. So experience as a primary contractor is vital bench mark to get a tender from consumer.

2. 2 Typical clients

2. 2. 1 Banks

Analysis of the client internal needs, new product which impact on the internal environment of the client, management of the public, opened, or finished tender for suppliers of required solution, analysis of sensitive, the draft of basic documents in conditions of functional standards of solution and its own pricing structure, origination of the paperwork.

2. 2. 2 Merchant

Analysis of merchant's (consumer) internal needs, goal group specs with full concern of mastercard products, Suggestion of adequate partner for bank card popularity, invitation and management of the general public, opened, or shut down sensitive for suppliers of required solution & analysis of the sensitive.

2. 2. 3 Authorities agency

Analysis of client's inner needs in factor of specifics of open public service, evaluation of impact of new alternatives on interior environment of the client, invitation and management of the general public tender for suppliers of required solution & evaluation of sensitive.

2. 3 Tender process

There are three celebrations of tender process. There are




2. 3. 1Client

A client is a person (specific or company) which carry out a job or a work himself or another person or a business. It means client is anyone having development or building work completed as part of their business. Without a client we can't a construction project. He is the person who approved the job.

Client has some varieties of tasks to do.

Check competence and resources of all appointees.

Allow sufficient time and resources for all stages.

Be satisfied that each designer and service provider appointed has adequate training, knowledge, experience and resources for the task to be performed.

Allow sufficient time for every single stage of the project, from strategy onwards.

Provide a copy of the protection and health plan prepared by the PSDP to every person tendering for the job.

Provide information associated with the health and safety data file to the CDM coordinator.

Before the development work starts consumer have to see if the welfare facilities are on the webpage.

2. 3. 2 Consultant

A consultant can be an individual who offers special knowledge or skills and provide that expertise to a customer for a cost. This means a construction specialist somebody who is chosen to examine and recommend on structural issues. Specialist helps all sort of businesses find an use solution to wide range problems. They usually have many years of experience in engineering field. They are aware of all kind of structure companies. Commonly the work as a consulting businesses but sometimes they work for legal firms & sometimes they are an individual service provider.

Construction consultants do many different things. Some assist companies with administration responsibilities; they make sure everything is running well, and promptly, so that the site owner and managers can concentrate on other business things. A construction specialist may be hired to keep a task working on budget, and cope with any problems that may appear. This may also mean working as an in-between for who owns the website and the building crew.

Another duty which consultant must do is judicial work. This means some occasions when continuing the task it could be failed. Then the consultant must give the reason why the construction process is failed. Sometimes the situation must be small, such as weakness of the labours or sometimes the problem with the framework which design. Another work of a advisor is if the building or the project fails consultant must inform your client why it is failed, what the reasons for failed etc.

2. 3. 3 Contractor

A contractor is a person who in the course or furtherance of a business, provides out or manages construction work. This means in construction he's the man who responsible day to day happening in the website. Actually we can name the builder as general contractor of the site. The contractor is employed by your client. Imagine ones builder got the tender very first thing is he have to visit the website to get better understanding about the job. Secondly the contractor makes the prizing list which called as estimate. A work which contractor has to do is manage the work. It truly is the most important thing in the website. It means he must plan your day today work like what exactly are the risks we must achieve, whenever we going to complete this job, what exactly are the needs of the labours including health & safety, protecting the public while doing the jobetc. as a contractor if he projects the work in time we can keep the relationship between client & service provider.

Another responsibility which builder needs to do is providing information & trains them for the guidelines & restrictions. It's includes site advantages, risks, sit guidelinesetc.

2. 4 Contractual paperwork required for tendering

bid bond

form of tender

construction program

day work schedule

power of attorney

prequalification document

Quality and basic safety proceeding

Copy of ICTAD, NCASL registration

2. 4. 1 Bet bond

On most major development projects, work is awarded through an activity known as bidding. A bet relationship is important showing proof of warrant to the job owner that you can obey with the bid agreement and also that you can attain the work as organized in the contract. A bid bond is a guarantee that you provide to the task owner stating that you are capable to take on and use the project when you are selected during the bidding process. Normally, task owners have no idea if a service provider is financially steady or has the necessary resources to take on a project

2. 4. 2 how bid bond works

During bidding, various contractors estimate what the work will cost to complete. They post this price to the dog owner in the form of a bid. The cheapest bidder will be honored a agreement for the work. If this bidder realizes they made a mistake with their bid, or refuses to sign the contract for just about any reason, the bonding company will ensure the dog owner suffers no financial damage. This results in that the bonding company can pay the dog owner the difference between the lowest and next minimum bids. Sometimes, the bonding company may sue the service provider to recover these costs. The likelihood of lawsuits depends upon the conditions of the connection.

2. 4. 3 Bid connection Requirements

Under the Mille act, which continues to be the standard today, all bidders are required to submit bet bonds on any federal project. Many private businesses have copied this trend to safeguard themselves from risk through the bid process. Getting relationship is vital if you want your company to be competitive in construction filed.

2. 4. 4 Type of tender

A sensitive form is given to a company during the "Invitation to Tender" process. Each Sensitive Form helps the team to collect information about potential suppliers so that they can appoint a number of preferred suppliers to the business enterprise. As each Sensitive Form is released to the suppliers, the progress is monitored in the Tender Register. To save time creating each Tender Form, a Sensitive Template can be used.

2. 4. 5 Construction program

A work method statement, sometimes referred to as a safe work method statement or a safe work technique, is a part of a workplace safe practices plan. It is predominately used in construction to spell it out a document that gives specific instructions on how to safely execute a work related process, or operate a bit of seed or equipment. In many countries it is legislations to possess work method statements, or similar, in location to advice employees and companies on how to execute work related duties safely.

The statement is generally used within a basic safety induction and then referred to as required within a workplace. The construction program envelop the next,



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