Tendering process

The Tendering Process

• Invitation to tender: This is the first step, where the client invites contractors to submit their bids. The invitation will include detailed information about the project, specifications, and other critical documents required to prepare a tender.

• Competition: The tendering process is inherently competitive. Contractors are vying for the same project and must present their best ideas and prices in order to win the contract.

• Tender documents: These are comprehensive documents detailing all information required for submitting a bid. They may include designs, specifications, schedules, the contract’s form, and any special conditions.

• Preparation of the tender: Contractors must carefully review all documents and conduct all necessary estimations and calculations. Relevant experts may be consulted, including engineers, architects, and quantity surveyors, to provide accurate estimations.

• Submission of the tender: Contractors submit their complete tenders, including all required information such as their proposed price, timeline for completion, and any potential value-added services. The submission must adhere to the guidelines specified in the invitation to tender.

• Evaluation of tenders: The client, often with the help of consultants, will evaluate all bids based on criteria such as price, skill base, financial stability, proposed timescales, and past performance on similar projects.

• Award of contract: After a thorough evaluation and comparison process, the client will award the contract to the most suitable contractor. The client will issue a letter of acceptance, signalling the beginning of the contract. Negotiations may be required if there are any points of disagreement.

• Feedback: Regardless of the outcome, all contractors should be given feedback on their tenders. This gives them the opportunity to refine their future submissions.

• Tender bond: Contractors may be required to submit a tender bond, a type of surety bond, to assure the project owner that they will honour their bid and perform as per the terms mentioned in the contract.

Importance of the Tendering Process

• Cost-effective: Helps in achieving a competitive price for a project by encouraging competition.

• Choice: Provides the project owner with options to select the most capable and suitable contractor.

• Quality: Encourages contractors to tender their best prices and highest quality of work.

• Transparency: Creates a fair and open environment for all participating contractors.

• Financial protection: A tender bond offers financial protection to the project owner in case the winning contractor fails to fulfil the contract’s terms and conditions.