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Everything You Need To Know About Open Tendering

open tendering

In this day and age, job owners have to choose what way they’re going to open up the bidding for their projects.

Open tendering is arguably the most popular type of construction bid available today, as it allows pretty much any contractor with the experience behind them to apply for the position.

If you’re considering putting your job on the market, you need to know everything about the open tendering process in construction, as it may benefit the final outcome.

Fortunately, here at Mo Engineers, we’re all too familiar with openly bidding for a tender.

We have designed this article for our customers about the open tender process so they know what’s involved before they make their job available to bid.


What Is The Definition Of Open Tendering?

Open tendering refers to a construction bidding process where a project is made public by a job owner so contractors who fit the criteria can bid on it. 

The job owner and bid managers will make the bid package public through all kinds of advertising channels, and the contractors interested in taking it on can submit a bit. 

One requirement usually adopted by the job owner is a Request For Qualification, which basically asks for proof of experience from bidders before they apply to avoid wasting any time.

The open tendering method can be pretty competitive since the job is being made available to anyone with experience, making it difficult for smaller contractors to successfully obtain the job. On the upside, the job owner will be spoiled for choice since this form of bidding tends to attract a huge volume of bids, giving them various options.

The Open Tender Step By Step Process

Unsure what’s involved in the open tender procedure? Let’s show you.

  • The job owner writes up the tender with the job specifications, experience requirements, and budget.
  • The tender is made public across a selection of platforms like newspapers, bidding websites, etc.
  • Bidders will review the open tender and decide whether to submit a bid based on the requirements.
  • All interested parties are usually asked to also submit a Request For Qualification to prove they’re fit to take on the job.
  • After all the bids have been submitted on the deadline date, the job owner will review them and put them through a criteria assessment so only candidates fit for the position will be chosen.
  • The contract is awarded to the right contractor, and it’s then signed.

The Advantages Of Open Tendering In Construction

There’s no hiding that the open tender process in construction has many advantages, hence why it’s so popular.

Take a look at some of them below.

  • It gives the job owner plenty of options since the bidding is open to all parties who meet the requirements.
  • An affordable opportunity for the job owners as less experienced parties tend to bid at a lower price than the more experienced.
  • All laws and regulations are usually followed when using the open tender system.
  • Bias is limited as everything is carried out publically.

The Disadvantages Of Open Tendering In Construction

There’s no perfect method when it comes to bidding for a tender. Open tendering does have its fair share of disadvantages you should be aware of before taking the next step.

Check them out.

  • It can take a lot of time since a substantial amount of bids tend to come in due to the public nature of the type of tendering.
  • Sometimes, open tendering can involve a lot of external resources, which add up to a fair amount of money.

What Type Of Job Owners Should Use Open Tendering?

Parties in all types of industries adopt open tendering, whether it’s government or public.

Here’s who should use it.

  • Small business start-ups
  • Nonprofit organizations
  • Public institutions
  • Government agencies
  • Large corporations

A Final Note On Open Tendering

Now you know what open tendering is, you should have a better idea of whether it’s for your project or not.

This form of bidding is a great option for job owners who are looking to test the waters and see what type of talent is on the market rather than wasting time head-hunting a contractor who might not even be available.

Get Your Free Quote From Mo Engineers Today!

Are you struggling to find a reliable US-based masonry estimation company to assist you? Submit your computer-aided design drawings and receive a free quote from Mo Engineers today through our Contact Us page.

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