Everything You Need To Know About Selective Tendering
Whenever there’s a conversation about the types of bids in construction, selective tendering will always be mentioned.
Although not as popular as open tendering, this form of bidding undoubtedly has its place for certain projects and is used among plenty of job owners across the USA.
Anyone who has plans to open their job up to the bidding market has to understand the meaning of selective tendering in construction and how it works.
You can find out all about the selective tendering process in this post, from the steps associated with it to its advantages and disadvantages.
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What Is The Definition Of Selective Tendering?
Selective tendering is a more restricted type of bidding method where contractors are selected to bid rather than the job being opened up for anyone to make an offer.
Together, the owner of the project and the bid manager will headhunt the contractors based on their requirements, approach them, and invite them to make a bid. Of course, the contractors don’t have to submit a proposal if they don’t want to.
With a selective tender, the process tends to be more controlled than other forms of bidding because the job owner can manage who bids and who doesn’t. For example, say the project coordinator has an eye on two contractors but can’t choose one to do the job; they would invite both of them to bid and make a decision from there.
The Selective Tender Step By Step Process
Are you curious about the stages of the selective tendering process? Let’s get into it.
- The job owner and bid manager carefully select the potential contractors in accordance with their experience and the project’s requirements.
- The tender is written up, and the chosen contractors are invited to check it out.
- The contractors analyze the tender with the job specifications, and they decide whether to make an offer or not.
- After reviewing the tender, the contractors interested in the project will submit a bid.
- The bids are assessed by the bid manager and job owner together, and they choose the candidate they feel can get the work done how they want it.
- The contract is given to the successful candidate, and then further discussions occur between the two parties before signing it officially.
- The contract is signed, and the work commences.
The Advantages Of Selective Tendering In Construction
There are many advantages for owners and contractors when it comes to selective tendering.
Below, we’ll examine them.
- The job owners have full control of the type of clients they choose to allow to submit a bid for their job.
- The process is more organized. Rather than having to deal with tonnes of bids, there are only a select few that will have to be reviewed.
- There can be huge cost savings for the job owner because of the competitive nature of the process.
- Fewer risks because the invited contractors usually have a high job success rate.
The Disadvantages Of Selective Tendering In Construction
Every tender process in construction comes with its disadvantages, and selective tendering is no exception.
Take a look at them.
- Limited ideas because of the closed aspect of the process.
- It’s harder to choose a candidate for the job owner since all candidates have been selected to apply in advance, so they have already had an interest in them.
What Type Of Job Owners Should Use Selective Tendering?
Some forms of bidding work better for certain types of projects.
Here’s who we recommend to adopt the selective tendering process.
- Complex jobs.
- Sensitive jobs.
- Projects with strict deadlines.
- Long-term projects.
A Final Note On Selective Tendering
That sums up our article on selective tendering. By now, you should understand exactly what it is, why it’s used, and who should use it.
In a nutshell, selective tendering is a great bidding style to implement for projects that are a little more complex, and the owner knows exactly who and what they’re looking for.
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