What is tender?

-To invite bids for a project, or to accept a formal offer such

as a takeover bid. Tender usually refers to the process
whereby governments invite bids for large projects that must
be submitted within a finite deadline.
- A tender is more formal and detailed exercise of obtaining
sealed bids for goods where the value is high and the
spesification is detailed or complex or special terms may
apply
What is tendering ?

Tendering is the process of making an offer, bid or proposal, or
expressing interest in response to an invitation or request for tender.
Organizations will seek other businesses to respond to a particular
need, such as the supply of goods and services, and will select an
offer or tender that meets their needs and provides the best value
for money.

Only invited/selected contractors are
allowed to bid the tender. This approach
makes competition among contractors
lesser. Normally, it is applied when
construction contract needs special
expertise and high technology. Those
contractors who filled these requirements
are invited

Where contractors of known reputation are selected
to submit a tender
The cheapest among them is selected to deliver the project
Commonest method of awarding a tender.
Process
A design team select a number of contractors (normally 6) that are
already known to them and invite them to tender for the project
Contractors tenders are usually based on a completed design
Project is awarded to the contractor with the lowest tender.
Advantage Diadvantage

As tenderers are known,
selection of cheapest bid is
not as high a risk as in an
open tender

Limiting the number of
tenderers may exclude new
bidders who may offer more
innovative ideas or slutions

Save time in a deliver tiding
and publishing as in open
tender.
Client some time well
known the contractor this
leads to give some kind of
help by the client more core
needed in selective tender.
Tendering Process


CRITERIA SELECTION
COFORMITY CAPABILITY
INNOVATION PRICE
CONSTRUCTION
PERIOD
TENDER REJECTION
Non-compliance with tender
conditions
details not completed
Tender price too high
tender price is too low
lot of work in progress
insufficient financial capability
unsatisfactory work records