Answer :
a) Tendering is a process used by organizations to invite bids for projects or procurements, where tender submissions are assessed, and a contract is awarded to the preferred bidder. The main methods of tendering include:
(i) Negotiated Tendering: This method involves direct negotiations with one or more selected contractors without inviting competitive bids. It is typically used in projects where the client needs a specific contractor because of their specialized skills or when the project requirements are highly complex or time-sensitive. For example, a high-profile infrastructure project requiring unique expertise in historical restoration may employ negotiated tendering to select a contractor with a proven track record in similar works.
(ii) Open Tendering: Open tendering, also known as competitive bidding, invites all interested contractors to submit tenders for the project. This method fosters transparency and competition, aiming to find the best value for the project. It is commonly applied in public sector projects, such as municipal roadworks, ensuring broad participation and fair pricing.
(iii) Prequalification: Before inviting tenders, potential contractors are assessed and shortlisted based on their capacity, experience, financial stability, and other relevant criteria. This method is particularly useful for large-scale or highly technical projects to ensure all bidders have the necessary qualifications and resources to complete the work. An example would be a government building project requiring contractors who have previously handled similar-scale constructions successfully.
(iv) Serial Tendering: This involves a contractor being invited to tender for the subsequent parts or phases of a project, often after successfully completing a previous phase. It is used when a project is divided into multiple stages, such as the ongoing development of a housing estate, where continuity and consistency are crucial.
(v) Selective Tendering: This method invites selected contractors who possess the necessary skills and resources to tender. The selection is based on a list of pre-vetted contractors. This method ensures quality and efficiency, often used in specialized construction projects, like laboratory facilities, where certain standards and expertise are required.
b) Sources of Information for the Price of Resources in Estimating:
In estimating the cost of a project, having accurate information on the prices of resources is essential. Here are some primary sources:
Supplier and Manufacturer Quotes: Direct quotes from material suppliers and manufacturers provide current and accurate pricing for the resources needed, including any potential discounts or bulk pricing.
Historical Data: Analysis of prices from previous similar projects can offer insights into expected costs, accounting for trends or shifts in the market over time.
Market Surveys: Conducting regular market surveys helps gather up-to-date information on prices in the industry, reflecting fluctuations or changes that might impact the cost of materials.
Industry Publications: Various construction and trade publications provide valuable insights into the pricing trends and estimates for materials, labor, and equipment.
Cost Indexes: National or regional cost indexes, which track changes in the prices of construction materials and labor over time, can provide a standardized reference point for estimating purposes.
