Answer :
Final answer:
In construction, tendering is a formal bidding process where contractors submit detailed plans and pricing. Select Tender includes invitation-only bids from select contractors, leading to potentially higher quality and efficient bid evaluation. Open Tender, contrastingly, allows all qualified contractors to bid, promoting competitiveness and fairness.
Explanation:
Construction Tender & Bidding Procedures
In the construction industry, tendering is the process by which bids are invited from interested contractors to carry out specific packages of construction work. Municipalities and other bodies usually require that several contractors are given the opportunity to tender to ensure fairness, prevent corruption, and achieve the best value for money. A tender document details a contractor’s proposed plan to complete a project along with the associated costs.
Bidding typically takes place in one of two ways: open tender and select tender. Open tendering allows any interested contractor to submit a bid, while select tendering involves bids from only those who have been invited. Aspects such as specifications and constraints are described in the tender notice, guiding contractors in developing their bids.
Select Tender offers advantages such as a reduced number of bids to assess, which can save time and resources. It also allows the entity soliciting the bids to choose contractors with proven track records, which may enhance the quality of the submissions. Open Tender, on the other hand, is more inclusive, allowing for a wider range of proposals and potential for uncovering more competitive pricing.
Advantages of Select Tender
Invitation only to contractors with known capabilities and reputations
Efficiency in bid evaluation due to fewer bids
Potential for higher quality submissions
Advantages of Open Tender
Inclusiveness allows any qualified contractor to bid
May result in more competitive pricing
Less likelihood of favoritism and corruption
