what is single stage tendering

4 Types of Tender and Tendering Processes

• The 4 main types of tenders are:
• Open tender. Open tendering is the main tendering procedures employed by both the government and private sector. ...
• Single-stage and two-stage tender. Single-stage tendering is used when all the information necessary to calculate a realistic price is available when tendering commences.

Full Answer

What is single-stage tendering?

Single-stage tendering, also known as traditional tendering, is when a client issues a tender for the whole project, with all the relevant information provided at the point of issue.

What is the first stage of tender process?

In the first stage, a limited appointment is agreed to allow work to begin and in the second stage a fixed price is negotiated for the contract. Other types of tender include serial tendering, framework tendering and public procurement.

What are the advantages of two-stage tendering?

Two-stage tendering enables the client to transfer design risk to the contractor, but the client inevitably loses leverage as the contractor becomes embedded in the team and competition is less of a threat. However, whilst tender prices for two-stage contracts may initially be higher than single-stage tenders,...

What is an open tender?

Open tendering allows anyone to submit a tender to supply the goods or services required and offers an equal opportunity to any organisation to submit a tender. This type of tender is most common for the engineering and construction industry.

What is single stage bidding?

Single-Stage: One-Envelope Bidding Procedure Bidders submit bids in one envelope containing both the price proposal and the technical proposal. The envelopes are opened in public at the date and time advised in the bidding document. The bids are evaluated.

What is a two stage bidding?

Two-stage tendering involves an initial information stage, facilitating early collaboration between client and contractor. For most projects, and especially for those that are more complex, it is useful to obtain input before there is sufficient information available for the main contract.

What is the best method of tendering?

Open tendering provides the greatest competition among suppliers and has the advantage of creating opportunities for new or emerging suppliers to try to secure work. However, not all those who bid may be suitable for the contract and more time is required to evaluate the tenders.

What is the main benefit of two stage tendering?

The process allows the client to identify a partner with the right experience and that understands their needs. It also enables the client to conclude matters such as levels overheads and profit at the first stage.

What is a 3 bid process?

Q. What is a Three-Bid Process? A. It is a process in which three or more service or contract providers compete for a particular job or contract.

What are the 2 types of bidding?

Bidding performs in two ways online: unique bidding and dynamic bidding.

What are the three types of tenders?

The 4 main types of tenders are:Open tender.Selective tender.Negotiated tender.Single-stage and two-stage tender.

What is the difference between single-stage and two-stage tendering?

The main aim of the single-stage approach is to generate a firm price at the outset through a competitive tendering process, where-as the two-stage approach embraces a collaborative open book approach throughout the project.

What are the two main approaches to tendering?

6 most popular types of tendering methods in the construction industryOpen tendering method. ... Single-stage selective tendering method. ... Two-stage selective tendering method. ... Selective tendering for design and builds method. ... Negotiation method of tendering.Joint ventures.

What are the advantages of single stage tendering?

Provides the client with an early contractual commitment on price. The discipline of a single-stage tender should prevent the project team from proceeding to construction without a complete design. Clients and funders value the agreed contract sum as it gives greater security to an application for loans or grants.

What is multi stage tendering?

CPRs Appendix B: Definitions Multi-stage procurement – involves an initial approach to market followed by one or more subsequent approaches to market (for example, inviting expressions of interest followed by a request for tender).

What is parallel tendering?

The objective of parallel tendering is for early commencement of works contract/works-related consultancy after obtaining funding approval from the Legislative Council Finance Committee, and to reflect the returned tender price in the Approved Project Estimate as far as practicable.

What is the difference between single and two-stage tendering?

The main aim of the single-stage approach is to generate a firm price at the outset through a competitive tendering process, where-as the two-stage approach embraces a collaborative open book approach throughout the project.

What are the two stages in a two bid system of procurement?

Initially under stage I, only pre-qualification bids are called for, opened and evaluated. Under stage II, Initially, only technical bidis opened and evaluated. Later commercial bids are opened for technically acceptable vendors only for the purpose of evaluation and award.

What is the second stage of a construction project?

Once the team or the feasibility test determines whether a project is worth undertaking, then the second step is the project's actual planning. In this phase, the project should be developed alongside its objectives and goals. The planning stage may be the most critical, as it sets the foundation of the entire project.

What is multi stage tendering?

CPRs Appendix B: Definitions Multi-stage procurement – involves an initial approach to market followed by one or more subsequent approaches to market (for example, inviting expressions of interest followed by a request for tender).

What is single stage tendering?

Single-stage tendering, also known as traditional tendering, is when a client issues a tender for the whole project, with all the relevant information provided at the point of issue. The process seeks to ensure that the client is able to secure a competitive price and to this end, the contractor may decide to price aggressively in order to secure the project.

Why are contractors reluctant to engage in single stage tenders?

As the process can take a long time and contractors are increasingly reluctant to engage in single stage tenders due to the bidding risks,

Why is the two stage procurement process important?

The collaborative approach that the two stage procurement process promotes ensures that both the client and contractor can benefit from better outcomes. It also negates the need for value engineering to reduce cost.

What is the initial phase of a construction contract?

This initial phase allows the contractor to submit details under a pre-construction agreement and includes aspects regarding project preliminaries, method statements, design, overheads, and profit.

What is second stage tendering?

Second-stage tendering helps the contractor to understand the design. The use of provisional items as a substitute for a complete design can give the contractor a “second-stage” pricing opportunity.

What is the discipline of a single stage tender?

The discipline of a single-stage tender should prevent the project team from proceeding to construction without a complete design.

Why did the client tender separately a groundworks and basement package?

Owing to the early availability of the site, the client was able to tender separately a groundworks and basement package while the design was completed. Employer’s requirements were issued on the basis of RIBA Stage D, with the curtain wall package also separately tendered to reduce the principal contractor’s risk. The project team was eventually novated to the successful tenderer. The client did not prepare a detailed pricing document, but consented to the competing contractors’ commissioning their own bill of quantities. In this case, quantities risk remained with the winning bidder.

What is a single stage bid?

Single-stage bids are more resource-intensive and, relative to the spend, tenderers have a lower chance of winning a job.

What changes will undermine the certainty achieved with a lump sum tender?

Changes introduced by the client or design team will undermine the certainty achieved with a lump-sum tender.

How long does it take to evaluate a post tender?

Owing to the detail of the submissions, and the need for some design and scope change, the post-tender evaluation took more than three months and two preferred tenderers were asked to stand by their offers beyond the 90-day period. Maintaining contractor interest and competitive pressure during the latter stages of evaluation was a particular challenge that was successfully met.

What is single stage procurement?

Single-stage traditional procurement offers limited scope for a team to develop a shared objective or for a contractor to contribute to design development.

What is single stage tendering?

Single stage tendering requires the potential contractors to attend one interview with the client before one is chosen. This method is usually used when the client is looking for a partnership agreement with a guaranteed price and profit share. Single rate is also good for projects that need specialist attention. It is a good method for the projects such as hospitals where the client can guarantee a max price.

What is open tendering?

Open tendering almost explains itself. A client will put some form of advertisement out for a contractor and all contractors are welcome to reply. The client can then make this decision based on portfolios, references or CV’s of potential contractors. Open tenders usually occur when a service such a road cleaning is needed. The major disadvantage in open tendering is that many contractors who you have know nothing about, considering their costs and reputation too, can apply, meaning you could end up making a bad decision due to minimal knowledge. References are important in open tendering.

How does location affect tender price?

The location of a project can have a massive effect on the tender price. For Example, if a client chose a contractor based in the UK to carry out works in northern Scotland the tender price will be significantly higher. Not only will prices rise due to the fact that the contractor will have to get himself and his men and machinery to northern Scotland and back but sometimes, on long-term projects, the contractor will have to pay for temporary accommodation, including food and drink. Temporary accommodation will cost a lot and can have a great affect on the contractors’ tender price. Not only this but also, if the project is based somewhere like London, where living costs are substantially larger than the rest of the UK, this can have an effect on the tender price.

Why is serial tendering important?

It is good because the contractor can use his knowledge from pricing the first building to then price the following projects too . Not all the projects have the same layout but are similar in material and plant need. This enables the contractor to get a quicker idea of price ranges for the other projects as he already knows what he is expecting. Serial tendering is used when a series of school are being built, it can also work for a series of police stations or hospitals. Serial tendering is also good for housing projects, shop chains and restaurant chains.

How are subcontractors appointed?

The first way is as a domestic subcontractor to the main contractor and the second is a nominated subcontractor by the client. When there is specialist work that needs to be done that a contractor cannot, he will send for a subcontractor who can do the work. Some subcontractors get recommend by the client. There are once again, factors that influence the prices:

What is two stage selection?

This is a good method for specialised needs as the information you gather from the contractors can inform you on whether of not they themselves can carry out the work, which will be cheaper, or whether they have good links with sub contractors that specialise in that area. Two stage selection is good for any building that needs specialist care and also for school and colleges as the client gets significant input from all the potential contractors in the first two stages.

What happens if you don't meet the tendering criteria?

These objects can have an affect on the tender costs, and if they are not met, it means your overall price will rise.

When is single stage tendering used?

Single-stage tendering is used when all the information necessary to calculate a realistic price is available when tendering commences. An invitation to tender is issued to prospective suppliers, tenders are prepared and returned, a preferred tenderer is selected and following negotiations they may be appointed.

What is open tendering?

Open tendering allows anyone to submit a tender to supply the goods or services required and offers an equal opportunity to any organisation to submit a tender. This type of tender is most common for the engineering and construction industry. Open tendering provides the greatest competition among suppliers and has the advantage ...

What is selective tendering?

Selective tender. Selective tendering only allows suppliers to submit tenders by invitation. These suppliers are those who are known by their track record to be suitable for a contract of that size, nature and complexity required. Selective tendering gives clients greater confidence that their requirements will be satisfied.

What is tender in procurement?

A tender is a submission made by a prospective supplier in response to an invitation to tender. It makes an offer for the supply of goods or services. As procurement routes have become more complex, tenders may be sought for a wide range of goods and services (for example, on a construction management contract the works are constructed by ...

Why is open tendering important?

Open tendering provides the greatest competition among suppliers and has the advantage of creating opportunities for new or emerging suppliers to try to secure work. However, not all those who bid may be suitable for the contract and more time is required to evaluate the tenders.

What is a negotiation tender?

Negotiated tenders are extensively used in the engineering and construction industry commencing from tendering till dispute resolutions. Negotiating with a single supplier may be appropriate for highly specialist contracts, or for extending the scope of an existing contract. Costs are reduced and allows early contractor involvement. Since the contractor is part of the project team at a very stage of the project, this results in better communication and information flow.

What is the purpose of a bid and tender process?

A wholly balanced and highly efficient bid and tender management process improves the quality of the supply chain while reducing costs and managing risks.

Why do we have two stage tenders?

The two-stage process can be seen to save authorities time and money, by eliminating the majority of companies at the first hurdle, rather than having to evaluate lengthy tender submissions by companies who are not suitable for the contract.

Why is open procedure better than two stage?

The open procedure is a quicker process for your bid team as you can tackle the bid submission in one go, although it may be lengthier. You can allocate time and resources (and have cost certainty) at just one stage, rather than having the uncertainty of two stages and timescales that can be quite vague.

What is open procedure?

The ‘open procedure’ or ‘one-stage process’ incorporates both the questionnaire and the tender documents at the same time, meaning companies are evaluated across the board at one single stage. Currently, both methods are used within competitive tendering, however the move is towards the one-stage tender process.

What is the questionnaire stage in a restricted procedure?

The questionnaire stage in the restricted procedure will typically ask for all your company information, financial accounts, relevant memberships or accreditations you have in place, and references or case studies. This is usually presented in a pass/fail format and is designed to exclude bidders who are not suitable or who cannot deliver the contract in question.

What are the two types of bidding?

When bidding for contracts there are two main types of procedure: restricted and open, also known as the one- and two-stage processes. We discuss the move in the bidding world to the 'one-stage process' and the pros and cons of both approaches.

Why is the open process more inclusive?

The open procedure is more inclusive, as all bidders get the chance to complete a tender submission, allowing you to put forward your ideas for delivering the contract and really sell your company. In specific sectors, such as the construction industry, this process is more inclusive for contractor selection and construction projects.

Why is a development scheme designed and costed up by the contractor in isolation?

Generally, this is because contractors may not have been consulted on the buildability at the outset meaning ever-changing building costs throughout the project.

Why would a client benefit from early engagement?

Due to the shorter timescales, the client would benefit from contractor early engagement which could result in project costs being reduced through a Value Engineering Process.

How are construction projects procured?

Historically, construction projects have been procured through either the traditional ‘single-stage’ tender process or via the ‘two-stage’ approach. The main aim of the single-stage approach is to generate a firm price at the outset through a competitive tendering process, where-as the two-stage approach embraces a collaborative open book approach throughout the project.

Is single stage procurement a two stage process?

Historically, single-stage procurement was done through an OJEU process, which often resulted in high tendering costs to the contractors. Because of this many have shifted their focus to the more cost effective two-stage schemes over time and are no longer willing to engage in single-stage.

What is single tender?

Single Tender means a tender wherein only one response is received.

What is a mandatory tender event?

Mandatory Tender Event means (a) each failure by the Fund to make a scheduled payment of dividends on a Dividend Payment Date ; (b) the occurrence of a Liquidity Provider Ratings Event (which shall constitute a single Mandatory Tender Event upon the occurrence of such Liquidity Provider Ratings Event, whether or not continuing and whether or not such Liquidity Provider Ratings Event also results in a Mandatory Purchase Event; provided that, a subsequent Liquidity Provider Ratings Event, following restoration of the short-term debt ratings to the requisite level, shall constitute a new Mandatory Tender Event); (c) in the event of a failure by the Fund to pay the Liquidity Provider the applicable fee due in advance under the terms of the VRDP Fee Agreement by seven Business Days prior to the beginning of the month to which such payment relates if the Liquidity Provider (in its sole discretion) thereafter provides written notice to the Fund that such failure to pay such fee constitutes a Mandatory Tender Event; (d) the eighth day prior to the scheduled date of the occurrence of an Extraordinary Corporate Event; (e) the Fund shall have obtained and delivered to the Tender and Paying Agent an Alternate VRDP Purchase Agreement by the fifteenth day prior to the Scheduled Termination Date, Liquidity Provider Ratings Event Termination Date or Related Party Termination Date, as the case may be, of the VRDP Purchase Agreement being replaced; (f) the Fund shall have provided a Notice of Proposed Special Rate Period in accordance with this Statement; or (g) in the event of a breach by the Fund of its Effective Leverage Ratio covenant with the Liquidity Provider in the VRDP Fee Agreement and the failure to cure such breach within 60 days from the date of such breach (which 60-day period would include the Effective Leverage Ratio Cure Period), if the Liquidity Provider (in its sole discretion) thereafter provides written notice to the Fund that the failure to timely cure such breach constitutes a Mandatory Tender Event (subject to the Fund curing such breach prior to the delivery date of such notice from the Liquidity Provider).

What is RFT in procurement?

Request for Tender (RFT means the document (s) containing or referring to the Conditions of Tendering and Contract, the Annexure, Special Conditions of Contract (if any), Northern Territory Procurement Code, Scope of Services, Response Schedules, Drawings or Diagrams (if any) and any other document issued for the purposes of inviting tenders for the Services.

What is an open tender?

Open Tenders means the tenders invited in open and public manner and with adequate notice.

What is limited tendering?

limited tendering means a procurement method whereby the procuring entity contacts a supplier or suppliers of its choice;

What does "tenderer" mean in a contract?

The Tenderer means the individual or firm supplying the Goods under this Contract.

What does "bidder/tenderer" mean?

Bidder/Tenderer means the interested Firm/Company/Supplier/Distributors that may provide or provides the general order items etc. and related services to any of the public/private sector organization under the contract and have registered for the relevant business thereof.

01 / Introduction

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02 / Advantages

Disadvantages

03 / Sources of Problems

04 / Strategies For Successful Competitive Tendering

05 / Case Study I: Single-Stage Tender For A Complex Design-And-Build Contract

06 / Case Study II: Single-Stage Tender For A Complex Design-And-Build Contract