Tender processes for construction contracts - Revision history

Designing Buildings at 08:00, 11 January 2023

2023-01-11T08:00:38Z

← Older revision		Revision as of 08:00, 11 January 2023
Line 1:		Line 1:
−	= ~~Introduction~~ =	+	[[File:PurchaseOrderSticky.jpg]]
		+
		+	= What is the tender process? =

	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.		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.

−	In construction, the main tender process is generally for the selection of the contractor that will construct the works. However, as procurement routes have become more complex, so tenders may be sought for a wide range of goods and services (for example, on a construction management contract the works are constructed by a number of different trade contractors each contracted to the client) and contractors may take on additional functions such as design and management.	+	In construction, the main tender process is generally the process adopted for the selection and appointment of the main contractor that will construct the works. However, as procurement routes have become more complex, so tenders may now be sought for a wide range of goods and services, for example, on a construction management contract the works are constructed by a number of different trade contractors each contracted to the client, and contractors may take on additional functions such as design and management. In addition, clients may procure certain goods and services themselves, rather than through the contractor, and the contractor themselves will procure goods and services themselves through tender processes.

−	There is also an increasing tendency for suppliers to be aggregated into single contracts, for example, 'integrated supply teams' on public projects may include; the main contractor, designers, sub-contractors, suppliers, facilities managers, and so on.	+	There is also an increasing tendency for suppliers to be aggregated into single contracts, for example, 'integrated supply teams' on public projects that may include; the main contractor, designers, sub-contractors, suppliers, facilities managers, and so on.

−	~~Irrespective of the nature of the goods or services that are being sought, the process for securing tenders may take a number of different basic forms~~:	+	For more information see: Supply chain.

−	= Open tendering =	+	= Types of tender process =
		+
		+	Irrespective of the nature of the goods or services that are being sought, the process for securing tenders will generally take one of a number of different basic forms, described below.
		+
		+	== Open tendering ==

	Open tendering allows anyone to submit a tender to supply the goods or services that are required. Generally, an advert will be placed giving notice that the contract is being tendered, and offering an equal opportunity to any organisation to submit a tender.		Open tendering allows anyone to submit a tender to supply the goods or services that are required. Generally, an advert will be placed giving notice that the contract is being tendered, and offering an equal opportunity to any organisation to submit a tender.

−	On larger projects, there may then be a pre-qualification process that produces a short-list of suitable suppliers who will be invited to prepare tenders. This sort of pre-qualification process is not the same as selective tendering (see below).	+	On larger projects, there may then be a pre-qualification process that produces a short-list of suitable suppliers who will then be invited to prepare tenders. This sort of pre-qualification process is not the same as selective tendering (see below).

	Open tendering has been criticised for attracting tenders / expressions of interest from large numbers of suppliers, some of whom may be entirely unsuitable for the contract and as a result it can waste a great deal of time, effort and money. However, open tendering offers the greatest competition and has the advantage of allowing new or emerging suppliers to try to secure work.		Open tendering has been criticised for attracting tenders / expressions of interest from large numbers of suppliers, some of whom may be entirely unsuitable for the contract and as a result it can waste a great deal of time, effort and money. However, open tendering offers the greatest competition and has the advantage of allowing new or emerging suppliers to try to secure work.
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	For a more detailed description of the procedures for open tendering, see Tender.		For a more detailed description of the procedures for open tendering, see Tender.

−	= Selective tendering =	+	== Selective tendering ==

	Selective tendering only allows suppliers to submit tenders by invitation. A pre-selected list of possible suppliers is prepared that are known by their track record to be suitable for a contract of the size, nature and complexity required. Consultants or experienced clients may maintain ‘approved’ lists of prospective suppliers and then regularly review performance to assess whether suppliers should remain on the list.		Selective tendering only allows suppliers to submit tenders by invitation. A pre-selected list of possible suppliers is prepared that are known by their track record to be suitable for a contract of the size, nature and complexity required. Consultants or experienced clients may maintain ‘approved’ lists of prospective suppliers and then regularly review performance to assess whether suppliers should remain on the list.
Line 27:		Line 33:
	See selective tendering for more information.		See selective tendering for more information.

−	= Negotiated tendering =	+	== Negotiated tendering ==

−	Negotiating with a single supplier may be appropriate for highly specialist contracts, or for extending the scope of an existing contract. It can reduce the costs of tendering and allow early contractor involvement, but the competitive element is reduced, and unless the structure of the negotiation is clearly set out there is the potential for an adversarial atmosphere to develop, even before the contract has been awarded.	+	Negotiating tendering involves negotiating with a single supplier, which may be appropriate for highly specialist contracts, or for extending the scope of an existing contract. It can reduce the costs of tendering and allow early contractor involvement, but the competitive element is reduced, and unless the structure of the negotiation is clearly set out there is the potential for an adversarial atmosphere to develop, even before the contract has been awarded.

	See Negotiated tendering for more information.		See Negotiated tendering for more information.

−	= Serial tendering =	+	== Serial tendering ==

	Serial tendering involves the preparation of tenders based on a typical or notional bill of quantities or schedule of works. The rates submitted can then be used to value works over a series of similar projects, often for a fixed period of time following which the tendering procedure may be repeated.		Serial tendering involves the preparation of tenders based on a typical or notional bill of quantities or schedule of works. The rates submitted can then be used to value works over a series of similar projects, often for a fixed period of time following which the tendering procedure may be repeated.
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	See also Serial tendering and Measured term contract.		See also Serial tendering and Measured term contract.

−	= Framework tendering =	+	== Framework tendering ==

	Clients that are continuously commissioning work might reduce timescales, learning curves and other risks by using framework agreements. Such arrangements allow the client to invite tenders from suppliers of goods and services to be carried out over a period of time on a [[Call-off_contract\|call-off basis]] as and when required.		Clients that are continuously commissioning work might reduce timescales, learning curves and other risks by using framework agreements. Such arrangements allow the client to invite tenders from suppliers of goods and services to be carried out over a period of time on a [[Call-off_contract\|call-off basis]] as and when required.
Line 47:		Line 53:
	For more information, see Call-off contract.		For more information, see Call-off contract.

−	Framework tender documents are likely to include a request for a ~~schedules~~ of rates and time charges and a breakdown of resources and overheads to be applied (including any proposed subcontractor or sub-consultant details).	+	Framework tender documents are likely to include a request for a schedule of rates and time charges and a breakdown of resources and overheads to be applied (including any proposed subcontractor or sub-consultant details).

	One or more suppliers are then selected and appointed. When specific projects arise the client is then able to simply select a suitable framework supplier and instruct them to start work. Where there is more than one suitable supplier on the framework, the client may introduce a secondary selection process to assess which supplier is likely to offer best value for a specific project. The advantage of this process to the client is that they are able instigate a selection procedure for individual projects without having to undertake a time-consuming pre-qualification process. This should also reduced tender costs.		One or more suppliers are then selected and appointed. When specific projects arise the client is then able to simply select a suitable framework supplier and instruct them to start work. Where there is more than one suitable supplier on the framework, the client may introduce a secondary selection process to assess which supplier is likely to offer best value for a specific project. The advantage of this process to the client is that they are able instigate a selection procedure for individual projects without having to undertake a time-consuming pre-qualification process. This should also reduced tender costs.
		+
		+	However, framework arrangements can result in anti-competitive behaviour in the long run as relationships between the client and supplier become too 'cozy', and they can exclude innovation and smaller companies.

	For more information, see Framework contract.		For more information, see Framework contract.

−	= [[Single-stage_tender\|Single-stage]] and two-stage tendering =	+	== [[Single-stage_tender\|Single-stage]] and two-stage tendering ==

	[[Single-stage_tender\|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.		[[Single-stage_tender\|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.
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	For more information, see Two-stage tendering.		For more information, see Two-stage tendering.

−	= Public procurement =	+	== Public procurement ==

−	Public projects or publicly-subsidised projects may be subject to ~~OJEU~~ procurement procedures, enacted ~~in the UK~~ by The Public Contracts Regulations. The regulations set out rules requiring that contracts must be advertised in ~~the Official Journal of the EU (OJEU)~~. This is of particular importance because the time taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for the selection of contractors.	+	Public projects or publicly-subsidised projects may be subject to public procurement procedures, enacted by The Public Contracts Regulations. The regulations set out rules requiring that contracts must be advertised in advance. This is of particular importance because the time taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for the selection of contractors.

	For more information, see Public procurement.		For more information, see Public procurement.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* E-auction.		* E-auction.
Line 86:		Line 94:
	* Tender evaluation		* Tender evaluation
	* Pre-qualification questionnaire PQQ for construction contracts		* Pre-qualification questionnaire PQQ for construction contracts
−	* OJEU procurement procedures
	* Form of tender		* Form of tender
	* Serial tendering		* Serial tendering
	* Public procurement		* Public procurement
	* Framework contract		* Framework contract
−	* Appointing consultants for building design and construction
−	* Construction contract
−	* Call-off contract
−	* Computers in construction tendering
−	* Suppliers for design and construction
−	* Due diligence when selecting contractors or subcontractors

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 16:25, 30 September 2021

2021-09-30T16:25:25Z

← Older revision		Revision as of 16:25, 30 September 2021
Line 73:		Line 73:
	* E-auction.		* E-auction.
	* Exclusion grounds under the Single Procurement Document (Scotland).		* Exclusion grounds under the Single Procurement Document (Scotland).
		+	* Restricted procedure under the Single Procurement Document (Scotland).
	* Typical tender process for construction projects		* Typical tender process for construction projects
	* Tender documentation for construction projects		* Tender documentation for construction projects

Editor at 18:24, 28 September 2021

2021-09-28T18:24:20Z

← Older revision		Revision as of 18:24, 28 September 2021
Line 72:		Line 72:

	* E-auction.		* E-auction.
		+	* Exclusion grounds under the Single Procurement Document (Scotland).
	* Typical tender process for construction projects		* Typical tender process for construction projects
	* Tender documentation for construction projects		* Tender documentation for construction projects

Designing Buildings at 10:31, 20 September 2021

2021-09-20T10:31:14Z

← Older revision		Revision as of 10:31, 20 September 2021
Line 68:		Line 68:

	For more information, see Public procurement.		For more information, see Public procurement.
−
−	~~{{:Deltek_CTA_setup}}~~

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 10:06, 20 July 2021

2021-07-20T10:06:58Z

← Older revision		Revision as of 10:06, 20 July 2021
Line 68:		Line 68:

	For more information, see Public procurement.		For more information, see Public procurement.
		+
		+	{{:Deltek_CTA_setup}}

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Editor: Reverted edits by 95.146.126.184 (talk) to last revision by Designing Buildings

2021-02-08T09:45:05Z

Reverted edits by 95.146.126.184 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 09:45, 8 February 2021
Line 65:		Line 65:
	= Public procurement =		= Public procurement =

−	Public projects or publicly-subsidised projects may be subject to ~~[https://www.executivecompass.co.uk/blog/bid-management/ojeu-procurement/~~ OJEU procurement procedures], enacted in the UK by The Public Contracts Regulations. The regulations set out rules requiring that contracts must be advertised in the Official Journal of the EU (OJEU). This is of particular importance because the time taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for the selection of contractors.	+	Public projects or publicly-subsidised projects may be subject to OJEU procurement procedures, enacted in the UK by The Public Contracts Regulations. The regulations set out rules requiring that contracts must be advertised in the Official Journal of the EU (OJEU). This is of particular importance because the time taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for the selection of contractors.

	For more information, see Public procurement.		For more information, see Public procurement.
Line 96:		Line 96:
	* Due diligence when selecting contractors or subcontractors		* Due diligence when selecting contractors or subcontractors

−	[[Category:DCN_Definition]] [[Category:DCN_Guidance~~]] [[Category:Education~~]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

95.146.126.184 at 09:26, 8 February 2021

2021-02-08T09:26:46Z

← Older revision		Revision as of 09:26, 8 February 2021
Line 65:		Line 65:
	= Public procurement =		= Public procurement =

−	Public projects or publicly-subsidised projects may be subject to OJEU procurement procedures, enacted in the UK by The Public Contracts Regulations. The regulations set out rules requiring that contracts must be advertised in the Official Journal of the EU (OJEU). This is of particular importance because the time taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for the selection of contractors.	+	Public projects or publicly-subsidised projects may be subject to [https://www.executivecompass.co.uk/blog/bid-management/ojeu-procurement/ OJEU procurement procedures], enacted in the UK by The Public Contracts Regulations. The regulations set out rules requiring that contracts must be advertised in the Official Journal of the EU (OJEU). This is of particular importance because the time taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for the selection of contractors.

	For more information, see Public procurement.		For more information, see Public procurement.
Line 96:		Line 96:
	* Due diligence when selecting contractors or subcontractors		* Due diligence when selecting contractors or subcontractors

−	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Education]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings: Reverted edits by 104.244.225.110 (talk) to last revision by 82.132.218.236

2020-11-23T07:03:40Z

Reverted edits by 104.244.225.110 (talk) to last revision by 82.132.218.236

← Older revision		Revision as of 07:03, 23 November 2020
Line 1:		Line 1:
−	= =	+	= Introduction =
		+
		+	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.
		+
		+	In construction, the main tender process is generally for the selection of the contractor that will construct the works. However, as procurement routes have become more complex, so tenders may be sought for a wide range of goods and services (for example, on a construction management contract the works are constructed by a number of different trade contractors each contracted to the client) and contractors may take on additional functions such as design and management.
		+
		+	There is also an increasing tendency for suppliers to be aggregated into single contracts, for example, 'integrated supply teams' on public projects may include; the main contractor, designers, sub-contractors, suppliers, facilities managers, and so on.
		+
		+	Irrespective of the nature of the goods or services that are being sought, the process for securing tenders may take a number of different basic forms:
		+
		+	= Open tendering =
		+
		+	Open tendering allows anyone to submit a tender to supply the goods or services that are required. Generally, an advert will be placed giving notice that the contract is being tendered, and offering an equal opportunity to any organisation to submit a tender.
		+
		+	On larger projects, there may then be a pre-qualification process that produces a short-list of suitable suppliers who will be invited to prepare tenders. This sort of pre-qualification process is not the same as selective tendering (see below).
		+
		+	Open tendering has been criticised for attracting tenders / expressions of interest from large numbers of suppliers, some of whom may be entirely unsuitable for the contract and as a result it can waste a great deal of time, effort and money. However, open tendering offers the greatest competition and has the advantage of allowing new or emerging suppliers to try to secure work.
		+
		+	For a more detailed description of the procedures for open tendering, see Tender.
		+
		+	= Selective tendering =
		+
		+	Selective tendering only allows suppliers to submit tenders by invitation. A pre-selected list of possible suppliers is prepared that are known by their track record to be suitable for a contract of the size, nature and complexity required. Consultants or experienced clients may maintain ‘approved’ lists of prospective suppliers and then regularly review performance to assess whether suppliers should remain on the list.
		+
		+	Selective tendering can give clients greater confidence that their requirements will be satisfied and should reduce the wasted effort that can be involved in open tendering. It may be particularly appropriate for specialist or complex contracts, or contracts where there are only a few suitable firms. However, it can exclude smaller suppliers or those trying to establish themselves in a new market.
		+
		+	See selective tendering for more information.
		+
		+	= Negotiated tendering =
		+
		+	Negotiating with a single supplier may be appropriate for highly specialist contracts, or for extending the scope of an existing contract. It can reduce the costs of tendering and allow early contractor involvement, but the competitive element is reduced, and unless the structure of the negotiation is clearly set out there is the potential for an adversarial atmosphere to develop, even before the contract has been awarded.
		+
		+	See Negotiated tendering for more information.
		+
		+	= Serial tendering =
		+
		+	Serial tendering involves the preparation of tenders based on a typical or notional bill of quantities or schedule of works. The rates submitted can then be used to value works over a series of similar projects, often for a fixed period of time following which the tendering procedure may be repeated.
		+
		+	Serial tendering can reduce tender costs, and may encourage suppliers to submit low rates to secure an ongoing programme of work.
		+
		+	See also Serial tendering and Measured term contract.
		+
		+	= Framework tendering =
		+
		+	Clients that are continuously commissioning work might reduce timescales, learning curves and other risks by using framework agreements. Such arrangements allow the client to invite tenders from suppliers of goods and services to be carried out over a period of time on a [[Call-off_contract\|call-off basis]] as and when required.
		+
		+	For more information, see Call-off contract.
		+
		+	Framework tender documents are likely to include a request for a schedules of rates and time charges and a breakdown of resources and overheads to be applied (including any proposed subcontractor or sub-consultant details).
		+
		+	One or more suppliers are then selected and appointed. When specific projects arise the client is then able to simply select a suitable framework supplier and instruct them to start work. Where there is more than one suitable supplier on the framework, the client may introduce a secondary selection process to assess which supplier is likely to offer best value for a specific project. The advantage of this process to the client is that they are able instigate a selection procedure for individual projects without having to undertake a time-consuming pre-qualification process. This should also reduced tender costs.
		+
		+	For more information, see Framework contract.

	= [[Single-stage_tender\|Single-stage]] and two-stage tendering =		= [[Single-stage_tender\|Single-stage]] and two-stage tendering =

104.244.225.110 at 03:44, 23 November 2020

2020-11-23T03:44:03Z

← Older revision		Revision as of 03:44, 23 November 2020
Line 1:		Line 1:
−	= ~~Introduction~~ =	+	= =
−		+
−	~~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.~~	+
−		+
−	In construction, the main tender process is generally for the selection of the contractor that will construct the works. However, as procurement routes have become more complex, so tenders may be sought for a wide range of goods and services (for example, on a construction management contract the works are constructed by a number of different trade contractors each contracted to the client) and contractors may take on additional functions such as design and management.	+
−		+
−	There is also an increasing tendency for suppliers to be aggregated into single contracts, for example, 'integrated supply teams' on public projects may include; the main contractor, designers, sub-contractors, suppliers, facilities managers, and so on.	+
−		+
−	~~Irrespective of the nature of the goods or services that are being sought, the process for securing tenders may take a number of different basic forms:~~	+
−		+
−	~~= Open tendering =~~	+
−		+
−	Open tendering allows anyone to submit a tender to supply the goods or services that are required. Generally, an advert will be placed giving notice that the contract is being tendered, and offering an equal opportunity to any organisation to submit a tender.	+
−		+
−	On larger projects, there may then be a pre-qualification process that produces a short-list of suitable suppliers who will be invited to prepare tenders. This sort of pre-qualification process is not the same as selective tendering (see below).	+
−		+
−	Open tendering has been criticised for attracting tenders / expressions of interest from large numbers of suppliers, some of whom may be entirely unsuitable for the contract and as a result it can waste a great deal of time, effort and money. However, open tendering offers the greatest competition and has the advantage of allowing new or emerging suppliers to try to secure work.	+
−		+
−	~~For a more detailed description of the procedures for open tendering, see Tender.~~	+
−		+
−	~~= Selective tendering =~~	+
−		+
−	Selective tendering only allows suppliers to submit tenders by invitation. A pre-selected list of possible suppliers is prepared that are known by their track record to be suitable for a contract of the size, nature and complexity required. Consultants or experienced clients may maintain ‘approved’ lists of prospective suppliers and then regularly review performance to assess whether suppliers should remain on the list.	+
−		+
−	Selective tendering can give clients greater confidence that their requirements will be satisfied and should reduce the wasted effort that can be involved in open tendering. It may be particularly appropriate for specialist or complex contracts, or contracts where there are only a few suitable firms. However, it can exclude smaller suppliers or those trying to establish themselves in a new market.	+
−		+
−	~~See selective tendering for more information.~~	+
−		+
−	~~= Negotiated tendering =~~	+
−		+
−	Negotiating with a single supplier may be appropriate for highly specialist contracts, or for extending the scope of an existing contract. It can reduce the costs of tendering and allow early contractor involvement, but the competitive element is reduced, and unless the structure of the negotiation is clearly set out there is the potential for an adversarial atmosphere to develop, even before the contract has been awarded.	+
−		+
−	~~See Negotiated tendering for more information.~~	+
−		+
−	~~= Serial tendering =~~	+
−		+
−	Serial tendering involves the preparation of tenders based on a typical or notional bill of quantities or schedule of works. The rates submitted can then be used to value works over a series of similar projects, often for a fixed period of time following which the tendering procedure may be repeated.	+
−		+
−	~~Serial tendering can reduce tender costs, and may encourage suppliers to submit low rates to secure an ongoing programme of work.~~	+
−		+
−	~~See also Serial tendering and Measured term contract.~~	+
−		+
−	~~= Framework tendering =~~	+
−		+
−	Clients that are continuously commissioning work might reduce timescales, learning curves and other risks by using framework agreements. Such arrangements allow the client to invite tenders from suppliers of goods and services to be carried out over a period of time on a [[Call-off_contract\|call-off basis]] as and when required.	+
−		+
−	~~For more information, see Call-off contract.~~	+
−		+
−	Framework tender documents are likely to include a request for a schedules of rates and time charges and a breakdown of resources and overheads to be applied (including any proposed subcontractor or sub-consultant details).	+
−		+
−	One or more suppliers are then selected and appointed. When specific projects arise the client is then able to simply select a suitable framework supplier and instruct them to start work. Where there is more than one suitable supplier on the framework, the client may introduce a secondary selection process to assess which supplier is likely to offer best value for a specific project. The advantage of this process to the client is that they are able instigate a selection procedure for individual projects without having to undertake a time-consuming pre-qualification process. This should also reduced tender costs.	+
−		+
−	~~For more information, see Framework contract.~~	+

	= [[Single-stage_tender\|Single-stage]] and two-stage tendering =		= [[Single-stage_tender\|Single-stage]] and two-stage tendering =

82.132.218.236: Undo revision 182140 by [[Special:Contributions/[IP address hidden]|[IP address hidden]]] ([[User talk:[IP address hidden]|talk]])

2020-11-15T16:55:29Z

Undo revision 182140 by [[Special:Contributions/[IP address hidden]|[IP address hidden]]] ([[User talk:[IP address hidden]|talk]])

← Older revision		Revision as of 16:55, 15 November 2020
Line 1:		Line 1:
		+	= Introduction =

		+	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.

−	[[Category:DCN_Definition]]	+	In construction, the main tender process is generally for the selection of the contractor that will construct the works. However, as procurement routes have become more complex, so tenders may be sought for a wide range of goods and services (for example, on a construction management contract the works are constructed by a number of different trade contractors each contracted to the client) and contractors may take on additional functions such as design and management.
−	[[Category:DCN_Guidance]]	+
−	[[Category:Contracts_/_payment]]	+	There is also an increasing tendency for suppliers to be aggregated into single contracts, for example, 'integrated supply teams' on public projects may include; the main contractor, designers, sub-contractors, suppliers, facilities managers, and so on.
−	[[Category:Procurement]]	+
		+	Irrespective of the nature of the goods or services that are being sought, the process for securing tenders may take a number of different basic forms:
		+
		+	= Open tendering =
		+
		+	Open tendering allows anyone to submit a tender to supply the goods or services that are required. Generally, an advert will be placed giving notice that the contract is being tendered, and offering an equal opportunity to any organisation to submit a tender.
		+
		+	On larger projects, there may then be a pre-qualification process that produces a short-list of suitable suppliers who will be invited to prepare tenders. This sort of pre-qualification process is not the same as selective tendering (see below).
		+
		+	Open tendering has been criticised for attracting tenders / expressions of interest from large numbers of suppliers, some of whom may be entirely unsuitable for the contract and as a result it can waste a great deal of time, effort and money. However, open tendering offers the greatest competition and has the advantage of allowing new or emerging suppliers to try to secure work.
		+
		+	For a more detailed description of the procedures for open tendering, see Tender.
		+
		+	= Selective tendering =
		+
		+	Selective tendering only allows suppliers to submit tenders by invitation. A pre-selected list of possible suppliers is prepared that are known by their track record to be suitable for a contract of the size, nature and complexity required. Consultants or experienced clients may maintain ‘approved’ lists of prospective suppliers and then regularly review performance to assess whether suppliers should remain on the list.
		+
		+	Selective tendering can give clients greater confidence that their requirements will be satisfied and should reduce the wasted effort that can be involved in open tendering. It may be particularly appropriate for specialist or complex contracts, or contracts where there are only a few suitable firms. However, it can exclude smaller suppliers or those trying to establish themselves in a new market.
		+
		+	See selective tendering for more information.
		+
		+	= Negotiated tendering =
		+
		+	Negotiating with a single supplier may be appropriate for highly specialist contracts, or for extending the scope of an existing contract. It can reduce the costs of tendering and allow early contractor involvement, but the competitive element is reduced, and unless the structure of the negotiation is clearly set out there is the potential for an adversarial atmosphere to develop, even before the contract has been awarded.
		+
		+	See Negotiated tendering for more information.
		+
		+	= Serial tendering =
		+
		+	Serial tendering involves the preparation of tenders based on a typical or notional bill of quantities or schedule of works. The rates submitted can then be used to value works over a series of similar projects, often for a fixed period of time following which the tendering procedure may be repeated.
		+
		+	Serial tendering can reduce tender costs, and may encourage suppliers to submit low rates to secure an ongoing programme of work.
		+
		+	See also Serial tendering and Measured term contract.
		+
		+	= Framework tendering =
		+
		+	Clients that are continuously commissioning work might reduce timescales, learning curves and other risks by using framework agreements. Such arrangements allow the client to invite tenders from suppliers of goods and services to be carried out over a period of time on a [[Call-off_contract\|call-off basis]] as and when required.
		+
		+	For more information, see Call-off contract.
		+
		+	Framework tender documents are likely to include a request for a schedules of rates and time charges and a breakdown of resources and overheads to be applied (including any proposed subcontractor or sub-consultant details).
		+
		+	One or more suppliers are then selected and appointed. When specific projects arise the client is then able to simply select a suitable framework supplier and instruct them to start work. Where there is more than one suitable supplier on the framework, the client may introduce a secondary selection process to assess which supplier is likely to offer best value for a specific project. The advantage of this process to the client is that they are able instigate a selection procedure for individual projects without having to undertake a time-consuming pre-qualification process. This should also reduced tender costs.
		+
		+	For more information, see Framework contract.
		+
		+	= [[Single-stage_tender\|Single-stage]] and two-stage tendering =
		+
		+	[[Single-stage_tender\|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.
		+
		+	For more information, see [[Single-stage_tender\|Single-stage tendering]].
		+
		+	Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the information required to enable them to offer a fixed price. 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
		+
		+	For more information, see Two-stage tendering.
		+
		+	= Public procurement =
		+
		+	Public projects or publicly-subsidised projects may be subject to OJEU procurement procedures, enacted in the UK by The Public Contracts Regulations. The regulations set out rules requiring that contracts must be advertised in the Official Journal of the EU (OJEU). This is of particular importance because the time taken to advertise contracts can be up to 52 days. The regulations also describe allowable procedures for the selection of contractors.
		+
		+	For more information, see Public procurement.
		+
		+	= Related articles on Designing Buildings Wiki =
		+
		+	* E-auction.
		+	* Typical tender process for construction projects
		+	* Tender documentation for construction projects
		+	* Selective tendering
		+	* Single-stage tender
		+	* Two-stage tender
		+	* Procurement route
		+	* Open tendering of construction works
		+	* Negotiated tendering
		+	* Invitation to tender for construction contracts
		+	* How to prepare tender documents
		+	* Tender evaluation
		+	* Pre-qualification questionnaire PQQ for construction contracts
		+	* OJEU procurement procedures
		+	* Form of tender
		+	* Serial tendering
		+	* Public procurement
		+	* Framework contract
		+	* Appointing consultants for building design and construction
		+	* Construction contract
		+	* Call-off contract
		+	* Computers in construction tendering
		+	* Suppliers for design and construction
		+	* Due diligence when selecting contractors or subcontractors
		+
		+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]