Tendering in construction is a process that involves businesses inviting bids for large projects. Tendering is common for public projects and is often required by law to ensure transparency and fairness in the bidding process. It also encourages healthy competition among contractors, which leads to better pricing and quality of work.
The tendering process starts with the client identifying a need for a construction project and preparing a brief. The client then invites contractors to submit their proposals by sending them a notice of invitation to tender (NITT). This document outlines the requirements and deadline for submitting the proposal.
Contractors prepare a detailed proposal and submit it by the deadline specified in the NITT. They must include their pricing and how they plan to meet the project's requirements. Once the tenders have been received, the client evaluates the proposals and chooses a contractor for the project. The client may also negotiate with contractors on the price and scope of the project.
The type of tendering used will depend on the size and complexity of the project. For example, for complex or high-profile projects, the client might use two-stage selective tendering where contractors are invited to the first stage only if they meet certain criteria. This method helps to reduce the number of potential competitors and prevents time-consuming preparation costs that would be passed on to clients in the form of higher prices. It’s also a good option for projects with complex design work that hasn't been completed.