Open tendering

In open tendering, details of the proposed project are advertised publicly in the press and on the internet.

The advertisement would include details on the type of project, and its anticipated programme. Contractors wishing to tender reply to the advertisement and receive the tender documents.

Any contractor, irrespective of size or capability, may apply for the documents, although a fee may be charged to obtain them, and tender. The advertisement is not legally binding and the client, like all tenders, is not bound to accept the lowest tender. Once completed, all tenders will be returned by the stipulated date and time. It is then the decision of the client, with advice from the design team, to choose the successful contractor.

The tender process is then the same as for single-stage selective projects.

Open tendering is seen as the tendering method which allows new contractors to bid for projects and allows the client to select a contractor offering one of the most competitive prices. However, using unknown contractors without an established track record could be seen as a high-risk option, as the client does not know how well the work will be carried out in terms of time and quality.

Your task

Do you think that open tendering results in the highest number of competitive bids compared to other tendering methods? Answer this question from the point of view of a client and a contractor.

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This article is from the free online course:

Procurement Strategies and Tendering

Coventry University