The construction sector required handling tendering processes for each project. That is why tenders are considered the routine procedure for builders, customers, subcontractors, and general contractors. Everyone understands that the best-matching performer for the building project starts from bid invites and different tendering stages.
The tender procedure includes several stages. The process itself is quite voluminous and expensive, but to optimize the process for your convenience, you can use special quoting software for builders. Let’s take a step-by-step look at what a tender is.
What Is a Construction Tender?
When the customer selects the best-matching contractor and team of builders for his/her task, the construction tender takes place. There are many types of tendering procedures to take into account. Nevertheless, there are the principal stages of each tender when it comes to building projects.
It means that there are the same parties usually together with similar responsibilities and guarantees. The model of cooperation (like contractors + subcontractors or directly the client + contractors) is discussed in the pre-tendering phase. Additionally, the agreements and contracts are alike for construction projects as well.
Some peculiarities are observed when it comes to specifics of the order and the expectations of these or those customers. That is why bidding and the middle-stage tendering procedures can vary from project to project.
Selection of Contractors for Bidding
Often, the contractors are the main participants in the tenders. They compete with other performers in the context of the right to handle the project presented by the customers. There are three options for choosing a contractor:
- Open auction. Opportunity to participate for anyone.
- Selective bidding. Closed bidding, the participants of which are selected by the design team.
- Selection of a single contractor. The main selection criterion is negotiations.
The choice of the best-matching contractor for work will give a guarantee of their qualifications, experience, and professionalism. The most attractive offer is selected by the client while taking into account all the principal features of the performer like cost estimates, deadlines, and a range of available services.
OJEU Bidding Rules for the Tendering Process
The European Union has approved certain rules to make government purchases. At the same time, OJEU trades follow these rules during the tender process. It is worth noting that the compliance threshold is constantly changing and all this is recorded on the official OJEU resource.
Evaluation of a Suitable Tender Period
Contractors are obliged to respond to inquiries within the optimal time frame. The timing requirements depend on the complexity of the project itself, its size, the season, and market conditions.
During the PQQ phase, contractors are required to comment on how long it will take them to meet customers’ demands and expectations. There should be enough time for contractors to assess the preliminary cost of the object, including all costs and profits.
Preparation of Tender Documentation
An important component in the tender is the documentation. First of all, it is worth saying that the contract is drawn up based on the scope of work, approved schedules, rates, and other conditions of the project.
In the field of tendering, there are several specific sets of rules that must be followed when filling out the documentation. The list of what must be included in the contract contains the following regulations:
- Letter of invitation to participate in the tender. It is an official inviting document to participate in the tender. Contact information and presentation of the project are indicated obligatory.
- Tender form. Official confirmation from the contractor is presented to prove the fact that this party is willing to participate in the tender.
- Terms of the contract. The opportunity for participants and the customer to make their adjustments and proposals on the terms of the contract. The schedules are approved by all the parties.
- Instructions for Bidders. The obligations of the contractor – the deadline for the completion of work, the calculation of points based on the results of the tender, organizational issues of site visits, etc.
It is worth noting that the range of appendix documents can take place to make some details clear at the very beginning of the tendering process. Additional information presented in the form of applications can be exemplified with issues related to labor protection, safety, construction control, checking the condition of the facility, maintaining a risk register, etc.
