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Method of Contractor Selection

The document discusses two methods of contractor selection: open tendering and selective tendering. Open tendering allows any firm to apply but may result in selecting inexperienced contractors, lengthy timeframes, and higher prices due to intense competition. Selective tendering ensures only capable firms bid, offers faster tendering and known costs, but reduces innovation and competition, resulting in potentially higher costs. Both methods have advantages and disadvantages to consider.

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Bgee Lee
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214 views

Method of Contractor Selection

The document discusses two methods of contractor selection: open tendering and selective tendering. Open tendering allows any firm to apply but may result in selecting inexperienced contractors, lengthy timeframes, and higher prices due to intense competition. Selective tendering ensures only capable firms bid, offers faster tendering and known costs, but reduces innovation and competition, resulting in potentially higher costs. Both methods have advantages and disadvantages to consider.

Uploaded by

Bgee Lee
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Method of Contractor Selection

1) Open Tendering
Advantages
No favourism (everyone can apply for
the tender)

Disadvantages
Selected contractor might not suit the
project (ex: no experience)

High competition in pricing (client will Inexperienced firms can enter into the
take good price)
New firms can enter into the market
Increased employment opportunities

market
Lengthy timeframe for completion of
the procurement action

(new firm comes)


New experience (new technology)

2) Selective Tendering
Advantages
Ensures that only capable and
approved firms submit tenders

Disadvantages
Reduce the potential for innovation
Cost level of the tenders will be higher

Fast tendering

due to less competition and also due to

Costs are known for quick negotiation

higher caliber of the tenderers

Reduced the cost of tendering

Its application requires a high level of

(economic use of resources, reduced

familarity and commitment on the part

tender documentation, shorter tender

of employer and contractor

periods, better management of the


tender process, etc.)
Practical skills and buildability

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