Advantages Of Open Tendering Construction Essay

Advantages Of Open tenderiseing Construction EssayOpen tendering is a one- point in m cabalding process, where all in all interested and responding to contract notice leave behind be invited to submit a tender. The contract notice states where to obtain tender documents and the last date when tenders will be accepted.Open tender is open to public all the interested firms can apply for the contract.Advantages of open tenderingNo favourism (everyone can apply for the tender) high up competition in pricing ( client will take near(a) prize)New firms can enter into the marketIncreased employment opportunities ( new firms comes)New follow up (new technology)Helps asseverators to growContractors get new clientDisadvantages of open tenderingSelected contractor might not suit the jump out (ex no experience)Inexperienced firms can enter into the marketUnknown firms can enter into the marketsWaste of estimating timeHigh aggregate cost for tender (ex electricity, transport)High paygra de time (because we have to check all the documents)Unrea distinguishic competitionArbitrations2.0.2 Selective tenderingA process of warlike tendering for award of the contract for structure whereby the proprietor selects the constructors who are invited to tender to the exclusion of others, as in the process of open tendering. It means the client selects the contractor from express list invitation to tender is made by client to the contractor by a letter.In selective tendering short listing can be through by,InvitationICTAD categoryPrequalification (financial)Post qualificationNegotiationIn selective tendering in that respect can be two stages,One stage selective tenderingTwo stage selective tenderingOne stage selective tenderingClient advertise for contractor to apply for short listingShort list the contractors who are considered suitable to do the acetify approved list is chief(prenominal)tained by the client. (competition)Two stage selective tenderingSingle stage for co mpetition, double stage for competition plus early(a) start of work at pose.Contractors experience/ practical knowledge is utile at the design stageFirst stageInviting for tenderInform round 2 stage tenderPre select the contractor (a simple BOQ)Contractors spring proposal for the designSecond stageNegotiate the rates with the contractor for second timeAdvantages of Selective tenderWell known contractorGood qualityLess aggregate cost for tenderLess evaluation timeDisadvantages of Selective tenderFavourismLess price competitionCartel tenderingNew firms cannot enter in to the marketRegular updating is necessary2.1 Factors which used by client to formulate the select list2.1.1 Information of the comp anyInformation of the company is very important when the clients are giving the tenders. Because they want to know how to a greater extent they can trust that company. Reason is some companies are new to the industry some are very old to the Industry. When companies are new to indust ry, the risk is more(prenominal)(prenominal) to the client. Because when companies are new to the industry most of the companies are not continue their services. But when we talking about old companies they are continue their services. Because of that clients like to handover there tender to the old companies than the new companies.2.1.2 Awards achievementsWhen the companies are continuing their work some de beginments presenting awards for best company of the yearetc. When companies are offering awards clients like to handover their tender to these companies. Because theres no any risk to the client.2.1.3 Success completey complete estimatesClient giving a contract to a contractor it is essential to know the successfully completed projects. Because some companies however not complete a single project even. So that is developing their trust on the contractor.2.1.4 Work in progressThe work they doing during they applying for the tender is more important for client to handover t heir tender for the contractor. That is a benchmark for the company to take a tender.2.1.5 ICTAD grading and relevant documentary evidenceIn construction discipline ICTAD grading is more important than the other qualifications to get a contract or a tender. ICTAD grading is one that saying about the company which is computable in construction work that company has evidence to prove that, their company is good in work completing projects. So ICTAD grading is more useful to client to give a tender to a company.2.1.6 Financial schoolingFinancial side of a company is very useful for client whether give the tender or not to the company. Because some of the companies are new to the industry. So their financial side is not stronger than the other old companies. So the financial information of a company is more useful for client.2.1.7 Experience as a main contractorExperience as a main contractor is more essential for the client to build up a relationship or to give the tender to the c ontractor. Because to take the tender for their company all the construction companies of the rural area apply for it. But some are new some are very much of experience companies. Actually client not takes any debt instrument to hand over the tender to new company. Because they still new to the industry they are not take any experience as a main contractors, but old companies they are full fill with lack of experience as a main contractor. So client likes to give their tender to an experience company. So experience as a main contractor is very important bench mark to get a tender from client.2.2 Typical clients2.2.1 Banks digest of the client internal necessarily, new product which impact on the internal environment of the client, focus of the public, opened, or closed tender for providers of required solution, evaluation of tender, the muster in of basic documents in terms of functional specification of solution and its pricing structure, origination of the documentation.2.2 .2 MerchantAnalysis of merchants (client) internal needs, target group specification with full consideration of credit card products, Suggestion of adequate partner for credit card acceptance, invitation and management of the public, opened, or closed tender for suppliers of required solution evaluation of the tender.2.2.3 Government agencyAnalysis of clients internal needs in consideration of specifics of public service, analysis of impact of new solutions on internal environment of the client, invitation and management of the public tender for suppliers of required solution evaluation of tender.2.3 Tender processThere are three parties of tender process. There areClient consultantContractor2.3.1ClientA client is a person (individual or organization) which carry out a project or a work himself or some other person or an organization. It means client is anyone having construction or building work carried out as part of their business. Without a client we cant a construction proje ct. He is the man who authorized the project.Client has some kinds of duties to do.Check competence and resources of all appointees.Allow sufficient time and resources for all stages.Be live up to that each designer and contractor appointed has adequate training, knowledge, experience and resources for the work to be performed.Allow sufficient time for each stage of the project, from concept onwards. raise a copy of the safety and health plan prepared by the PSDP to every person tendering for the project.Provide information relating to the health and safety file to the CDM coordinator. earlier the construction work starts client have to see whether the welfare facilities are on the site.2.3.2 ConsultantA consultant is an individual who possesses special knowledge or skills and provide that expertise to a client for a fee. It means a construction consultant someone who is hired to assess and advise on morphologic issues. Consultant helps all sort of businesses find an implement sol ution to wide variety problems. They usually have several years of experience in construction field. They are familiar with all kind of construction companies. Commonly the work as a consulting firms but sometimes they work for legal firms sometimes they work as an individual contractor.Construction consultants do many different things. Some assist companies with administration tasks they make sure everything is running smoothly, and on time, so that the site owner and managers can concentrate on other business matters. A construction consultant may be hired to keep a project running on budget, and handle any problems that may appear. This may also mean working as an in-between for the owner of the site and the construction crew. some other duty which consultant has to do is judicial work. It means some times when continuing the work it might be failed. Then the consultant has to give the flat coat why the construction process is failed. Sometimes the problem must be small, such a s weakness of the labours or sometimes the problem with the structure which design. some other duty of a consultant is if the building or the project fails consultant has to inform the client why it is failed, what the reasons for failed etc.2.3.3 ContractorA contractor is a person who in the course or furtherance of a business, carries out or manages construction work. It means in construction he is the man who trusty daytime to day happening in the site. Actually we can name the contractor as general contractor of the site. The contractor is employed by the client. forecast ones contractor got the tender first thing is he have to visit the site to get better understanding about the project. Secondly the contractor makes the prizing list which called as estimate. A duty which contractor has to do is manage the work. It is the most important thing in the site. It means he has to plan the day forthwith work like what are the risks we have to achieve, when we going to complete th is project, what are the needs of the labours including health safety, protecting the public while doing the projectetc. as a contractor if he plans the work in time we can keep the relationship between client contractor.Another responsibility which contractor needs to do is providing information trains them for the rules regulations. Its includes site introduction, risks, sit rulesetc.2.4 Contractual documentation required for tendering entreat flummoxform of tenderconstruction programday work schedulepower of attorneyprequalification documentQuality and safety proceedingCopy of ICTAD,NCASL registration2.4.1 Bid bondOn most study construction projects, work is awarded through a process known as play. A bid bond is important to show proof of guarantee to the project owner that you can obey with the bid contract and also that you can accomplish the job as laid out in the contract. A bid bond is a guarantee that you provide to the project owner stating that you have the capabili ty to take on and implement the project once you are selected during the bidding process. Normally, project owners do not know if a contractor is financially stable or has the necessary resources to take on a project2.4.2 how bid bond worksDuring bidding, various contractors estimate what the job will cost to complete. They submit this price to the owner in the form of a bid. The lowest bidder will be awarded a contract for the job. If this bidder realizes they made a mistake with their bid, or refuses to sign the contract for any reason, the adhere company will ensure the owner suffers no financial loss. This usually means that the bonding company will pay the owner the difference between the lowest and next lowest bids. Sometimes, the bonding company may sue the contractor to recover these costs. The possibility of policesuits depends on the terms of the bond.2.4.3 Bid bond RequirementsUnder theMille act, which is still the standard today, all bidders are required to submit bid bonds on any federal project. Many private firms have copied this trend to protect themselves from risk during the bid process. Getting bond is very important if you want your company to become competitive in construction filed.2.4.4 Form of tenderA tender form is issued to a supplier during the Invitation to Tender process. Each Tender Form helps the team to collect information about potential suppliers so that they can appoint one or more preferred suppliers to the business. As each Tender Form is released to the suppliers, the progress is tracked in the Tender Register. To save time creating each Tender Form, a Tender Template is used.2.4.5 Construction programA work method statement, sometimes referred to as a safe work method statement or a safe work procedure, is a part of a workplace safety plan. It is predominately used in construction to describe a document that gives specific instructions on how to safely perform a work related task, or operate a piece of plant or equipme nt. In many countries it is law to have work method statements, or similar, in place to advice employees and contractors on how to perform work related tasks safely.The statement is generally used as part of a safety induction and then referred to as required throughout a workplace. The construction program envelop the following,purposescope