Serial Tendering Advantages And Disadvantages

A lot also depends on the quality of the information - if it is good the contract is more likely to be enforceable but may result in the contractor going bust - bear in mind that most consultants have had to cut their fees to compete for the work so may not be able to resource the projects as they would wish. You need to guard against collusion or proce rigging (it happens). It is almost inevitable that intending parties will know who else is bidding - espcially if they all approach the same subcontractor/specialists. You can include a quality component as part of the assessment but it is often difficult to discount a low offer which may be unrealistic. If selection is solely on cost it is likely to give rise to problems during the course of construction - especially if the contractor doesn't really know hat he is doing. Negotiated Contracts.īest Answer: It avoids work being restricted to the same old names - gives other suitably qualified operators an opportunity which may be beneficial, especially if they are more efficient or have lower overheads. It allows smooth transition with less additional expenses.In addition, the contractor’s workforce will be familiar with the details of the construction after building the first phase, and it helps to work more speedily and efficiently. The purpose of serial tendering is to gain the benefits of continuity.The contractor for the first phase of the project will have his site organization set up, his offices and storage huts, etc., already in use and plant of various kinds on the site.When the second phase commences, these facilities will be already available. When a large project is to be carried out in successive phases, a combination of selective tendering and nomination is employed – this is sometimes called “serial tendering”.The contractor is chosen for the first phase by means of selective competitive tendering.The accepted tender forms the basis of payment for the resulting contract.The tender is also used for the second and later phases, provision being made for so doing in the initial contract by the inclusion of a formula for updating prices. Contract sum will be arrived by a process of negotiations. Competition is eliminated and that will lead to a higher price.

Used when the client has a preference for a particular firm, often because it has done satisfactory works for him before.

Serial Tendering Advantages And Disadvantages