Open tender - is the process of involved stakeholders making an proposal, bid or offer, or expressing concern in response to request or an invitation for tender. For instance developers will pursue building contractors to reply to their individual building or development and select an tender offer that will achieve their requirements. Moreover, an offer should provide the best possible value for money (Forlee R., 2015, p.246).
Types of requests in tender process
Tender may be issued through different requests such as (Forlee R., 2015, p.247):
- Expressions for interests (EOI) which is used before seeking exact offers.
- Second possibility is request for information (RFI) used in the first phase which concerns planning stage to support in defining the project, but not used to pick suppliers.
- Third way is request for proposal (RFP) used when flexible or innovative solution is needed
- Finally request for tender (RFT) which is open to all contractors and concerns an invitation to bid by public advertisement.
Types of tender process
Types of tender process are (Forlee R., 2015, p.247):
- Selected tender which is open to a limited number of contractors which could be shortlisted from suppliers recommended by project manager or from an open bid.
- Second possibility is invited tender when the developer connections a picked number of suppliers directly and also requests them to execute the contract. It is mostly used for emergency situations, specialist work, low-risk, low-value or off-the-shelf opportunity.
- Further option is open tender which is an invitation to bid via a public advertisement. Contractors are obligated to submit required information and moreover, there are no limitation who can submit a bid.
Open tender in simplified form
One of the case to carry out in the contracts first phase is the option by which the potential contractors for the exact project are to be picked. It is a planning stage. The most commonly used method is open tender for the contract price by an advertisements. Open competitive tendering is one of the methods for public performances contracts which is described by the European Directive. Open tender is a process at which everyone who wishes submit their offer could do this, but in some procurement organizations just only representatives of tender process could attend (Marsh P., 2015, p. 37).
The main Tendering principles
The main Tendering principles concerns for instance:
- Individuals could use limited tendering procedures or open tendering procedures.
- In the open tender process parties may publish an invitation to take part in such a way as to be easily accessible to any supplier of the other entity.
- Terms and conditions for participation in open tender process may be publish in proper time.
- The tender process should be non-discriminatory and fair and should also have a method to eliminate potential conflicts between suppliers participating in the tender process and persons administering the process.
- Also crucial principle is that confidentiality at each stage bidding is required.
Open tendering permitting tenders from any contractor interested , might be unwanted because it involves too many potential contractors in abortive bidding that is inefficient and waste resources (Telfrod T., 2000, p.3). Tender procedure concerns contracts for the realization of projects. The idea of open bidding has developed into more elaborate form in respect of huge projects, particularly where works have to conduct overseas (C.K.Haswell, 2013, p.136).
- Forlee R., (2015), Australian Residential Property Development for Investors, Wrightbooks
- Haswell C.K., Silva D.S., (2013), Civil Enigineering Contracts: Practice and procedure, Butterworths
- Marsh P., (2015) Contracting for Engineering and Construction Projects, Routledge
- Tendering for Civil Engineering Contracts, (2000), Thomas Telfrod
- United Nations Conference on Trade and Development. International Investments Instruments: A compendium, (2003), Volume XII, Article 7, United Nations
Author: Aleksandra Jóźwik