8/20/2019 Method of Contractor Selection

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Method of Contractor Selection

1) Open Tendering

Advantages Disadvantages

 No favourism (everyone can apply for

the tender)

High competition in pricing (client will

take good price)

 New firms can enter into the market

ncreased employment opportunities

(new firm comes)

 New e!perience (new technology)

"elected contractor might not suit the

 pro#ect (e!$ no e!perience)

ne!perienced firms can enter into the

market

%engthy timeframe for completion of

the procurement action

&) "elective Tendering

Advantages Disadvantages

'nsures that only capale and

approved firms sumit tenders

ast tendering

*osts are known for +uick negotiation

,educed the cost of tendering

(economic use of resources- reduced

tender documentation- shorter tender

 periods- etter management of the

tender process- etc.)

/ractical skills and uildaility

,educe the potential for innovation

*ost level of the tenders will e higher

due to less competition and also due to

higher calier of the tenderers

ts application re+uires a high level of

familarity and commitment on the part

of employer and contractor