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advantages of open tendering
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Updated 8/8/2011 3:47:56 AM
1 Answer/Comment
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. 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. 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. It is almost inevitable that intending parties will know who else is bidding - espcially if they all approach the same subcontractor/specialists. You need to guard against collusion or proce rigging (it happens). 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. One disadvantage is that you have not really had the benefit of a contractor's input during this stage - so may have missed a few tricks as to how to make the design as economic as possible - which occurs in other forms of procrment - eg maximum guaranteed price arrangements. The most successful commercial contracts are often negotiated - open tendering wastes a lot of money - but that is not generally possible in public contracts.
Added 8/8/2011 3:47:56 AM
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