Open tendering process

In this case, any supplier can bid to supply the goods and services. Furthermore all bids that are compliant with the original conditions laid dow n in the invitation to tender must be considered and evaluated in the same way as all the others. With a major project where there are lots of bids and the evaluation process is time-consuming, this can be an expensive way of doing things.

In recent years, there has been a global movement towards removing artificial barriers that hamper businesses in one country supplying goods and services in another. Examples of this are the drives by bodies such GATT and the European Union to ensure that national governments and public bodies do not limit the granting of contracts to their fellow nationals without good reason. One element of this is the laying down of rules about how tendering processes should be carried out. In certain circumstances, these demand that an open tendering process be adopted.

GATT stands for General Agreement on Trade and Tariffs'. The specific part of GATT that is relevant here is the Agreement on Government Procurement. GATT covers the EU and also several other countries including the US and Japan.

Restricted tendering process

In this case, there are bids only from suppliers who have been invited by the customer. Unlike the open tendering process, the customer may at any point reduce the number of potential suppliers being considered. This is usually the best approach to be adopted. However, it is not without risk: where the resulting contract is at a fixed price, the customer assumes responsibility for the correctness and completeness of the requirements specified to the prospective suppliers. Defects in this requirements documentation sometimes allow a successful bidder subsequently to claim for additional payments.

Was this article helpful?

0 0
Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook


Post a comment