Open tendering is the most competitive tender option, allowing anyone who is interested in an opportunity to bid on it. Some invitations, for example, those that involve large projects, may require that contractors are prequalified before submitting an open tender. The opportunity is advertised where contractors can see it, and all interested contractors are invited to submit a bid. Open tenderingĭuring an open tendering process, anyone may submit a tender in response to the owner’s invitation. There are several types of tender processes that may be used to select a contractor: open, selective, negotiated, serial, framework, single-stage, and two-stage tendering. The owner or other parties involved reviews the tenders and selects the best one that fits their needs. Based on the tender documents, contractors provide pricing to the owner.
The tender document includes all the information needed to provide pricing on the proposed scope of work. The process starts with an invitation to tender (ITT) a construction project. A tender process is used most often by public entities in their bid process but can be seen occasionally in the private sector as the process to identify a suitable contractor for a given project.
The tendering process helps ensure true competition based on the same selection criteria. Tendering in the construction industry is the process of requesting and receiving a price for a specific scope of work.
