Tendering is a competitive procurement method for acquiring goods, services and works. 

The tender process involves the selection of a suitable tendering process, the clear communication of contract conditions, project information, employers’ requirements, pricing documents (BOQ, Activity Schedule, Schedule of Works etc.) and a robust tendering strategy involving auditability, accountability, parity and ensuring that everything is completely picked up.

There are three primary tendering options available to BHD, these are Negotiated, Open and Selective tendering.

Negotiated tendering:

A form of Single Stage tendering where an initial price is received from a single nominated contractor, this is then negotiated professionally. Advantages involve speed of appointment, but disadvantages involve a lack of competition and therefore lack of perceived value for money. This form of tendering is not recommended to BHD since the typical timeframe for planning/ local government permissions can be considered to be between 18 to 24 months and value for money can be considered as more important than urgency of appointment. Wotschke.P (2024).

Open tendering:

A procurement method by issuing an Invitation to Tender to a platform, open to all qualified and interested bidders. The Invitation to Tender includes qualifications, specifications and objectives and is typically awarded to the least cost provider. Advantages of this approach include competition and transparency. This form of tendering is not recommended to BHD due to the specialism of the contract. Refurbishment contracts can be considered to be specialist bespoke works and an Open Tender offers no guarantee of capability.

Disadvantages include, no guarantee of capability (can implement a pre-qualification process), inexperienced firms, general construction costs increase due to running of framework.

Recommendation - Selective tendering:

A procurement method where contractors are invited to submit a tender by invitation. Contractors are chosen based on experience, track record, reputation, audit requirements etc. Due to the bespoke nature of the refurbishment, the client is advised to approach a selection of contractors.

BHD are recommended to pursue this procurement method and engage in a pre-qualification process through a request for interest. The request for interest will ensure that BHD receive a sufficient number of tender returns on the contract. Due to BHD’s experience in the industry, it is expected that they will have a sufficient knowledge of the specialist companies within the market that are able to undertake the refurbishment works. BHD can then select a tender return based on their preference of Price/ Quality/ Time