Learn With Me: Procurement Vs Tendering

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Although they are closely related, the processes of procurement and tendering are unique and aim to accomplish different things.

In the context of a building project, the term "procurement" refers to the overarching process of procuring goods, services, and works from outside sources. This comprises determining the requirements of the project, choosing the vendors and contractors who will work on it, negotiating the terms of the contracts, and supervising the delivery of the items and the payment for the services rendered. The objective of procurement is to guarantee that a project will be finished on time and within its allotted budget by securing the necessary labour and supplies at the lowest possible cost.

On the other hand, tendering is a subset of procurement that refers to the process of collecting bids from prospective contractors for a building project. Tendering is a specific aspect of the procurement process. The steps involved in the bidding process are as follows: publishing a request for proposal (RFP), receiving and analysing bids, and finally awarding the contract to the bidder who received the highest total score. The purpose of the tendering process is to select the contractor who is the most qualified and capable for the project while also providing the owner with the greatest value.

In a nutshell, tendering refers to the specific process of soliciting bids from potential contractors and selecting the successful bidder, whereas procurement refers to the overall process of acquiring goods, services, and works for a construction project. In contrast, procurement is the overall process of acquiring goods, services, and works for a construction project.

Tendering strategy for construction projects

The practise of collecting bids from possible contractors for a construction project is referred to as "tendering" in the construction industry. A plan that specifies the approach that will be taken in the process of bidding, including the selection criteria, the assessment procedure, and the communication with bidders, is known as a tendering strategy. The following are some of the essential components that make up a successful construction bidding strategy:

Prequalification of potential bidders is conducting an evaluation of the credentials and experience of prospective bidders to ascertain whether or not they possess the necessary skills and resources to successfully complete the project.

The request for proposals, also known as an RFP, is a document that describes the scope of the project, the selection criteria, and the evaluation method. It is given out to prospective bidders who have already been prequalified in order to elicit their bids.

Evaluation of bids: The evaluation of bids is done based on the criteria that are mentioned in the RFP. These factors include cost, technical capabilities, and experience.

Awarded to the bidder who was judged to have submitted the overall most compelling proposal, the contract goes to that individual.

Communication with bidders Having communication that is both clear and effective with bidders is essential during the entire process of tendering. This involves providing potential bidders with all of the information that they require, answering any questions that they may have, and keeping them updated on any changes that may be made to the process of bidding.

A successful approach for tendering will assist to guarantee that the process is both fair and transparent, which will ultimately lead to the selection of the contractor who is the most qualified and capable for the project. In addition to this, it should be adaptable to new situations and offer the proprietor a diverse selection of possibilities from which to choose. Flexibility is essential.



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