E-tendering can be defined as the issue and receipt of tender documentation through electronic means which facilitates the procurement of construction work and the award of contracts.
Abstract – E-tendering can be defined as the issue and receipt of tender documentation through electronic means which facilitates the procurement of construction work and the award of contracts. The current paper-based method of tendering has been commonplace within the industry for a significant number of years, but with recent technological advancements, this traditional process is rapidly becoming outdated.
Several major projects within the UK are now being procured through the e-tendering process which includes the multi-billion pound development for the Olympic Games in London 2012. However, while these prestigious projects are embracing e-tendering technology, it is not certain as to what extent e-tendering is used across the construction sector generally.
This research is primarily concerned with establishing the current status, practicalities and resource effectiveness of e-tendering within UK construction. Results are provided from an industry survey which includes both quantitative and qualitative data.
A case study implementation is also included which assesses the utilisation of e-tendering software in practice. The research findings indicated that e-tendering can provide substantial resource savings to a major part of the supply chain, with the key benefits being enhanced communication, time savings and reduced costs.
However, a considerable proportion of the industry remains uncertain about embracing new technologies, with reluctance to change being perceived as the greatest barrier. The findings suggest that many professionals within the UK construction industry recognise a requirement for increased implementation of e-tendering, but feel that training, education and support from senior management are essential requirements for e-tendering to become widely accepted in the future.
What is the tendering process in construction?
Tendering is a vital business development strategy for most construction firms. Why? Because tendering is an effective way of securing new contracts from buyers you may not have had access previously to or even be aware of. So, what is tendering? As in all industries, tendering is an approach that is ultimately deemed to be the fairest way of procuring works, goods and services.
- The tendering process, however, can vary slightly depending on your industry sector.
- It is normally a formal process, aimed at procuring the most economically advantageous option.
- In order to secure the work, businesses have to demonstrate why they are the most appropriate supplier for the construction contract,
You must answer the buyer’s specification and evidence how you will meet the criteria of the contract.
What is eTendering and how does it work?
What Is eTendering and Its Process? The eTendering Process Itself – As you think about the question, what is eTendering and its process?”, depending on what type of eTender you decide on, they usually have a typical flow, which happens in four stages
Prequalification Issuance of tender to suppliers Receipt, review, and award of tenders Award of contract
How to start eTendering begins with prequalification. Prequalifying refers to finding suppliers that may be qualified to handle the job. Of course, if you are working with one supplier, such as with negotiated tender, you would skip this stage. During the issuance of the tender phase, you’re gathering information about your potential suppliers and evaluating your risk.
Similarly, on their side, they are evaluating risk as well. It is wise to note that, during this phase, the lowest bid is not always the best. It’s also important during this phase to include enough information to the suppliers, so they completely understand your needs, your specs, and the project so they can provide their best bid.
Many people have learned this the hard way because they didn’t ask, “what is eTendering and its process?” first. During receipt, review, and award of tenders, you may begin to narrow your choices down. There may be an additional negotiation phase. You may be continuing to evaluate risk.
What is a negotiated tender?
What Is eTendering and Its Process?Types of eTendering – There are several different types of eTendering, some of which may or may not apply to you, as some are more applicable if you’re in the governmental sector and are submitting those types of bids. The most common types of tenders are:
Open tender : This is used by both the governmental and private sectors and, in some cases, encourages the most competition between suppliers. It essentially offers an equal opportunity for anyone to submit a tender. You’ll see this the most in construction and engineering. Negotiated tender : This type of tender is also very common in the engineering and construction industries. This is a negotiation with a single supplier, and this contractor is usually in on the project from day one. Communication is usually top-notch, and costs are often reduced because you’re partnering with a familiar supplier, and together you can find ways to reduce costs on both sides of the table. The only downside is the lack of competition for an even lower price. Selective tender : In this type of tender, you only invite suppliers that you want to bid. This works well for complex contracts or strategic categories, and you can pick and choose who you feel may be a good fit. On the supplier side, this often excludes smaller companies who may do a good job and come in at a lower price but are under your radar. Single-stage and two-stage tendering : When these types of tenders are used, not all available information may be available when tendering begins. Negotiations may need to commence one or two times before a fixed price is agreed upon.
What is eTendering and eRFx?
What Is eTendering and Its Process? What Is eRFX? – The “X” in eRFX is just a placeholder. It may be a request for proposal, a request for information, a request for a quote, and so on. RFX. The X is just an easy stand-in for any feeler you put out along the supply chain.