In continuation to a previous blog post of the various forms of tendering used by developers to award the right consultant or contractors, it’s important to note that the tendering process does not stop here and that there are other stages in the tendering cycle. Once the vendor management stage has begun, the next stage in the process is the invitation management stage.At the invitation management stage, developers issue a formal invitation for consultants or contractors to make an offer for the project based on the requirements, which can vary depending on the different types of tendering. The invitation to tender may be issued for not just one but a range of contracts, including works, fittings, equipment supply and the like, by the developer. Again, this depends as developers usually award contractors who then sub-contract these works to suppliers.
Specifically for contractors, the invitation management stage may involve a pre-qualification questionnaire (PQQ) that is sent by the developers. The PQQ is a series of questions by the developer for potential contractors to understand the level of expertise, scope of work, and financial stability. Shortlisted contractors are then invited to tender for the contract. Consultants on the other hand, are generally invited to tender without going through the PQQ phase
In some cases, prior to an invitation to tender, developers may include a pre-tendering interview step with potential contractors or consultants, in order to assess:
- If bidders understand the commission of a project
- The bidder’s approach to the project
- The willingness to go beyond the scope of work
- The bidder’s workload and labour productivity
- The proposed timeline for the construction of the project are achievable and within requirements
- The proposed nature of the tender will achieve the best results
Note, the price element of the contract is not featured in the PQQ nor pre-tender interview stage as these are the basis to assess only whether a bidder should be invited to tender. The purpose of including a PQQ and pre-tender interview assessment is to avoid time being wasted preparing and assessing inappropriate tenders through scoring.
The invitation to tender by the developer should have all the information pertaining to the contract, available for bidders - including, but not limited to:
- A formal invitation to tender
- Pre-construction information and other site information
- Contract condition and management - this may include building information modelling (BIM) such as 3D visualization
- Pricing document
- Drawing schedules
- Evaluation process
Some developers prefer that tender documents are further categorised into a series of packages based on design, requirements, specifications etc. even though it may be one main contract. With eTendering, a breakdown enables the bidder to better understand the scope of the project and pricing based on the developer’s requirements. This makes tendering easier for developers to shortlist the right contractors. The invitation management stage is crucial to the developer because this sets the basis of selecting the right vendors to work with - from contractors to suppliers.
Most of this article pertains to how developers manage their tendering process, but if you are a subcontractor looking to expand business with contractors, click here to find out how this can be done.