Estimating & Tendering
The 5 Stages of the Construction Tendering Process
The tendering process in construction has several key stages. The process itself aims to ensure fair competition while obtaining competitive pricing. It’s in place to ensure the most suitable contractor can be chosen for your construction project. Your project type and size can sometimes impact the stages of your tendering process, but the route still typically remains the same.
1 – Pre-Tender
The initial phase of the tender process is known as Pre-Tender. During this stage, project requirements are outlined, the scope is established, and a timeline is created. This period allows buyers to evaluate market capabilities and prepare essential documentation and evaluation criteria, setting the foundation for the subsequent tender process.
2 – Selection
The selection stage is crucial, as it involves the release of tender documents, site visits, and interviews, along with providing clarifications to ensure that contractors have all the necessary information to prepare their proposals. Selecting the right supplier can be a challenging task, often requiring significant time to thoroughly evaluate the responses to tenders.
It is essential to review submitted tenders meticulously and assess them against predetermined criteria. Utilising a Pre-Qualification Questionnaire (PQQ) can help ensure that all criteria are satisfied. A careful evaluation of each supplier is vital for making an accurate and equitable decision.
At Wessex.CC, we offer a range of pre-qualified contractors to consider, which can save you both time and money. Our team is always available to assist clients, whether it involves advising on timelines, providing specialized market insights, developing tender documents, or offering guidance and support throughout the selection process.
3 – Submission
The Submission Stage represents the third phase of the construction tendering process, where prospective contractors prepare and submit their bids after thoroughly reviewing the tender documents. This stage also allows contractors to provide essential information about their businesses, demonstrating their understanding of the project and their suitability for its execution.
It is crucial to understand that the responsibility for evaluating bids and awarding contracts lies with the client, not Wessex.CC. This arrangement ensures that clients maintain full control over the selection process, enabling them to choose the contractor that best aligns with their specific needs and requirements.
4 – Getting into Contract
Arranging a contract requires careful consideration of the terms and conditions, as well as ensuring that both parties correctly sign the formal agreement. After selecting an appropriate tender, all stakeholders must collaborate to establish a construction contract that meets their collective needs. This process includes finalising pricing and providing essential details pertinent to the project.
For projects that follow a two-stage approach, a Pre-Construction Services Agreement (PCSA) is necessary. This agreement outlines the services to be delivered before construction begins. For further insights into the PCSA process, refer to our blog discussing the steps that follow the tender phase in construction.
In the construction industry, two common contract types are the New Engineering Contracts (NEC) and the Joint Contracts Tribunal (JCT). Understanding the key differences between these contracts is crucial for selecting the most suitable option for your project.
| Feature | The Joint Contracts Tribunal (JCT) | New Engineering Contract (NEC) |
|---|---|---|
| Most Popular Contract Type | Regarded as the UK’s standard construction contract | NEC4 is commonly used for engineering and construction project types |
| Language | Uses legal language with more precise terms | Uses simple English |
| Risk Transfer | Designed to transfer risks from the client to the contractor | Requires direct involvement from the client |
5 – Project Delivery
Project delivery represents the concluding phase of the tendering process, Signalling the commencement of actual work. This final stage requires addressing any outstanding details before construction can proceed according to the terms outlined in the contract. It is essential for the client to receive key deliverables and to have a clear understanding of the project timeline and execution plan, reinforcing the outcomes discussed in earlier phases.
Wessex.CC distinguishes itself by offering extensive post-tender support, equipping clients with essential tools for monthly reporting, pre-construction assistance, social value verification, and monitoring of local supply chain compliance. These exclusive services are designed to significantly enhance the success of your project, ensuring a smoother transition from planning to execution.
The Different Types of Tender Processes in Construction
Construction projects involve various tender processes, ranging from single-stage to direct award. Among these, single-stage tendering is one of the most prevalent strategies; however, it may not be suitable for every project. Each construction endeavor has unique requirements, and the choice of tendering process should align with the specific nature of the project.
Single-Stage
In a Single-Stage Tender, often referred to as a Traditional Tender, the tender documents are thoroughly prepared, usually at RIBA Stage 4. These documents include detailed survey information, ensuring that contractors have all the essential data needed to submit accurate and competitive cost proposals.
This tendering approach necessitates that the client provides complete project specifications from the outset. If the initial design lacks detail, it may result in disputes later due to required changes, complicating the process.
While Single-Stage Tendering is a common choice, it may not be suitable for every project, especially those with tight deadlines, as this method can prolong the contractor selection process. Additionally, it often involves more administrative work compared to alternative tendering methods, making it more appropriate for projects with simpler requirements.
Two-Stage
The two-stage tendering process involves an initial stage where both the client and contractor collaborate early on in a construction project, working together to refine design and cost estimates. This particular tender process is split into two sections:
- During the first selection stage of the process, contractors are required to meet extensive criteria. Potential contractors need to meet such criteria, proving their knowledge and experience to work on an upcoming project. The key commercial submissions at this stage typically include overheads and profit percentages, as well as preliminary costs
- Throughout the second half of the tender process, contractors will need to submit proposals which include key information about design development and costs
Proving to be less labour-intensive for contractors compared to most other processes, two-stage tendering has been the chosen route for many. A survey that was undertaken as part of the RIBA Construction Contracts and Law Report 2022 revealed that 37% of respondents had opted for two-stage tendering.
Open Tender
Open tendering, often known as competitive bidding, allows any interested party to submit a proposal for a project. This process typically involves advertising contract opportunities and inviting various vendors to place their bids. By fostering a competitive environment, open tendering encourages multiple parties to vie for the same contract, which can lead to more favorable pricing and innovative solutions. However, a significant drawback is the absence of a pre-qualified list of contractors, as seen in framework agreements, which can result in inefficiencies and higher costs for clients.
Wessex.CC stands out by offering a level of support, expertise, and risk management that is not commonly found in other frameworks. Their services include thorough financial checks and due diligence processes designed to safeguard against contractor insolvencies, ensuring that clients are better protected throughout the tendering process. This comprehensive approach not only enhances the reliability of the contractors but also contributes to a more efficient project execution
Direct Award
Direct Award Tendering refers to the process of awarding a contract without competition, streamlining the procurement procedure by eliminating the need for competitive bids. This method enables contractors and service providers to be appointed to a contract swiftly, with Wessex.CC completing the Direct Award process in just two days.
Wessex.cC Can Enhance The Procurement Process
Wessex.CC’s Framework is designed to enhance and streamline your procurement process, particularly for public sector organisations. We specialise in connecting these entities with high-quality contractors to successfully execute their projects. Additionally, we assist in identifying professional services consultants within your area, ensuring that you have access to the best resources available.
We are dedicated to supporting you throughout the entire tendering process. From the initial stages to the final steps, our team is committed to providing ongoing advice and assistance. You will have the flexibility to choose from four call-off methods, each tailored to accommodate different timelines, allowing us to help you select the most appropriate tendering approach.
By utilising our frameworks, you can achieve significant cost savings while enhancing the overall success of your construction projects. Our pre-qualification of suppliers reduces administrative burdens, enabling you to concentrate on launching your project effectively.
For more information about our tendering processes, we invite you to reach out to us today.