Tendering contracts

Be sure you set a realistic schedule for it all.

Record in writing each section of the process in the form of a board report by management or as an agenda item at a board meeting. Be very clear and transparent with the process so your organization can look back and review how decisions were made.

Before you start the process, you will have to choose what type of tender best fits your task.

There are four different types of tenders

1. Open tenders

• Offered through public advertising.
• No restrictions on who can submit a tender.
• All required information must be submitted.
• All tenders are evaluated using the stated selection criteria.

2. Select tenders

• Only open to a select number of suppliers, such as:
  • those chosen from a previous open tender; and
  • a group of businesses your organization has worked with before.

3. Multi-stage tenders

• Used when there are a large number of respondents.
• At each stage in the process, the list of suppliers is narrowed down.

4. Invited tenders

• Select suppliers are contacted directly and invited to submit a tender.
• Generally used for specialist work, emergency situations or for low-value, low-risk and off-the-shelf options.

What is a tender package?

Fairness, and in some cases the law, requires that the same information be provided to all bidders in the form of a tender package.

The tender package is prepared in advance and should contain all of the information that a contractor will require in preparing a bid for the job.

What should be confirmed before developing the tender package?

• Plans and specifications, including site plans or mechanical, electrical and architectural drawings, are ready for distribution
• Building permit requirements
• Local availability of skilled and unskilled workers
• Quantities, quality and prices of locally available material
• Availability of suitable local equipment at competitive rental rates

Can a call for tenders be cancelled?

You can cancel a call for tenders at any time, including after reviewing bids, if you decide not to give a contract.

Most tender packages say that the organization does not necessarily have to accept the bids. This protects the organization if it decides not to go ahead with giving a contract.

All contractors who submitted bids must be told the call for tenders has been cancelled and their bid securities must be returned (if they were required as part of the bid).