Open or Public Tender | Advantages & Disadvantages

Open or Public Tender

In this type of tender, any contractor can enter into competition and all formalities of giving opportunity to complete are to be fulfilled. It is compulsory for public works and because of competition; it may result in low cost.

The tenders are invited by an advertisement in news paper.

Open or public tenders are father divided into two categories.

a) Global tender

b) Public tender

The fundamental requirements of open tendering are that they should:

1. Be open to all qualified and interested bidders,

2. Be advertised locally (and internationally, when required),

3. Have objective qualifications criteria,

4. Have neutral and clear technical specifications,

5. Have clear and objective evaluation criteria, and

6. Be awarded to the least-cost provider, without contract negotiations.

Advantages

1. This method helps the new contractor to show their skill and efficiency.

2. This method safe guard the interest of the contractor from being denied the tendering opportunities.

3. This method protects the government and other public concern bodies from possible favouritism.

4. In this method tenderer tries to execute the best quality work at low cost; hence work may be economical.

5. There is healthy competition among intending tenderers.

Disadvantages

1. The process of tendering is lengthy and time consuming.