After a hand-full of qualified contractors are picked, they are invited to participate in the tender. A clarification and discussions meeting is held with all responsive bidders, and minutes of this meeting are prepared and distributed to all responsive bidders. Out of all the tender documents submitted only one contractor will get the job, so the employers has to make a decision on which contractor should get the job. Only suppliers who are subsequently short-listed can be invited to submit a tender. Most contracting authorities can use this procedure only in a limited number of cases, for example for supplies intended exclusively for research or testing purposes. Shorter tendering process Less contractors involved means less time spent on evaluating tender documents and better management of the tendering process. During the negotiated procedure, the Contracting Authority must adhere to the provisions of the applicable legislation and act as a public authority by applying these provisions, together with the principles governing public procurement e.
The public authority must invite at least 3 candidates to a dialogue in which the final technical, legal and economic aspects are defined. As per your query, the answer to it is this that after addition of above said clause in the bidding documents the contract period can be extended for a period of another year without retendering. Before accepting the offers, the employer will usually call the severalpotential contracts to further negotiate the price. . The advertisement contains information such as type of job, location of site, location of collection, closing date of tender, document fee and tender deposit. The dialogue is flexible and may include written or verbal submissions and interviews.
The time limit to request participation is 37 days from the publication of the contract notice. Highly competitive Forces the contractors to submit competitive prices to obtain the project. Once the contractor is selected, the contract document is made and sent out to all parties involved. After the publication of the contract notice, interested businesses have 37 days to request participation. Restrictions in the use of the negotiated procedure Although pursuant to the national and Community legislation Contracting Authorities are free to choose the open or restricted procedure whenever they see fit, they should opt for the negotiated procedure only in the cases listed exhaustively in the relevant Community Directives and in the transposition law. In this case, each applicant should be informed of the different weighting given to the different criteria i. Long negotiation period Negotiation can end up in endless arguments on the price of which the project can be constructed.
When the decision is made, the successfultender will meet the employer and consultants for further negotiation of price. Simplified tender evaluation The contractors participating are all reputable contractors so the quality of materials and workmanship will only differ slightly, hence consultants can just focus on the price of which these services come at. The results of this meeting are used to finalize the technical specifications and the scope of work. The negotiated procedure is an exceptional procedure and may be applied only to cases limited to those specified by the Law. The tendering time is also shorter making the total construction time shorter which allows for consumers to occupy the infrastructure in a shorter period. A key feature of this procurement method is that the submission of proposals takes place in two stages. The private sector frequently uses negotiated tendering.
Once bids are received, bids that do not meet the criteria are removed from consideration. · Once a firm is selected for negotiations, competition is lost, and this may impact price. The principal is free to choose the three companies involved. They may include aspects of environmental performance, design, safety, quality assurance or conformity assessment. Open tendering being the method with usually the most tenderers,cost of tendering is generally higher. Upon accepting the invitation, the contractors will purchase a copy of the tender document and fill in the rates of all the materials like in an opening tendering method. All the contractors are reputable which makes this method generally low risk high reward.
Worst case scenario is the agreement is called off due to not being able to agree on a right price. Thus mistakes in pricing can be reduced, so that both the engineer advising the employer and the contractor are confident that the job should be completed to budget if no unforeseen troubles arise. There are others which given the degree of complexity will not be discussed in this text. What is a 'negotiated tender'? The contractor, responsible for designing and facilitating the construction phase, may hire its own consultants. The employer usually follows the recommendations given by the consultants however he is not obliged to follow the recommendations. Usually this is for specialized work or when particular equipment is needed as an extension of existing works, or for further work following a previous contract.
The second procedure is the following: i Under this modality of the procedure, in the first stage prospective bidders are requested to submit proposals on a partially developed technical specifications, and they are expected to contribute to the completion of the technical specifications and provide a methodology and work plan for carrying out the assignment. · The second stage tendering time is reduced. The rationale is to save additional costs and time on re-tendering, hiring, training etc. There are currently four different tender procedures the Council may use: Restricted tender, open tender, negotiated tender and competitive dialogue. The contractor may also potentially not have the sufficient experience for the job at hand. First stage responsive bidders are then invited to submit technical and financial proposals based on the amended technical specifications and scope of work. The above are only two variations of the two-stage tendering procurement method.
Suppliers who are short-listed will be invited to participate in a competitive dialogue with the Council. There are 3 common categories people look into which are cost,quality and time. The number of contractors involved ranges from 5-10 participants. Negotiated procedure In a negotiated procedure the public authority invites at least 3 businesses with whom it will negotiate the terms of the contract. If you have not been selected, you are entitled to a detailed explanation of why your tender was rejected. · There is risk of price escalation, and negotiations becoming adversarial in the second stage. If he chooses the lowest tender he runs the risk the tenderer has not studied the contract sufficiently to appraise the risks involved; or the tenderer might not have the technical or financial resources to undertake the work successfully.
Lowcost ofdocumentation Less tender documents are required to accommodate the participating contractors this lowers the printing fee. Open tendering is also known as open competitive bidding, open competition or open solicitation, and the procurement notices used to call for bids for these requirements are identified as: Invitation for Bids or Invitation to Tender. To acquire the optimal balance between the 2 factors,selective tendering seems to be the right choice for this project. In case of failure of the negotiations with the Interim Contractor, the Contracting Authority may proceed to negotiations with the second candidate on the list, and so on. The initial tender is for one year but incorporating this clause can allow it to be extended for another year without re-tendering. Also, knowing their chances of gaining the contract are small, contractors may not study the contract in detail to work out their minimum price, but simply quote a price that will be certain to bring them a profit if they win the contract.
This can also be said for experience for similar projects. Technical specifications Technical specifications define the characteristics of the service, supply or works that the public authority intends to buy. This type of negotiation is used to procure services in specialized areas. Negotiated tendering achieves a contract between a client and a contractor by direct negotiation, rather than competitive bidding. Employer incurs resources Preparing the list of contractors for pre-qualification requires for the contractor to make his on list using his own resources and means to do so. The open tender procedure is normally only used where the known market place is limited. Long tender process Open tender is generally longer since it calls all possible contractors to tender and upon submission of tender it requires the consultants to go through every single one of the tenders which is very time consuming.