The decision to tender for a particular contract is mainly the responsibility of the senior management of the contracting firm.
There are three possible stages during the estimating and tendering process where this decision must be made.
The first is during the pre-selection stage if a pre-selection is carried out. This decision would be based on pre-selection information provided by the client. It may include such information as;
- Name of the job
- Name of the client, consultant, architect, and quantity surveyor,
- Location of site
- General description of the work involved
- Approximate cost range of the project
- Details of nominated subcontractors for major items
- Forms of contract to be used
- Procedure to be adopted in examining and correcting bids
- Anticipated date for possession of the site
- Period for completion of the works
- Approximate date for submission of bid document
- Duration of the tender period
- Bid validity period
- Anticipated value of liquidated damages (if any)
- Details of bond requirements (if any)
- Any particular conditions relating to the contract
The contractor may have indicated their intention to submit a tender at the pre-selection stage. However, he has a further opportunity after receiving all contract documents to review them and consider, with the availability of full information, whether to proceed or not.
The third and final point of the decision on whether to submit a tender is after the estimate has been prepared and the bid is ready to be submitted. A decision at this stage not to tender is rare. But, allows the contractor to evaluate the events during the bid preparation period, sometimes the changes in workload that have occurred in that time.
The decision to bid will be based on the following factors;
- Company’s current workload
- Company’s financial resources
- Availability of resources to undertake the work
- Type of work
- Location of the contract
- Identity of the client or promoter and their representative
- Detailed examination of the contract document