Selective tendering
A tender is a submission made by a prospective supplier in response to an invitation to tender. It makes an offer for the supply of goods or services. In construction, the main tender process is generally the selection, by the client, of a contractor to construct the works. However, as procurement routes have become more complex, so tenders may be sought for a wide range of goods and services.
Irrespective of the nature of the goods or services that are being sought, securing tenders generally follows one of a number of basic procedures:
- Open tendering.
- Selective tendering.
- Negotiated tendering.
- Serial tendering.
- Framework tendering.
Open tendering allows anyone to submit a tender to supply the goods or services that are required, generally in response to an advert giving notice that the contract is being tendered. On larger projects, there may then be a pre-qualification process that produces a short-list of suitable suppliers who will be invited to prepare tenders. This sort of pre-qualification process is not the same as selective tendering.
Selective tendering only allows suppliers to submit tenders by invitation. A pre-selected list of possible suppliers is prepared that are known by their track record to be suitable for a contract of the size, nature and complexity required. They might then be asked if they would be interested in tendering for the contract, and then based on the responses received, a number of them invited to tender (generally no more than 6). From the tenders received, a preferred tenderer is selected based on criteria such as price and quality and negotiations entered into.
Consultants or experienced clients may maintain ‘approved’ lists of prospective suppliers appropriate for particular types of contract and then regularly review performance to assess whether they should remain on the list.
Selective tendering may be particularly appropriate for specialist or complex contracts, or contracts where there are only a few suitable firms. Selective tendering will tend to be faster than open tendering, and can be seen as less wasteful, as there is no pre-qualification process as part of the tender procedure itself, and only suppliers that are known to be appropriate for the proposed contract are invited to prepare tenders. It can also give clients greater confidence that their requirements will be satisfied.
However, it can exclude smaller suppliers or those trying to establish themselves in a new market, it can reduce the potential for innovation, and it can be seen to introduce bias into tendering as firms may be excluded from approved lists for unknown reasons, because of a lack of awareness, or because of personal preferences. It can also result in prospective suppliers continually contacting clients and consultants to check that they are on the appropriate lists.
On public projects, or projects that include a publicly-funded element it may be necessary to advertise contracts. This is a requirement of the Public Contracts Regulations, intended to open up public procurement within the European Union and to ensure the free movement of supplies, services and works (see OJEU for more information).
Selective tendering can be either single stage or two stage. Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the information required to enable them to offer a fixed price. In the first stage, a limited appointment is agreed allowing them to begin work and in the second stage a fixed price is negotiated for the contract.
[edit] Related articles on Designing Buildings
- Appointing consultants.
- Common mistakes in construction tenders.
- Due diligence when selecting contractors or subcontractors.
- E-tendering.
- How to prepare tender documents.
- Invitation to tender.
- Mid-tender Interviews.
- OJEU procurement rules.
- Pre-qualification questionnaire.
- Pre-tender Interviews.
- Procurement routes.
- Tender documentation.
- Tender evaluation.
- Tender processes for construction contracts
- Tender.
- Tender settlement.
- Things to avoid when tendering.
- Two stage tender.
Featured articles and news
Global Asbestos Awareness Week 2025
Highlighting the continuing threat to trades persons.
The context, schemes, standards, roles and relevance of the Building Safety Act.
Retrofit 25 – What's Stopping Us?
Exhibition Opens at The Building Centre.
Types of work to existing buildings
A simple circular economy wiki breakdown with further links.
A threat to the creativity that makes London special.
How can digital twins boost profitability within construction?
The smart construction dashboard, as-built data and site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure Bill
An outline of the bill with a mix of reactions on potential impacts from IHBC, CIEEM, CIC, ACE and EIC.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.