Tendering & Commercial Negotiations

 

Tendering is the process of selecting the most suitable contractor for a construction project. The tendering process involves two distinct mutually exclusive activities. The first activity involves the preparation of tender estimates by contractors for the purpose of submitting a bid. The second activity deals with the evaluation of the bids submitted by contractors to enable the best contractor(s) to be selected and is normally carried out by owners and/or their professional advisors (Al Wafrah) such as quantity surveyors and project managers. The tender evaluation method used is critical to the success of the project because it strongly affects the subsequent outcome of the project. Thus contractor selection and evaluation methods can make or mar a project. Indeed a common contention of various investigations into the problems of the construction industry has been that problems can be brought to a project as soon as the ‘wrong’ contractor is chosen. Al Wafrah focuses on tender evaluation and is concerned with the issue of contractor selection; largely judicious selection of procurement route and contractor were prerequisites to project success. Al Wafrah compares the traditional lowest bidder approach bearing in mind the capability of such bidder and the relevant reputation in Egypt market.