What is tendering?

Tendering is the process in which a client invites multiple contractors or firms to submit a price quotation for the execution of a building project. The aim is to find the best value for money for the work to be carried out.

How does tendering work?

During a tender process, the client goes through several steps:

1. Prepare specifications — a detailed description of the work, including drawings and specifications
2. Invite contractors — selected firms receive the tender documents
3. Receive quotations — the contractors calculate their price and submit a quotation
4. Evaluate and award — the client compares the quotations and selects the contractor

Application

Selective tendering

The client invites a limited number of contractors (usually 3-5). This is the most common form for private building projects and smaller works.

Open tendering

Any firm can submit a bid. Mandatory for government projects above a certain threshold value. Selection is based on pre-defined criteria.

Single-source procurement

Only one contractor is approached. This occurs for specialist work or when an existing trust relationship exists.

Tendering for private projects

Even when building a shed, garage or extension, it is wise to tender:

• Request at least 3 quotations — this gives a good picture of the market price
• Provide a clear description — the more detailed, the easier it is to compare quotations
• Don’t focus on price alone — experience, references and scheduling are equally important
• Ask for an itemised quotation — so you can see exactly what you are paying for

Related terms

• Building specification
• Contractor
• Planning permission
• Building costs
• Building code

Learn more about building terms in our knowledge base at fredsdiyplans.com.