The process of finding the right contractor can be difficult. Anyone who runs their own business or manages a property knows that there is a lot riding on finding the team or individual who can fulfil the brief, follow instructions, and deliver on what they have promised on time and within the budget.
This is why the search can be a long one and why management teams cast a wide net on the search for the right fit. The property market is booming right now, and there are a lot of contractors out there hungry for work. One of the key stages of any contractor contract agreement is the tendering phase. You may have heard this phrase before, but if you would like to learn more about how it works, read on.
What Is the First Stage of Tendering?
The tendering process begins once the client has sent out the details of a project in what are known as tender documents. The client is inviting contractors to put in their offers and bids for the project based on the information that they have received. An experienced client will know how to put together a detailed tender that will attract the right contractors.
What Is inthe Tender?
When the client knows that they need contractors for a project, they start work on putting together their list of must-haves. Often there will be a certain time frame that the project needs to be completed by. Say the client runs a hotel or a residential property. Work can often be noisy or otherwise intrusive, and you want to make sure that the amount of time that you have work happening in or on the property is kept to a minimum.
The budget range is also often a key component. Of course, the price given in the tender may be higher or lower than the final cost, but it is an important ballpark figure and an indication to contractors bidding of where they should be aiming for.
Are There Different Kinds of Tenders?
Generally speaking, the tendering process tends to come in either a single-stage tender process or a two-stage tender process. The latter is more commonly found when dealing with more complex projects. Here, there is a stage one bid in which contractors will offer ideas and timescales. The price would generally not be discussed until stage two after the client has had the opportunity to go through the different bids and decide what seems like the best fit.
With the single-stage tender, the process is a lot simpler. Within this process, you will find selective tendering, which is the client will choose who they send a tender to, open tendering, where the tender is advertised, and anyone can put in an offer.
What Happens Next?
Once the client has sent the tenders, the offers will start coming in. There will be strict guidelines in the tender for when they expect offers by and what information needs to be included in those offers. There is a bounce-back happening across many areas in Dubai, and a lot of that will be down to everyone doing their due diligence. When the client has chosen the contractor that they want to go with, there will likely be some further negotiation to hammer out any final details and go over any additional specifics, such as liabilities and insurance.