123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Service >> View Article

Single-stage Vs Two-stage Procurement

Profile Picture
By Author: TenderTiger
Total Articles: 14
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

In critical situations in procurement, it is easy to understand why construction contractors often quote lower prices to win a tender. However, recent research figures within the civil works sector have been questioning the sustainability of such low rates, and whether the method of procurement is responsible for the same.

So let’s take a deep dive into the 2 main procurement routes; single-stage and two-stage tendering.


Single-stage tendering
Single-stage tendering, also known as traditional tendering, is when a client issues a tender for the entire project, with all the relevant information provided at the point of issue. The process aims to ensure that the client/buyer is able to secure various competitive price bids - due to which the contractor/bidder may decide to price aggressively/low in order to bag the project/contract.

It can be an efficient route to obtaining a contractor. However, if elements from the project specification are missing or are unclear, it can lead to adjustments being made later in the contract, and the final account may be very different as unforeseen costs mount ...
... up.


Advantages:
1. A single-stage tender is advantageous to a bidder, no matter what resources they currently have.
2. It’s a quick conventional tendering process.
3. The client can look forward to price-competitive bids, making it a value-for-money project.

Disadvantages:
1. The contractor at times may not understand the project design while he is preparing his bid document.
2. Competitive price pressure may make the contractor bid lower than the actual.
3. The risk factor is not accounted for as the price is quoted on the basis of the tender document information shared by the client.
4. The contractor will not be able to adjust to changes in the project once the tender is awarded.

Two-stage tendering
Two-stage tendering involves an initial information stage, facilitating early collaboration between client and contractor. For most projects, and especially for those that are more complex, it is useful to obtain input before there is sufficient information available for the main contract. This enables early input between the main contractor and client, helping to ensure design and cost certainty. This method of procurement accelerates timelines as it's a pre-known factor discussed between the buyer and the service giver.

This initial phase allows the contractor to submit details under a pre-construction agreement and includes aspects regarding project preliminaries, method statements, design, overheads, and profit.


Advantages:
1. Greater cost certainty is achieved as the scope of work is well defined and communicated.
2. Contractor involvement helps them identify potential risks making them ready for the same.
3. Project implementation has achievable deadlines avoiding damages towards delay of project completion.

Disadvantages::
1. The bid price is higher as it involves pre-tender discussions.
2. The two-stage tendering process may be more time-consuming and this may not be appealing to employers with a tight development programme.
3. Increased contractor involvement in the initial project planning stage can play a negative role in the design plan if the contractor has hidden agendas.

Let’s have a look at a distinguishing table for the 2 stages for more concept clarity:

There is no right and wrong when it comes to choosing which stage of tendering you must go for. Both have their own set of pros and cons where the client/buyer needs to take a thoughtful call on which type of stage will work best as per his requirements. E-tender portals nowadays allow not only clients to source contractors but also contractors to source active tenders on their websites. Housing 2 million+ tenders annual, TenderTiger (https://www.tendertiger.com/) ensures you will never miss a tender.


You may also be keen to know about the procurement process involved in a tendering process.

Total Views: 154Word Count: 585See All articles From Author

Add Comment

Service Articles

1. Evaluating Top Content Management Software In 2025: A Comprehensive Overview
Author: Stellanova GlobalTech

2. Bleach Manufacturers: A Guide To Bulk Sourcing & Import-export Services
Author: Lions Sales group

3. Crafting Unforgettable Corporate Events With The Best Practices & Tips
Author: Mehar MICE & Hospitality

4. The Benefits Of Expert Office Furniture Assembly For A Productive Workspace
Author: MJ Sater

5. Comprehensive London Office Cleaning Services For Businesses Of All Sizes
Author: Steve Humphrey

6. What Are The Benefits Of Lactobacillus Lactis ?
Author: vakyaprob

7. What Is Lactobacillus Lactis Used For?
Author: vakyaprob

8. Meeting The Demands Of Modern Data Centers With High Density Cooling
Author: Excool LTD

9. Calcium Feed Supplement
Author: Alicanto Vetcare

10. What Is Dry Eye And What Are Its Symptoms?
Author: Alester

11. Ndis Disability Service Providers Central Coast
Author: Classy Life:

12. Ndis Accommodation Central Coast | Sil Providers Central Coast | Sta Providers Central Coast
Author: Classy Life

13. Why Your Business Needs A Mobile App And How To Get It Right
Author: Digiprima

14. Master Cad Design With Certified Cad Training In Coimbatore
Author: CADDCbe

15. Ghost Labs
Author: Ghost Labs

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: