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What is Single-Stage Tendering?
Single-stage tendering, also known as traditional tendering, is when a client issues a tender for the whole project, with all the relevant information provided at the point of issue. The process aims to ensure that the client obtains a competitive price. To achieve this, the contractor might choose to submit an aggressively priced bid to win the project.
What are the advantages of Single-Stage Tendering?
- Quicker process – A bidder may or may not save time by submitting a bid in one go, however it’s important to note that it mitigates the risk of spending unprecedented amounts of time on a second stage in a two-stage tender.
- Competitive pricing – Clients benefit from a competitive tendering process, which can leave to competitive pricing.
- Inclusive Opportunity – As the whole project is tendered all at once, clients are able to compare bids from multiple contractors with different ranges of expertise and experience.
What are the disadvantages of Single-Step Tendering?
- Long Evaluation Period – Contractors may experience a longer evaluation period as the client sifts through a large amount of bids. In this instance, the Invitation to Tender‘s timetable may not be as accurate and should be seen only as a guideline.
- Limited Innovation in Designs – Due to the nature of ‘single-stage’ there is no additional stage for contractors to work with the client to create innovative or creative changes to the designs
- Risk for Contractors – Contractors may perceive single-stage tendering as a risk due to the amount of work that is required to submit their bid with no guarantee of winning a project.
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