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What is Two Stage Tendering?
Two stage procurement (sometimes referred to as two-stage contracting or two stage tendering) is when a main contractor is instructed on a construction project in two stages:
- Firstly, for the pre-construction phase to carry out pre-construction services (often competitively tendered on a limited design basis)
- Secondly, for the construction phase to carry out the main works for the project (often competitively tendered once the design has been sufficiently developed, for example to RIBA Stage 3 or 4).
Why is Two Stage Tendering is used?
By getting contractors involved at an early stage, two stage tendering promotes collaboration for innovation of design and further idea creation.
Other benefits of two stage tendering:
- Increased Price Visibility and Certainty
- Reduce Bid Qualifications
- Better Risk Management
- Flexibility
Difference between Single Stage and Two Stage Tendering
Single stage tendering is when a client issues a tender for the whole project, with all the relevant information provided at the point of issue.
Whereas Two Stage Tendering allows an additional step to allow for early collaboration and thorough consideration and qualification of a project between client and contractors.
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