In the world of tendering there are lots of different types of tenders that are available to different businesses. The most common three are open tenders, selective tenders, and negotiated tenders. Two of the less common types of tender are serial tenders and framework tenders.
Serial tendering centres around preparing tenders based on a typical or notional bill of quantities or a schedule of works. From these submitted rates tenders can be valued for a series of projects. This is typically over a fixed period of time and is followed by a more typical tendering procedure. Many businesses use serial tendering to cut back on costs and encourage competitive rates from suppliers to secure regular work.
Framework tendering is a type of tendering that works by using a framework agreement. A framework agreement is a type of contract that is used as a multi-supplier agreement to be a long term supplier for a business. Framework tender documents are likely to include a request for rates and time charges as well as a full breakdown of costs and overheads. From this, one or more suppliers will be selected.
Other important types of tender are single-stage and two-stage tenders. Single-stage tenders are used when all information needed to calculate a price for work, goods, or services is available when tendering begins. A business will be invited to tender and through the typical process, a tender will be appointed.
Two-stage tendering is predominantly utilised to allow for earlier appointment of a supplier, before any completion of information that would allow for a fixed price. Something known as a ‘limited appointment’ will be agreed upon to allow work to begin before a second stage when a fixed price is negotiated for the work being completed.
These types of tender all have different benefits to the businesses bidding for them, and the businesses providing the opportunities to tender. It is important for a business to understand the different types of tender that are available and have a working knowledge of the different tenders out there. This article is only a jumping-off point but will keep you in good stead to build your learning further.