Bids and Tenders

Having defined the project and its work volume, collected all drawings and specifications, selected the type of contract, and determined the final form of the contract, the next phase of complex administrative work dawns. In this phase, the project manager becomes familiar with the laws of each country govern­ing contracts and bids for projects. In this sphere, various solu­tions can be sought to reduce undue or unfair manipulation of the project and-or of its contractual arrangements. This is the sphere as well in which sources of possible or actual corruption can be challenged and exposed or blocked, so that fair competition between contractors is maintained and guaranteed.

Most countries have laws that enable access for foreign cons­truction companies to their markets while also encouraging local construction companies. As part of mastering this sphere of a proj­ect manager’s responsibilities, it is important to understand the laws governing tendering and bidding procedures. This affects the proj­ect’s primary objective of contracting with a service provider who can accomplish the project’s aims, delivering the required quality at the lowest price. Although the general principles and practices of commercial law are broadly the same across many countries, every country’s legal system has its own peculiar features and usages. Thus, it is not surprising to see international companies doing business in more than one country relying on a contracts department that can manage contracts and tenders according to the specific legal norms of contract law and tendering procedures of each country.

The general framework of the different types of tender is well-established, as are the conditions to be followed and the characteristics of each type of bid. There are certain differences in the financial limits and operational requirements among the main types of tender.

The four main types discussed below are: [7]