Tendering is a critical phase in construction projects, often accompanied by challenges that can impact project timelines, costs, and relationships. Below are examples of common issues encountered in tendering and the strategies used to resolve them effectively.
Issue: In a road construction project, unclear specifications
in the tender documents led to varying interpretations by bidders. This caused
delays in the evaluation process and disputes during contract execution.
Resolution: The client issued addenda clarifying the
specifications and organized a pre-bid meeting to address bidders' concerns.
These steps ensured uniform understanding and improved bid quality.
Issue: For a residential housing project, the estimated
budget provided in the tender was significantly lower than market rates. This
led to limited participation from contractors and inflated bids.
Resolution: The client engaged an independent cost consultant
to review and revise the budget based on current market trends. The updated
estimates attracted competitive bids, improving project feasibility.
Issue: In a hospital construction project, an inexperienced
contractor was awarded the contract, resulting in delays and quality issues.
Resolution: The client implemented a robust prequalification
process for future tenders, ensuring only contractors with relevant expertise
and financial capacity were shortlisted.
Issue: A metro rail project faced protests from bidders over
perceived favoritism in bid evaluations due to subjective criteria.
Resolution: The client introduced transparent evaluation
metrics, with weightages clearly defined for technical and financial aspects.
Independent consultants were also engaged to oversee the evaluation process.
Issue: In a bridge construction project, the tender allocated
all risks to the contractor, leading to inflated bids and limited competition.
Resolution: The client revised the tender to share risks
equitably, such as subsurface conditions and material price fluctuations. This
approach attracted more bidders and resulted in reasonable pricing.
Issue: In an airport expansion project, prolonged decision-making
delayed the award of the tender, increasing project costs due to inflation.
Resolution: The client streamlined internal approval processes
and introduced strict timelines for decision-making in future tenders. This
reduced delays and improved stakeholder confidence.
Issue: A solar power project received limited bids because
the tender requirements were misaligned with market capabilities.
Resolution: The client conducted a market sounding exercise
before reissuing the tender, gathering feedback from potential bidders. The
revised tender aligned with industry capabilities, leading to better
participation.
Common issues in tendering can be mitigated through proactive measures such as clear documentation, realistic budgeting, and transparent evaluation criteria. Real-world examples highlight the importance of learning from past challenges to enhance the tendering process and ensure project success.