open tender

Open Tender

This means that the tender is open to any contractor or supplierwho can quote for the jobs or materials as per requirement. They must be registered with the Ministry of Finance (Treasury), Construction Industry Development Board of Malaysia (CIBD) and Contractor Service Centre (Pusat Khidmat Kontraktor – PKK) beforehand.

This type of tender is the most common tender used by Government projects. The main purpose is to get the lowest renderer to do the job.

This tender is usually advertised through the Tender Notice in Newspapers / Trade journals / Internet and other bulletins. Under an open tender procedure, all suppliers who respond to an advertisement are supplied with tender documentation.

All registered contarctors, will give their best price and the evolution committee will choose the contractor that they consider is the most eligible for undertaking the project.

Normally they go for the lowest price, however quality and time also need to be put into consideration.

ADVANTAGES
DISADVANTAGES
Healthy competition in choosing contractor.
Time consuming in preparation stage and advertisement stage. Not suitable for fast track project.

Give an opportunity to new contractors to involve in the tender.
Contractor are not encouraged to use new and high technology in construction due to the limited cost.

Client can choose the lowest price.
Possibilities to have a low quality product because contractor try to squeeze down the price in order to be the lowest tenderer.

Suitable for low or medium cost. Simple design does not require an experience or specialist contractor
Difficult decision making for the client because many contarctor are invited to the tendering stage but only one will be choosing.