What is two-stage tendering?

The following Construction practice note provides comprehensive and up to date legal information covering:

  • What is two-stage tendering?
  • How does it differ from traditional single stage tendering?
  • Stage one
  • Stage two
  • Advantages and disadvantages of two-stage tendering and using PCSAs

What is two-stage tendering?

This Practice Note explains the 'two-stage tendering' approach commonly used to procure construction projects.

Many employers use two-stage tendering to involve contractors at an earlier stage. It enables the employer and the selected contractor to work in collaboration during the second stage, with the contractor able to input on the design, buildability and value engineering aspects of the project whilst arriving at its final price for the works. Two-stage tendering is most commonly used in the tendering of lump sum contracts, both traditional and design and build.

How does it differ from traditional single stage tendering?

Two-stage tendering is increasingly being used as an alternative to the traditional single stage tender approach.

Single stage tendering requires contractors to submit their tender for a project based on a design, shown by drawings and a specification or, if design and build, by the employer’s requirements and a programme. Based on the tenders received, the employer then selects the contractor that it wishes to appoint and with whom it will then enter into the building contract. The contractor therefore does not typically have any pre-construction involvement with the project before it enters into the building contract and embarks on the works.

By contrast, rather than asking contractors to submit a bid for the works in a competitive single stage tender process, two-stage tendering allows employers to negotiate with

Popular documents