Stage 4 of 7 · Procure

Tendering and bid comparison

Send packages to bidders, level the returned prices and recommend an award.

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Level bids side by side Bid leveling table comparing three bidders on the Masonry and blockwork package

Output: Tender package, bid comparison and award recommendation
Module: Tendering and procurement
Documents: Invitation to tender
Tender returns
Bid comparison
Award recommendation
Standards and references: EU Directive 2014/24/EU
UK Procurement Act 2023
VOB/A
US FAR

What it is

Tendering is the process of inviting prices for work on equal terms and choosing a supplier. It covers preparing the tender package, prequalifying bidders, issuing documents, answering queries, receiving bids and comparing them on a like-for-like basis. It is used by clients appointing main contractors and by contractors letting packages to subcontractors.

A fair and well-documented tender produces a price that reflects the scope, and a contract that can be managed. Poor packages lead to qualified bids, gaps between trades and later claims. Bid levelling, where each bid is adjusted for exclusions and errors so they can be compared, is where much of the commercial value is won or lost. Public clients must also follow procurement law on transparency and equal treatment.

Who does it

Procurement or tender manager: Runs the process, issues documents, manages the timetable and the question log.
Quantity surveyor or estimator: Prepares the pricing document, levels the bids and reports on value.
Design team: Answers technical queries and reviews alternative proposals.
Bidders: Price the work, raise queries and state any qualifications.
Client or commercial director: Approves the award recommendation.

How it runs

Define the package
Set the scope, interfaces with other packages, contract form and pricing document.
Prequalify bidders
Check experience, capacity, financial standing and safety record before inviting bids.
Issue the invitation
Send the same documents and deadline to all bidders and record what was sent.
Manage queries
Answer questions in writing and share answers with all bidders, issuing addenda where scope changes.
Receive and open bids
Collect bids by the deadline and record them under controlled conditions.
Level and compare
Adjust each bid for exclusions, qualifications and arithmetical errors, then compare on equal scope.
Recommend and award
Prepare the recommendation, clarify remaining points and issue the award.

How it differs by country

United Kingdom: Public procurement is governed by the Procurement Act 2023, in force since February 2025. Main contracts are commonly JCT or NEC4, and two-stage tendering is frequent on larger building projects.
Germany: Public works are tendered under VOB/A, with open procedure (offenes Verfahren) as the normal route above thresholds. Bills are issued and returned in GAEB format, and the contract terms follow VOB/B.
France: Public tenders follow the Code de la commande publique, usually with separate lots by trade. Bidders price the DPGF or BPU and DQE against the CCTP, and the CCAP sets the administrative terms, often referring to the CCAG-Travaux.
United States: Public work is usually let by sealed competitive bid to the lowest responsive and responsible bidder, often with bid bonds. Private work is often negotiated, and contracts commonly use AIA or ConsensusDocs forms.
International: Multilateral development banks require their own procurement rules, often with FIDIC-based conditions. FIDIC also publishes guidance on procurement procedures for its contract suite.

Common mistakes

Issuing packages with unclear scope boundaries between trades, so some work is priced twice and some not at all.
Answering a query for one bidder without sharing it with the others.
Comparing headline prices without levelling for exclusions and qualifications.
Allowing too little tender time for the complexity of the package.
Failing to record the reasons for the award, which weakens the client's position if challenged.

In OpenConstructionERP

Module: Tendering and procurement

OpenConstructionERP handles tenders through the Tendering module for bid package management, distribution, collection and comparison. Bid Management covers invitations, question and answer, submissions, levelling and award, while RFQ & Bidding supports smaller request-for-quotation rounds. Subcontractor Management holds prequalification and rating so that only suitable firms are invited. The Contract Types Engine records whether the resulting contract is lump-sum, GMP, cost-plus, time and materials, unit-price or design-build.

Tendering · Bid Management · RFQ & Bidding · Subcontractor Management · Contract Types Engine

The app runs at openconstructionacademy.com/app for course learners.