![]() ![]() This stage concludes when the preferred contractor is appointed, either on the basis of the provisions of an identified contract, or a separate PCSA. The initial stage 1 tender may also include competitive tendering of some already defined work packages, plus a lump sum or cost reimbursable price for pre-construction services and design fees. The tenderers submit a proposed construction programme, method statement, price for preliminaries and a percentage for overheads and profit during the life of the project. The employer tenders the project on a competitive basis, but based on an incomplete design prepared by the employer's design team, together with an outline price and programme for the works. There is then a second stage when the employer seeks to appoint a contractor for the construction works under a building contract. The contractor is appointed at a much earlier stage in the construction process than would normally be the case, but on a provisional basis, using a Pre-Construction Services Agreement ("PCSA"). It is designed to achieve the early appointment of a contractor on the basis of an agreement to undertake pre-construction services, with the intention that the parties will ultimately enter into a lump-sum contract, or a cost-reimbursable contract with a target price, following a period of negotiation. ![]() The study is addressed to Irish students undertaking studies on undergraduate and conversion masters courses in quantity surveying and construction management related disciplines.Two stage tendering is a method of procurement where the employer seeks to appoint a contractor at an initial stage of the project based on an outline scope of work. It explains the characteristics, advantages and disadvantages of the various tender options and seeks to inform decision making concerning selecting a suitable tender arrangement to achieve the client’s objectives. This study examines the factors which influence one of the most cost significant decisions a client will make in the course of a building contract. If there is no competition the contractor can, in effect, ‘name his price’. Even in the case of negotiated tenders there is implicit competition, as the employer can break off negotiations. The price which the contractor quotes for the job is heavily influenced by both the amount and intensity of the competition. In most building contracts the contractor is selected on the basis of competitive tendering. ![]() The study investigates open tendering, selective tendering, prequalification, two stage selective tendering, competitive dialogue, negotiation and serial tendering. This study examines the various options available for a client to appoint a contractor. ![]()
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