Reason why you choose the type of tender for the project Selective tendering which is also known

as limited tender, the owner calls for bids from a few contractors in this type of tender. The contractors who are called by owners are known to have specialized in the special type of work and from whom he has, in the past, experienced results. This procedure is recommended for the public sector when the work requires specialized knowledge such as industrial construction. There are two type of Selective tendering: i. Single-Stage Tendering

Under this method tenders are invited either from the current standing list of approved contractors or from a short list of contractors who have responded to an advertisement in the national and technical press setting out details of the proposed development. The Code of Procedure for Single-Stage Selective Tendering 1991 which sets out guide rules for the system makes useful recommendations, including the following: a. Depending on the size of the project, five to eight contractors should be invited. b. Contractors should be given adequate notice of the intended project to enable them to ascertain whether spare capacity exists in their organization to enable them to undertake the proposed work. c. The contract period should be specified in the tender documents to restrict competition to price alone. However, separate offers based on a revised time are not discouraged. d. The tender period should be about four weeks. However, longer time may be given for large and complex projects.

ii.

Two-Stage Tendering

Two-stage selective tendering has combined elements of competition and negotiation into a formula where the employer could utilize the contractors expertise at an early stage of the project cycle so as to maximize innovation, ingenuity and quality and simultaneously optimize cost, time and resource input. The term two-stage tendering has been explained as, Commonly used to indicate situation where competition takes place to select a

contractor at an early stage on a basis which, because of the lack of information then available, precludes the determination of the contract price, this being settled at the second stage. It also suited to large and complex schemes where close collaboration with the contractor during the design stage will assist the search for the best solution for the employer in terms of cost, programme and design. The two-stage selective tendering system involves competitive selection of contractors in the first phase and negotiation in the second.

First Phase: Selection of suitable contractor The first stage is similar to single-stage competitive tendering, except in the level of information provided to the shortlist of tenderers, who have usually been included on the basis of their track record. Preliminaries, overheads, outline programme and pricing documents and partial design information are provided to a number of tenderers. It is not intended that a contract is entered into after the first stage process only that a tenderer is selected for the second stage where the pricing information is used in negotiation.

Second Phase Negotiation based on the information provided at tender stage. It involves collaboration between the design team and the selected contractor in finalizing the design and development of production drawings, the health and safety plan and the Bills of Quantities for the works, and will result in a final agreed sum for the works. It will also include methods of working, value engineering, advice by the contractor on buildability, negotiation and allocation of risk, management of the site, detailed programming and the procurement of subcontractors and suppliers. Once an agreement on the contract sum has been agreed, a contract can be completed between the contractor and client.

Overall management of the selective tender list system should be designed to give a fair distribution of opportunities to all recognized contractors over time. However, the contractors past performance is a prime consideration. Other factors that may be taken

into account include the location of the work, special requirements of the work, skill level of the contractor and commitments of the contractor.

Choosing of Two-Stage Selective Tendering The first reason in choosing two-stage selective tendering is the time consumed in choosing the suitable contractor will be shorter compared to the open tendering. Although in open tender, we might have better and cheaper price from the contractors, but the time in this process is much longer compared to selective tender. Hence, time saving obtained by using this type of tendering process as the government wants to complete the highway between Terengganu and Perlis on time. The saving of time also can be made due to the overlap of design and tendering stage. The work can be commenced early even when the magnitude of the work is not known with sufficient certainty at the time of site possession.

In two-stage selective tendering, five to eight suitable contractors are invited and are given adequate notice of the intended project to enable them to ascertain whether spare capacity exists in their organization to enable them to undertake the proposed work. So, this type of tender is suitable for the specific works that government wants which is the highway construction between Terengganu and Perlis. It is because in highway construction, we need to have higher efficiency and more experience contractor to avoid any loss making. There are basically lower percentage in claims and disputes in the postcontract award stage due to the contractors involvement at the design/ pre-contract stage. Experience has shown that the contractor has a clearer understanding of the requirements and a better appreciation of the intricacies of the design and contract documentation. Better project management by the contractor chosen from selective tendering leads to the cost of changes is minimized. We can get the suitable contractor that is specializing in the construction work of highway and minimize the delay of work progress.

The contractor chosen usually has the clear awareness of possible success in bidding and he will spare capacity in his organization to accommodate the project. So, the contractor mostly satisfies the accountability requirement in contracts for public sector client like

government. The reputation and experience in the contractors from selective tender are usually reliable with their proven record in relation to the type and size of contract. Although the primary design responsibility is shouldered by the professional designers, the contractor contributes his specialist expertise before the works are fully designed, to ensure that a more innovative, production-friendly and cost-effective design can be realized. Furthermore, the best aspects in two-stage selective tendering are both of the competition and negotiation can be achieved to the most favorable arrangement at an optimum price before the commence of works.

The above are the reason why we choose selective tender as the tender for the project of government wants to build a highway between Terengganu and Perlis and wants to finish it on time. We believe that the selective tendering is the most suitable for the government conditions and needs.