Competition Price

Posted October 12th, 2011 by Bryan

To conduct contractors bidding the customer object assigns a trade organizer and creates a special body – the Tender Board, which conducts and supervises the whole procedure. Bidding procedure begins with the publication in the print and the web Internet announcement of the competition on a particular object or set of works. During the specified time applicants, that is, persons or organizations that are going to fight for the right to receive the contract, should get a set of tender documents. It sets out the procedure, terms and procedure for tendering, as well as characteristics of the object – the subject of bidding and the requirements for applicants. Applicants on the basis of requirements set forth in the solicitation documents, must prepare tender bid to supply its price to fulfill the object and submit it within the stipulated period in the tender committee. There are several types Trade: Competition open, closed competition, contest a two-stage auction, request price quotations and purchase from a single source. In the bidding process, the conditions for equal competition between several applicants.

With an open competition – the most common method of public procurement – applicants are attracted by the open publication of information about the competition in the media and the Internet. There are cases where necessary to carry out private competition – if there are a limited number of companies capable of executing a specific set of works. At a closed tender to applicants send a special invitation, without publication in print. Procedures for two-stage competition is used in case of special complexity of the subject of trades when it comes to their process to refine the characteristics of objects. Auction – a procedure in which bidders may offer to change the price downward, until you reach a reasonable, minimum possible price. In some cases, when the volume and cost of the works are small, you can use the simplified forms contractor selection process – request price quotations, and purchase from a single source.

When you request quotes organizer of the sale sends a query to multiple bidders on prices for this type of work and then selects from the received offers one of the lowest price. Buying from a single source is used when there is only one producer of certain goods or services. The entire bidding procedure takes place in a strictly defined period of time – usually within 45 days of the announcement – and ends with a meeting of the tender commission, which opened the envelopes with the bids and determine the winner. Information about the auction results should be published in the media, and 10 days after that with the successful bidder is a government contract to carry out works.

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