Negotiated Tendering Definition

Negotiated tendering, sometimes called selective tendering, is a process whereby the procuring authority invites only a limited number of contractors to bid for a project. The selection criteria used by the procuring authority will vary depending on the project requirements, but may include factors such as experience, financial stability, and capacity.

The main advantage of negotiated tendering is that it allows the procuring authority to tailor the procurement process to the specific needs of the project. This can lead to a more efficient and cost-effective outcome than using an open or closed tendering process.

There are some potential disadvantages of negotiated tendering that should be considered before deciding to use this method. These include the potential for favoritism or collusion among contractors, and the increased risk that contractors will submit inflated bids due to their lack of competition.