There are a number of problems that can arise when using traditional, commercial construction delivery using the tendering process. Here are five common issues:
- Integrity of function loss: Most architects and builders take an outside-in view, focused on their own discipline This means that by the time they get to fitout, cost-cutting starts, and sight on the goal is lost.
- Time delays: The tendering process can be time-consuming, with delays caused by the need to prepare and evaluate bids, negotiate contracts, and obtain necessary approvals. This can result in significant delays to the overall project schedule.
- Cost overruns: The tendering process can create a competitive environment that can lead to contractors bidding low to win the job, which can result in cost overruns as they try to make up for the low bid after the project has begun.
- Lack of communication and collaboration: The tendering process can create a situation where the contractor is focused on winning the bid and not on collaborating with the owner, architect, and other stakeholders. This can lead to poor communication and coordination throughout the project.
- Risk allocation: In traditional tendering process, the risks for the projects are often poorly allocated, leading to disputes and delays, further exacerbating the problem.
- Limited Innovation : Tendering process tend to incentivize contractors to focus on low cost as a main goal rather than efficient or innovative solutions. And this can lead to limited innovation and lack of sustainability in the project.
It’s worth to mention that tendering process can have different approach or requirement depending on the country or project, but these are some common issues that can arise in the construction tendering process.