Explain the following tendering: competitive tender, open tender, selective tender?

Competitive tender: In a competitive tender, multiple suppliers or contractors are invited to submit bids or proposals for a project or contract. The bids are evaluated based on predetermined criteria such as price, quality, and experience, and the contract is awarded to the supplier or contractor who offers the best value for money.

Open tender: In an open tender, the invitation to bid is publicly advertised and open to all interested suppliers or contractors. Any qualified supplier or contractor can submit a bid, and the selection process is transparent and fair. Open tenders are often used for public sector projects to ensure equal opportunity and competition among suppliers.

Selective tender: In a selective tender, only a pre-selected list of suppliers or contractors are invited to submit bids for a project or contract. The selection process is based on criteria such as experience, reputation, and capability, and only those suppliers who meet the requirements are invited to participate. Selective tenders are often used for complex or specialized projects where specific expertise is required.

Competitive Tender

- Involves a bidding process open to all eligible contractors who meet certain criteria.
- Contractors submit bids based on their proposed pricing, qualifications, and technical capabilities.
- The award is typically made to the lowest or most advantageous bid that meets the tender requirements.
- Used for large and complex projects where competition is important to ensure cost-effectiveness and quality.

Open Tender

- A type of competitive tender where invitations are advertised publicly, allowing any interested contractor to participate.
- Notices are published in newspapers, industry publications, or online platforms.
- It ensures transparency and equal opportunity for all potential bidders.
- Typically used for publicly funded projects or projects where a wide range of contractors are available.

Selective Tender

- Involves inviting a limited number of prequalified contractors to submit bids.
- Contractors are selected based on their experience, qualifications, and track record.
- It allows the tendering authority to focus on contractors known to have the necessary capabilities.
- Used for projects where a high level of expertise and specialization is required, or where there is a need to limit the number of bidders.

Key Differences

| Feature | Competitive Tender | Open Tender | Selective Tender |
|---|---|---|---|
| Contractor Participation | Open to all eligible | Any interested contractor | Limited to prequalified contractors |
| Advertisement | Publicly advertised | Publicly advertised | Invitations sent to prequalified contractors |
| Selection Criteria | Pricing, qualifications, technical capabilities | Lowest or most advantageous bid | Experience, qualifications, track record |
| Transparency | High (open to all) | High (publicly advertised) | Limited (only prequalified contractors) |
| Competition | High | High | Limited (prequalified contractors only) |
| Suitability | Large, complex projects | Publicly funded projects, projects with many potential contractors | Projects requiring high expertise, limited bidder pool |