What factors influence the selection of the procurement and tendering methods?

Several factors are considered when deciding on the most suitable procurement and tendering method, including:

  • The value and complexity of the goods or services being procured: Different procurement methods are more appropriate for different types of projects. For example, a large and complex project may require a more formal procurement method, such as a competitive tendering process.
  • The time available for the procurement process: Some procurement methods, such as competitive tendering, can take a significant amount of time to complete. If time is limited, a more streamlined procurement method may be more appropriate.
  • The level of risk involved: Some procurement methods, such as sole-source procurement, can be more risky than others. The level of risk should be considered when deciding on the most appropriate procurement method.
  • The objectives of the procurement: The objectives of the procurement process, such as cost, quality and delivery time, should be considered when deciding on the most appropriate procurement method.
  • Legal and regulatory requirements: Procurement and tendering methods must comply with relevant laws and regulations, such as the procurement laws of the country and regulations of the organization.
  • The level of competition available: The level of competition available in the market for the goods or services being procured should also be considered when deciding on the most appropriate procurement method.
  • The level of uncertainty: The level of uncertainty associated with the project can impact the choice of procurement method. For example, if there is a high level of uncertainty surrounding the technical requirements of the project, a design-build procurement method may be more appropriate.

 

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