A contractor has returned our BoQ and we feel the contractor has applied too hugh a duration for certain elements of the work, i.e. contractor states 10hrs for a gang to complete ‘A’.
We believe ‘A’ can be carried out in 5hrs, and therefore half the cost.
There are no other tenderers so we feel the contractor knows there is no competition, can we reject the durations?
Thanks
If you are negotiating a contract, it’s offer and acceptance (and a bit of counter offer and acceptance)
If he is the only tenderer, you’ll have a tough job to get him down unless you specify the duration in the scope (which you shouldn’t do)
Thanks for the reply.
When you say ‘if you are negotiating a contract’, could you elaborate?
They are the only tenderer, so in that case the only option is to REJECT?
It depends on your organisation’s procurement policies. There is no legal/contractual reason why you shouldn’t make a proposal to the single tenderer. However, as previously stated, the single tenderer is in a strong position.
I would suggest that you consider what you believe is the ‘extra’ cost that you would be incurring, in comparison to the cost arising from having to go out to tender again, along with the consequential cost of the delay that would be incurred, which may bring you back to the same situation - or you may even find that you get no tenders at all second time around.
Having considered all the above, you will probably find that it’s best to just accept the one tender you have.
The world is not always black and white
If he is the only tenderer, you are best trying to negotiate
You can do this by requesting or issuing clarifications.
I th current market, the tendency to REJECT won’t get you too far