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What is the construction tendering process?

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Answer

In construction, the tendering process is the main way general contracting firms invite subcontractors to place a tender on work the main contractor wants to subcontract out. Main contractor’s contract out the majority of site work to subcontractors, so the tendering process is an incredibly integral part of a construction project. This process allows main contractors to hire subcontractors at a competitive rate.

Construction Process

  1. Main contractors send tender invitations to subcontractors.
    • Subcontractors receive a tender package that outlines the scope of work that needs to be complete.
    • Subcontractors download tender documents and review the project information based on their cost codes.
    • Subcontractors submit their tender to the main contractor of the project.
  2. Main contractors award a tender to the subcontractor with the winning tender and convert it to a commitment.

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