In the construction field, selecting a contractor is not only the first step but also a decisive factor in the success of a project. A suitable contractor not only ensures the quality of the work but also helps optimize costs and construction time. However, among the many methods of contractor selection available today, finding the most appropriate approach for each project is not a simple task. So, how many methods of contractor selection are there, and what are the characteristics of each method? The answer will be provided by BIC in the article below.
The 2023 Procurement Law has brought about many important changes aimed at enhancing transparency, competition, and efficiency in public procurement activities. Below are the 9 main methods of contractor selection:
This is the most common method, applicable to large-scale projects or those requiring high technical standards. Any contractor that meets the criteria can participate. The process includes publicly announcing the invitation to bid, receiving bid documents, and evaluating based on technical criteria, pricing, and experience.
This method creates a competitive and transparent environment, allowing the owner to access a diverse range of contractors, thereby selecting the most suitable partner. However, open bidding often takes a considerable amount of time to complete.
Unlike open bidding, this method limits the number of contractors invited to participate, usually based on criteria such as experience, financial capacity, or ability to meet technical requirements.
This method is suitable for complex projects that demand high quality and timely delivery, where contractors are invited directly from a pre-approved list.
Contractor designation allows the project owner to invite a single contractor to execute the project, based on their capacity, experience, and ability to meet specific requirements. This designation is typically applied in emergency situations, exclusive projects, or special requests, accompanied by a thorough legal assessment to ensure transparency.
This form of bidding requires several contractors to be invited to submit quotes for the tender package. The process is simpler than open bidding and includes: preparing the request for quotes, receiving quotes, comparing, and negotiating terms. This method is often applied to small-value packages or simple tasks such as supplying materials and equipment.
Direct procurement allows the investor to sign contracts with suppliers without the need for a bidding committee. This form is suitable when there is an urgent need or when purchasing specific products and services. The process focuses on negotiating price, quality, and reasonable terms.
The investor actively manages the project directly, including planning, organizing construction, and supervising quality. This form is suitable for small-scale projects or when the owner has an available workforce and facilities.
This form encourages community involvement in various project stages, from providing feedback to monitoring. It is commonly applied to social projects, improving living conditions, or developing local infrastructure.
The investor and contractor negotiate directly on price and terms before signing the contract. This form is suitable for projects that require adjustments in pricing and implementation conditions.
Applicable when the project requires specific criteria that cannot be carried out through conventional methods, such as emergency projects or those with special technical requirements. Even without a bidding process, the project owner must ensure transparency and reasonableness in the contractor selection process.
The 2023 Bidding Law, with its diverse selection methods, ensures efficiency and quality in initial construction activities.
In addition to conventional forms, the 2023 Bidding Law has added more specific regulations with four contractor selection methods to optimize the selection process:
- One-stage, one-envelope method: Contractors submit a single proposal that includes both technical and financial components. This method is straightforward and time-saving, typically applied to less complex projects.
- One-stage, two-envelope method: Contractors submit technical proposals first for capability assessment, followed by financial proposals if they pass the technical stage. This approach ensures that only contractors meeting technical requirements are considered for pricing.
- Two-stage, one-envelope method: The selection process is divided into two stages, aiming to clarify technical requirements in the first stage, but contractors only need to submit one proposal. This method is suitable for projects that require adjustments to technical specifications during the bidding process.
- Two-stage, two-envelope method: Similar to the above method, but contractors must submit technical and financial proposals separately in two stages. This allows the project owner additional time to evaluate each part of the proposal in detail and accurately.
These methods not only provide flexibility but also enhance transparency, making them suitable for projects with high technical requirements or those that need a comprehensive assessment of contractor capabilities.
Selecting a contractor is a crucial step that determines the success of the project. To ensure the project achieves the highest efficiency in terms of cost, quality, and schedule, choosing the right method is essential. Let BIC, with its extensive experience and expertise, accompany you in consulting and developing the most optimal solutions. Contact us now for professional and dedicated support!
