LIMITED / REGISTERED /

CLOSED / SELECTIVE / RESTRICTED

TENDERING
Subheading goes here

Restricted Bidding
Restricted tendering is a procurement method that limits the request for tenders to a select
number of suppliers, contractors or service providers. This method of procurement is also
called: Limited Bidding and Selective Tendering.
Although considered a competitive procurement method, competition is limited to only firms
shortlisted or invited by the procuring entity.
A process should be in place for arriving at the number and specific firms that will be invited;
that number however is dependent on the stipulations of the public procurement legal
framework.
Any decision to use the Restricted Tendering procurement method must conform to the
policies and procedures governing the procurement system
A basic characteristic of this method is that competition is confined to a certain number of
firms either because only a few firms are qualified to fulfill the specific type of requirement, or
certain conditions warrant the use of a limited number of firms in order to reduce the time and
cost of the selection process..

Selection Procedure for

contractor
Pre Qualification Procedure
One Stage: In one stage pre qualification criteria is
mentioned in notice inviting tender
Two Stage: Initial pre qualification is done for
contractor before they are given invitation to tender

Pre selected contractors from

maintained contractor's list by clients
procurement agency, consultant or
works department

Restricted Tenders (CPWD Manual 2014)

Cases where restricted tenders can be
resorted:

Restricted tenders of any value can be called in the

following
cases with the prior
approval of the DG, CPWD.

(i) The work is required to be executed with very great speed, and
not all
contractors are in a position to generate.

(ii) The work is of special nature requiring specialised

equipment, which is not
likely
to be
all nature
contractors.
(iii)
Where
theavailable
work is ofwith
secret
and public announcement
is not
desirable.

(iv) Where the list of pre-qualified contractors is required to be

shortened to a
suitable
limitedofnumber.
(v)
Maintenance
VIP residences/important buildings as decided
by Chief
Engineer concerned.
(vi) Other exigencies of the work so
demand.

Selective Tendering : Single

Stage

Selected bidders (typically 4-7) are asked to sub

The client evaluate the tenders and, if

accepted, a contract will be formed
between the client and the finally selected
contractor.
Advantages

Reduces time, effort & cost of tendering.

Less possibility of any firm quoting unrealistic price.
Fair Competition (not as high as open tendering).

Disadvantage:

Few good contractor may not get the chance.

Higher prices due to big contractors & limited competition.

Selective Tendering : Two

Stage

The client invites expression of interest (EOI) fro

qualified and experienced contractors.

The EOI generally calls for details for the contractor

and capabilities in handling projects of similar size,
complexity as that of proposed project
The client evaluates the submitted EOI & then ask
the selected contractor to submit complete
bids.
These bids are evaluated & after negotiation,
client will
enter into contract with the preferred contractor.

Selective
Tendering :

Two
Stage

Advantages:

Combines the benefits of open & single stage select

Combined strength of competition & negotiation.

Early involvement of contractor. Parallel designconstruction.

Good
competition between capable contractors

Disadvantages/Shortcomings:

The most preferred contractor may fail to

negotiate
with competitive prices.
Negotiation could drag on & increase complexity.