Why we need e-tendering

E-tendering is the traditional tendering process without the use of hard copy documents. Tender documents and returns are all exchanged electronically. This exchange of information can take place using hard media such as CDs or DVDs or through soft means such as the internet.

Do not be dazzled by the technology. There are particular procedures that flow from the introduction of e-tendering on a project. However, these are similar to the requirements when tendering on paper. It is crucial to ensure all the checks and balances that were in place with hard copy documents are still considered when e-tendering.

To succeed, all parties must consider the implications of the process and be prepared for the exercise, as there is often additional preparation in the form of technological interfaces, which are taken for granted when dealing with the world of paper.

Since the dot com boom, there has been a great deal of talk about the use of the internet and electronic means in general in procurement with many benefits promised for all involved.

Why do e-tendering?

There are advantages for everyone involved in the tendering process if it is properly implemented. Many are immediate and take little effort to achieve, others require a shift in the culture of the parties.

One of the most immediate benefits of a properly instigated move to e-tendering is the reduction in the cost of tendering for the design team and the contractors/sub-contractors involved. Printing costs will drop, as well as copying and postage costs, together with the associated staff time and overhead costs.

This reduction in waste, particularly the production of multiple copies of paper-based information, can also lead to a less environmentally demanding and more sustainable tender process.

There is also the potential to make significant savings by eliminating the need to double or triple enter the same information in the differing parties’ computer systems.

When tenders are returned electronically there is the potential for fairer assessment between the tenders with the use of computerised analysis. This analysis could be used to either cut time or potentially allow a fuller analysis of the offers received.

When firms collect the tender information electronically it is possible to aggregate their buying power, which should ultimately lead to a reduction in not only their costs but also the total cost of building.

Once the industry starts to adopt electronic tendering it will be possible to simplify and tune the tendering processes to take full advantage of the electronic exchange of information. This in turn should reduce tendering periods with all the benefits that flow from such a reduction.

Peter Sell is a partner at Davis Langdon and co-author of the RICS e-tendering guide